Talk of The Villages Florida - View Single Post - Income Tax
Thread: Income Tax
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Old 04-13-2010, 04:24 PM
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Default Good Idea

Quote:
Originally Posted by spk7951 View Post
But why do we need to raise taxes if 47% are not paying taxes? Why not just change the tax laws so that EVERYONE pays taxes to some degree?
Good idea. Personally, I think a VAT would raise the most revenue, be less noticed than a change in the personal tax rates, and would wind up targeting exactly that segment of the population who is paying so little and benefitting so greatly from government programs.

A VAT tax is a consumption tax and is a definite shift away from the progressive taxation system we have now (lower income earners pay a smaller percentage of their incomes in taxes than higher income earners).

The liberals will argue that a consumption tax places an unfair and disproportionate burden on the lower income classes because a much greater proportion of their income is spent on consumables than the higher income classes. Frankly, I don't know what position the conservative right would take, other than maybe no tax is any good. (Remember, candidates of both parties are pandering for the votes of the lower classes.)

But one thing is for sure according to my analysis--tax revenues are going to have to be increased substantially.