Quote:
Originally Posted by Cheiro
A similar system as this is used in Europe. Unlike here in the US where a tax (sales and/or user) is added at point of ultimate consumer purchase, a tax is added as a good is created/manufactured, at each step along the way. From the processing of raw material, to each process as something is made a tax is added. The result is that taxes are rather "hidden" in the cost of the ultimate purchase price. Taxes of this kind are really "regressive" and hit those of low income much harder than those who are wealthy. This is why states controlled by the wealthy have sales taxes rather than income taxes. The income tax was designed to spread the burden of taxation more fairly, the more you make, the more you pay.
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Many people will always tell you how WONDERFUL the 1940s through 1960s were. Remember the golden years of America when most everyone was a member of the MIDDLE CLASS and could afford to BUY a home and that was usually with only one person working? Notice the differences today. Yes, there have been some improvements over time. but some are SOMEWHAT superficial - like giant screen televisions and cars with greater horsepower. But, has the quality of life improved.......probably NOT. And that statement is quantifiable because there are world list of qualities for different countries - like in quality of life and other important factors the US was ranked in the top 10 in the 1950s and has dropped OUT and DOWN to being about 30th worldwide TODAY.
We all read that today's modern married couple has to have BOTH people with full-time jobs to even be considered in the US middle class. And recently the news media is talking about the house shortage and how rental units have their prices jacked up. A modern couple can NOT afford the DOWN PAYMENT on a home because the lack of NEW housing starts, which has driven the down payment to be in excess of what MOST middle-class citizens can POSSIBLY save up.
So we see the problem and we see the differences between today's era and the 1950s. So what is the answer ??? what is the WHY behind this social difference? The main answer is that simply the tax rates and brackets have changed and are LESS progressive .......thus favoring the WEALTHY even in states (NOT Florida) that have an income tax. Property taxes are also set low to favor the WEALTHY - that is why the US school system and students' test scores rank around 30th on a world list. And everyone wonders why technical workers in digital fields are hard to find in the US. So, we just roll them in from India and elsewhere.