Figure out your 2009 taxs. All of them. Be honest. Something has gone very wrong when Gov. takes more of your money then you keep. We ahve crossed the 50% mark and people are pissed. Theres going to be a new sheriff in town folks.
1. Fed income tax.
2. State income tax
3. Property tax
4. Social sec. and FICA tax
5.Sales tax from puchases
6.Vehicle reg fees and sales tax
Cell phone fees and extra tax
security alarm fees and tax
Vehicle tax and registration fees
trading tax and fees
Gun tax and concealed hand gun tax and fees
water, electricity, gas tax
garbage collection fees
and now health care tax.
Credit card fees and penalty fees.
FART -NO TAX
You forgot Medicare tax, the new Healthcare tax (on upper incomes), Sin taxes on gambling, alcohol, cigarettes which are bound to go up, the likely introduction of a new VAT Tax, Capital Gains taxes, Inheritance taxes, Estate taxes, The likely introduction of a New Carbon Tax.
In states like CA, NJ, NY upper income earners are likely to keep less than 20 cents of each incremental dollar earned. You are going to see a massive brain drain from the worker force i.e. in business and the medical field (primary and specialist physicians). Venture Capital will dry up and small business will be laying off people, not hiring.
Wealthy individuals will withdraw from the workforce. They will live off the proceeds generated from matched selling of capital gains and losses and generate no income, or little income. It is conceivable that multimillionaires can actually keep taxable income well under $88,000 per year by living off their portfolio and controlled withdrawals from IRAs/401Ks. they will thus be eligible for the Healthcare Tax subsidy, low income housing, and various tax credits all of which are income based and not asset-based.
It will be a form of civil disobedience enacted by the rich to game the system to their advantage. In other words someone who's portfolio may be down from $10 million to $7 million, loaded w/ capital losses can live nicely for a lifetime w/o ever incurring income. If they can arrange to be severed from their job instead of just quitting, they can also draw unemployment compnsation for up to 99 months.
There should be only 1 tax: Sales tax.
If there were only a sales tax, it would be a tax on imports from other countries because nearly 100% of what we buy is from overseas.
That one change to eliminate all except the sales tax would result in an economic boom for USA becaues it would make USA competitive.
Furthermore, it would entice Americans to save a tiny bit more resulting in even more investments for R&D.
Make the sales tax as much as needed to meet whatever fed, state, local, county needs that exist for all programs including education.
In some EU countries the sales tax is 18% and, of course, they also have all the other taxes.
In USA an 18% sales tax would result in 0.00 need for real estate taxes, 0.00 need for income taxes, 0.00 need for business profits taxes.
The one reason such a change will NOT happen is the accounting industry which depends on complex tax laws for their survival.
How would it make USA competitive? I assume the sales tax would be on everything, whether it's imported or produced in this country. Also, you do realize who would be hurt the worst if sales taxes were at the 18% or higher level? You need to step back and think these things through VAT (sales taxes) is a good idea, but not as a replacement for all other taxes.