Why not just reduce taxes for poorer people

[MGB]

Quote from Humpy:

Consider if you will
Q.Which is supposedly the richest country in the world ?
A. the usa

Q. which is the richest state in the usa ?
A. California

Q.So how come California is teatering on the brink of bankruptcy ?
A. People dont want to pay their taxes.

What happens in Cali today spreads to the rest of the USA tomorrow. Worrying is it not ? No social or public services because there is no money means big trouble.
So be good boys and girls and pay your damn taxes !!!!!!!!!!!!!!

California is providing services to immigrants who do not pay taxes because they are employed illegally. This is a factor on why California is teetering on the brink of bankruptcy.

However, if the FairTax was implemented, all immigrants pay their fair share of taxes when they buy goods and services, regardless if they are employed legally or not.

 

[asiaprop]

why not removing any sort of income tax brackets and have everyone pay the same percentage amount of their earnings in taxes. First of all this would be truly FAIR. Then it would keep the masses working hard and force the government to stop spending on needless things. The majority of people would then ensure government is actually staffed by people who are knowledgeable of MANAGING available funds rather than having idiots sitting around whose only purpose in life is to collect lobbyists' "contributions".

What brings our economies worldwide to a standstill is not Wall Street, is not Goldman Sachs, no, it is our very governments who are filled to the hilt with filth, bribes, questionable contributions that keeps our representatives away from actually representing us but representing the contributor.

Quote from morganist:

poorer people are financially helped by the gov, so why are they taxed surely if they are taxed then given money back it is self defeating. why didn't govs instead of borrowing to increase aggregate demand reduce tax for low income earners who were then helped with the fiscal stimulus. the money would not have been taken from them in the first place necessitating gov help. also we would not owe money. is it just to maintain the power of the government.

is this not obvious. it is however still a viable option. reduce tax for poorer people and aggregate demand will increase instead of gov stim. this would reduce the need for gov help as people would have more money due to not having to pay so much tax.

 

[MGB]

Quote from asiaprop:

why not removing any sort of income tax brackets and have everyone pay the same percentage amount of their earnings in taxes. First of all this would be truly FAIR. Then it would keep the masses working hard and force the government to stop spending on needless things. The majority of people would then ensure government is actually staffed by people who are knowledgeable of MANAGING available funds rather than having idiots sitting around whose only purpose in life is to collect lobbyists' "contributions".

+1

The FairTax does that very nicely.

 

[morganist]

Quote from MKTrader:

i dont no. i have trouble following all this teen texting looking stuff and run on sentences from somone who thinks they R an econ wiz after a few college classes

do you mean. i don't know?

 

[AlpineTrout]

Quote from asiaprop:

why not removing any sort of income tax brackets and have everyone pay the same percentage amount of their earnings in taxes. First of all this would be truly FAIR.

The flat tax retains the invasive income tax administration apparatus and can easily revert to a graduated, convoluted mess, as it has many times over many years.

In contrast, the FairTax is simple, easy to understand, and visible. It cannot be converted into an income tax.

 

[bigarrow]

Quote from AlpineTrout:

How much is enough, 50%, 60%, 75%?

One of the things I love about the FairTax idea, is that even though it's revenue neutral, set at 23% (retail sales tax), if the government wanted to raise taxes, they'd have a hell of a lot harder time convincing EVERYONE that it must go up. Once their revenue is capped, the expense side of the balance sheet can be attacked next, and maybe the 23% can come down.

The FairTax is a bad idea unless what you are after is making the ultra rich, richer and widening the income gap. You know it is the rich who dreamed up the idea of a retail sales tax. They will pay millions less while you and I will pay more.
If you are truly wanting fair, then tax ALL income the same rate, even for the very poor and for capital gains, dividends, corporations, churches, everyone and every entity will be taxed the same on every dollar earned and also on unearned income.
Remove the mortgage deduction and charity deductions along with a host of other deductions that are basically government subsidies.

Another problem solved, now it's Miller Time.

 

[AlpineTrout]

Quote from bigarrow:

The FairTax is a bad idea unless what you are after is making the ultra rich, richer and widening the income gap. You know it is the rich who dreamed up the idea of a retail sales tax. They will pay millions less while you and I will pay more.
If you are truly wanting fair, then tax ALL income the same rate, even for the very poor and for capital gains, dividends, corporations, churches, everyone and every entity will be taxed the same on every dollar earned and also on unearned income.
Remove the mortgage deduction and charity deductions along with a host of other deductions that are basically government subsidies.

Without trying to sound pompous, your very wrong. If you truly have an open mind and do the research (not much its simple) you'll see why your wrong. I'd explain, but I have to go.

 

[MGB]

Quote from bigarrow:

The FairTax is a bad idea unless what you are after is making the ultra rich, richer and widening the income gap. You know it is the rich who dreamed up the idea of a retail sales tax. They will pay millions less while you and I will pay more.
If you are truly wanting fair, then tax ALL income the same rate, even for the very poor and for capital gains, dividends, corporations, churches, everyone and every entity will be taxed the same on every dollar earned and also on unearned income.
Remove the mortgage deduction and charity deductions along with a host of other deductions that are basically government subsidies.

Another problem solved, now it's Miller Time.

The FairTax is an excellent idea. Rich people tend to buy more stuff, buy more expensive stuff (planes, cars, houses, etc.) So, with the FairTax, rich people will actually pay more taxes, as they buy more stuff.

 

[TraderZones]

Quote from AlpineTrout:

Once their revenue is capped, the expense side of the balance sheet can be attacked next, and maybe the 23% can come down.

This thought is exactly opposite to how legislators think. I do not see how this would change anything, how it would be expected they would reduce the rate, or how it would keep them from increasing the rates.

And they certainly would never "attack the expense side." This is a fantasy.

Congress and the president have always felt free to monkey with tax rates such as cap gains, death tax or anything else. With the huge level of debt, taxes will only rise and services will suffer without costs going down.

 

[morganist]

Quote from MKTrader:

i dont no. i have trouble following all this teen texting looking stuff and run on sentences from somone who thinks they R an econ wiz after a few college classes

i find your argument self defeating. if you knew about economics you would know the baro-ricardian equivalence theory.

this relates to my next comments.

if you borrow money to increase demand at present time you have to take higher taxes in the future to pay it back with interest. therefore if poor people do not have to pay tax the wealthier people have to pay more tax in the future with interest on top.

thus is it better to increase demand at present by reducing tax for poorer people who have a higher propensity to consume. meaning less tax reduction is need to have the same increase in demand than for wealthy people.