Yeah, so you completely missed the point. A sales tax is based on consumption rates. People with more money will consume more and pay a higher tax which is appropriate because it’s proportional to not only their income but also they’re spending power. This brings us to our next point a person spending power doesn’t have anything to do with their earned income at least in the United States. If you were born rich and you never worked a day in your life you would never pay an income tax you would pay a nominal 15% capital gains tax on the trust fund that your parents set up for you and then keeping sales taxes low and property taxes low basically just subsidizes you.
Because it’s the greater way for the government to get money.
I’ll give my country example. 2023.
State tax income was 270.000 million euros.
Out of those 120.000 million were labor income tax.
Business tax was 35.000 million
Sales tax were 80.000 million.
The rest were other taxes.
Work is easy to tax, and more fair.
Sale tax is 21% to everyone. Labor tax depends on your income. The more your income the more you pay, so it’s proportional.
Removing all labor tax for sale tax would be highly unfair to people with low income.
I’m more on the opposite route. Sale tax should be lower and income tax higher.
DrFistington@lemmy.world 16 hours ago
daniskarma@lemmy.dbzer0.com 6 hours ago
So increase capital gain tax. And run a net worth tax.
ripcord@lemmy.world 23 hours ago
…what about capital gains tax?
daniskarma@lemmy.dbzer0.com 20 hours ago
Taxed from 19% to 21% depending on quantity.
The reality is that not enough people have a significant amount of capital gains. My country only have 30 people with over a billion euro. For contrast USA have 900. I think here only one million people have over one million euros in total net worth.
The truth is that it’s not rational to pretend that society get sustained only taxing capital gains, even if they were taxed 100%.
I’m all for augmenting capital tax, mostly because I don’t think there should be billionaires at all. But I do not think their disappear would make my taxes significantly lower. At the end of the day they are very few.