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  1. #1
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    A question regarding taxes

    Why is it that every taxable purchase made in a city or state with sales tax is taxed at the same rate? Why shouldnt the tax rate be lower as you make bigger purchases? so lets say in pa I buy a tv set that cost 1000 bucks, I pay six percent or 60 bucks in tax. I then go buy an f150 that cost fifty grand, and pay the same rate, six percent, why is that fair? why am i paying three grand in sales tax for that?

  2. #2
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    Dec 2005
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    Probably because the words tax and lower are mutualy exclusive to most pols.

    Even if they did what you suggest they would just have to figure out another way to get it from us any way.

    And I guess if you can afford to buy more expensive stuff then you should be able to afford paying more tax as well.

  3. #3
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    what I am getting at is, why should I pay the same tax rate as some poor schmuck buying cheaper goods. He should pay more right?

  4. #4
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    I'm not sure if I understand what you are getting at but I will try.

    But here is an apples for apples analogy that might help my point.

    If you buy a car for twenty thousand and pay six percent tax that would be twelve hundred.
    If someone else bought a car for forty thousand he would pay twenty four hundred in sales tax. I think that if you can afford the more expensive car or whatever its fair that you should pay the tax as well.

    Now its a different debate if they are adding a luxury tax but if its the same six percent or whatever the tax is, I think its fair.

  5. #5
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    This was an attempt to look at taxes in general and open discussion as to "what is fair". should there be different rates for larger purchases or is a flat tax the way to go? is a straight percentage best or should it be progressive as costs get higher?

  6. #6
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    Quote Originally Posted by flange View Post
    This was an attempt to look at taxes in general and open discussion as to "what is fair". should there be different rates for larger purchases or is a flat tax the way to go? is a straight percentage best or should it be progressive as costs get higher?
    I don't see a flat tax working on sales tax, no way! If you spend 50k on a truck, someone else may spend 2k. How can you arrive at a flat tax?
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  7. #7
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    A flat tax is a percentage rate, not a dollar amount. I think a flat sales tax is fine. The more you spend, the more you pay in taxes. Why complicate things?
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  8. #8
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    flange, I like what you're saying, but take it a step further...

    On the same truck, you also have a tire tax, the fuel you squirt into the tank has specific and expensive fuel tax, you pay sales tax at time of purchase, there is state registration, and anything you buy for that truck as far as maintenance or modification is taxed also, you could say that, for the government anyway, that truck is a cash cow.....

    On another note, why is my house taxed, but I can write off the interest I pay?

    That seems lame to me, so basically, If I pay it off, I am taking it in the shorts over the long run...Taxes are engineered to bend you over....

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  9. #9
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    I am trying to justify in my own mind why a flat tax is great for sales, but terrible for income. I get thinking about it and confuse myself. I know its all about the rich having lobbyist and buddies passing silly tax laws, but what we might need is some way to change the system as it is. right now, things suck, its near impossible for even trained pros to interpret the tax code, and we are losing the battle. I think somehow, somewhere there are probably twenty guys controlling us, we just dont know it. middle class just takes beating after beating. isnt this sh** why we went to war with england in the first place?

  10. #10
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    Quote Originally Posted by flange View Post
    I am trying to justify in my own mind why a flat tax is great for sales, but terrible for income. I get thinking about it and confuse myself. I know its all about the rich having lobbyist and buddies passing silly tax laws, but what we might need is some way to change the system as it is. right now, things suck, its near impossible for even trained pros to interpret the tax code, and we are losing the battle. I think somehow, somewhere there are probably twenty guys controlling us, we just dont know it. middle class just takes beating after beating. isnt this sh** why we went to war with england in the first place?
    The "flat tax" on income is typically a "flat % rate". This is usually associated with Steve Forbes, he was suggesting 17% with a really big standard deduction. I would call his deductible a "living wage", I think it was something like 18k or in that range.

    Your OP suggested a degrading graduated tax on sales tax, whereas we have a inclined graduated income tax now. The mathematical difference is night and day, no connection at all that I can see.

    Your TV costs more than twice what mine cost, why should I pay as much taxes as you did?
    Last edited by Tool-Slinger; 03-14-2011 at 12:59 AM. Reason: spelzing
    "You boys are really making this thing harder than it has to be". Me

    "Who ARE you people? And WHAT are you doing in my SWAMP!?" Shrek

    Service calls submitted after 3PM will be posted the next business day.

    I give free estimates [Wild Ass Guesses] over the phone.

    "I am sorry for interrupting, please continue with your quarreling" Some chick on TV

  11. #11
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    I don't think either tax is fair. Where does the money go? How much of it is wasted? Did the government provide the six percent worth of service? probably not. Even if they spend 30% on, say, roads. Does 1 million dollars of government spending on roads produce the same amount/quality of roads as if a private company were to spend a million to build roads? Probably not anywhere close.

    But since this topic isn't about whether the taxes are too high, but whether they are proportionally fair, if you want to look at where the tax relief should be, should it be a higher percentage on a lower price car or a lower percentage? Or to look at it another way, should poor people be taxed more or less than wealthy people? I tend to think a flat tax seems more fair than either alternative. But I would lean towards lower taxes for lower incomes or at least for very low incomes. I know it is sales tax, not income, but still, the lower income citizens are the ones that would suffer the most. If you can't afford a mazerotti I don't feel bad for you. If you can't afford food, I do.

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