coldfish wrote:McBulls wrote:I agree with Coldfish that the VAT taxes imposed on our exports by most of our trading partners are unfair and costly to US workers. The solution seems obvious: pass our own 18% VAT.
The problem is that VAT tax is inherently regressive and is paid primarily by consumers. If you spend 100% of your income on consumer staples, you pay a bigger fraction than the millionaire who spends his money on offshore golf courses, summer homes and sailboats and saves the rest. It's not clear to me how it can be made more fair. Perhaps the proceeds could be earmarked to pay for public health and education, which are services for the poor and working classes that are currently supported with payroll taxes and, to some extent, sales taxes, which are also regressive. On the other hand, as recent news related to Trump's tax paying behavior illustrate, income taxes seem to be pretty regressive as well, thanks to loopholes provided by bribed legislators and heavily renumerated tax lawyers who help multimillionaires drive through them.
I'd like the issue of VAT taxes and the apparent regressive nature of our income, property and estate taxes to be addressed in the next town hall debate between the candidates. I don't have high hopes that we will get responsive answers, but it would be nice if the issues were at least raised. Candidates should be pressed to show how they plan to get themselves and their rich patrons to pay their fair share of taxes. I expect smoke and mirrors in response, but maybe the heat on the topic would do some good.
+1.
See my post above. Replace social security tax (which is regressive itself) with a national sales tax. Problem solved. Unlike now, the sale of chinese goods would contribute to our social safety net.
Edit add:
I would go so far as to replace social security and all welfare programs with a guaranteed minimum income for all citizens.
Agree on the Basic Income in lieu of welfare and S and I'm a strong fiscal conservative. Your previous posts about automation and the resulting lack of full employment rendering existing economic systems obsolete are spot on in my opinion. Donald's capitalism will lead to more wealth concentration but HRC's commie socialist stuff reminds me of Venezuelan economics.
