Posted on Jan 10, 2023
How would a National Consumption Tax be better than an Income Tax?
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Lower income people currently have certain tax breaks to alleviate their financial burden. However, lower income people spend a larger percentage of their income on necessities, so their tax rate would effectively increase.
In order to save on taxes, most people are likely to save more of their money, which is good but it would mean less in taxes to support the government. State and local governments rely on Federal money to pay for infrastructure, so would need to raise taxes. This happens whenever the Federal government cuts taxes so it’s not really a tax cut, it’s a tax shift.
https://www.msn.com/en-us/news/politics/house-republicans-to-vote-on-bill-abolishing-irs-eliminating-income-tax/ar-AA16aGqW?ocid=msedgntp&cvid=6edf4a56f84346249ac3559778f6cb20
In order to save on taxes, most people are likely to save more of their money, which is good but it would mean less in taxes to support the government. State and local governments rely on Federal money to pay for infrastructure, so would need to raise taxes. This happens whenever the Federal government cuts taxes so it’s not really a tax cut, it’s a tax shift.
https://www.msn.com/en-us/news/politics/house-republicans-to-vote-on-bill-abolishing-irs-eliminating-income-tax/ar-AA16aGqW?ocid=msedgntp&cvid=6edf4a56f84346249ac3559778f6cb20
Posted 2 y ago
Responses: 29
Flat consumption tax places the burden equally on all. Also, most of the consumption tax plans I understand eliminate basics such as food and clothing from the tax. This easing the burden on those who cannot afford such changes. But ultimately every single American should feel the effect when our politicians increase or decrease taxes.
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Maj Kevin "Mac" McLaughlin
A1C Medrick "Rick" DeVaney - I agree. I like the idea of reducing the need for the IRS, tax forms every April, and in doing so reduce government spending. I also get that this may feel like a dis-service to the poor/lower class, but I don't really think it is. Again, there are provisions to reduce their tax burden on the thing required to live. Ultimately, a national sales tax also could bring more revenue sources into the mix. Not only are currently paying citizens paying into the system we also could conceivably collects from foreign sources, illegal immigrants, tourists, business travelers, etc.
But ultimately, I also want everyone to feel the changes when taxes go up or down. Not simply because you managed to get into a higher/lower tax bracket, but because Congress decided to increase/decrease taxes/spending. This country started through a revolution based in part because citizens were being taxed without representation in the British government. Today, people of a certain class level and higher carry all of the burden in taxes and it's getting worse What happens when 47% not effectively paying taxes goes up to 50%? 75%? Regardless of whether I'd find myself on the side of not paying taxes, I still do not think this is how a tax system should work. It is the reason why there is an us vs them mentality in this country. Already I've had a poster imply that simply because I am an officer, I don't care. What some do not realize in my opinion is that the current tax system is specifically built to divide and every time that 47% of those not paying taxes goes up, fewer people want the system to change when they're among them. And it doesn't end as more rhetoric for the rich to pay "their share" continues which ultimately leads to that 47% number going up and the rich getting taxed more (making it harder to become "rich") until they are effectively the only ones paying into the system. I don't know about anyone else, but I think it is a responsibility for us all to take part in paying taxes and I would not like the idea of allowing others to pay taxes for me.
But ultimately, I also want everyone to feel the changes when taxes go up or down. Not simply because you managed to get into a higher/lower tax bracket, but because Congress decided to increase/decrease taxes/spending. This country started through a revolution based in part because citizens were being taxed without representation in the British government. Today, people of a certain class level and higher carry all of the burden in taxes and it's getting worse What happens when 47% not effectively paying taxes goes up to 50%? 75%? Regardless of whether I'd find myself on the side of not paying taxes, I still do not think this is how a tax system should work. It is the reason why there is an us vs them mentality in this country. Already I've had a poster imply that simply because I am an officer, I don't care. What some do not realize in my opinion is that the current tax system is specifically built to divide and every time that 47% of those not paying taxes goes up, fewer people want the system to change when they're among them. And it doesn't end as more rhetoric for the rich to pay "their share" continues which ultimately leads to that 47% number going up and the rich getting taxed more (making it harder to become "rich") until they are effectively the only ones paying into the system. I don't know about anyone else, but I think it is a responsibility for us all to take part in paying taxes and I would not like the idea of allowing others to pay taxes for me.
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A1C Medrick "Rick" DeVaney
FINALLY.....Someone Who Has Their Sh*t Together!!
Few Understand The We NEED Wealthy People.
They're The Ones Whom Create Businesses And Employment Which Pays Well
And Keep Our Economy Rolling.
At No Point In MY Life Has Any Poor Person Ever Offered Me Employment Of Any Type...... And The Term "RICH" Depends Upon How Much WE Have When We Compare Ourselves With Others....IF I Understood Correctly; On Average, A "Rich" Person Is Considered To Be Anyone Whom Makes $20,000 Per Year More Than The Other., Regardless Of Their Earnings...
People HEAR That The Wealthy Don't Pay Their Fair Share, But They Have No Idea How Much It SHOULD Be.
In Addition, Regardless Of What People THINK, The Wealthy DO Pay Taxes & Far More Than Our Average Citizen, In Dollar Amounts Of Course
But As I Mentioned Previously, I Doubt Much Will Change. Public Employees On All Levels Seem To Be In Fear Of Making Changes Because If The Alteration Doesn't Work Immediately, They May Lose Their Career Over Their Decisions....
Therefore, It's Better To Do Absolutely NOTHING.....
So That's What's Done....NOTHING....Careers Are Saved That Way
Having Been Employed By Our School, I've Seen It In Action There.
A Problem Crops Up, And Rather Than Trying To Solve The Issue,They All Run For Cover!
Nobody Want To Make A Decision.
Ever Notice What's Stated In The News When They're Asked A Question?
"We Can't Comment On That As There May Be Legal Actions". Etc..
That's No More Than Another Way Of Dodging Questions;..
They're Hoping, If It's Ignored Long Enough, It'll Just Go Away; AND Unfortunately,
Much Of The Time,They Get Away With it. I've Watched Them In Action A Few Times....It's "Duck & Dive,Then 'Chuck & Jive,' But Don't Get Involved." Another Reason Our Education In This Country Is So Poor.. And It Really IS !
~~ Consider This: Regarding K-12...~~
"Once We've Complete The 6th GRADE, What Will We Be Taught During The Following
6 YEARS, Which We'll Actually Use In Our Lives, Or Even In Helping With Our Employment Or Careers"?.. Scary, Huh..? But It IS The Absolute TRUTH"..,
NOTHING ~ ZERO ~ Not A Single Thing.. Just 6 More Years Of Wasted Time And Money.
BTW: I'm A Middle School DROP OUT. Walked Out Mid 9th Grade; Then Upon On My 17th Birthday I Enlisted In The USAF And Took Advantage Of ALL The Educational Programs
I Could Cram Into My 4 Year Enlistment.....
2 Of My BEST Life's Decisions Were: ...
#1.. QUIT SCHOOL, ..A Waste Of My Time; So I Took A Hike...
#2.. Enlist In The USAF....... "YES" Thank You God !!
Best Decision Ever.... I Received A Terrific Education; Then Eventually I Retired At 56.
Few Understand The We NEED Wealthy People.
They're The Ones Whom Create Businesses And Employment Which Pays Well
And Keep Our Economy Rolling.
At No Point In MY Life Has Any Poor Person Ever Offered Me Employment Of Any Type...... And The Term "RICH" Depends Upon How Much WE Have When We Compare Ourselves With Others....IF I Understood Correctly; On Average, A "Rich" Person Is Considered To Be Anyone Whom Makes $20,000 Per Year More Than The Other., Regardless Of Their Earnings...
People HEAR That The Wealthy Don't Pay Their Fair Share, But They Have No Idea How Much It SHOULD Be.
In Addition, Regardless Of What People THINK, The Wealthy DO Pay Taxes & Far More Than Our Average Citizen, In Dollar Amounts Of Course
But As I Mentioned Previously, I Doubt Much Will Change. Public Employees On All Levels Seem To Be In Fear Of Making Changes Because If The Alteration Doesn't Work Immediately, They May Lose Their Career Over Their Decisions....
Therefore, It's Better To Do Absolutely NOTHING.....
So That's What's Done....NOTHING....Careers Are Saved That Way
Having Been Employed By Our School, I've Seen It In Action There.
A Problem Crops Up, And Rather Than Trying To Solve The Issue,They All Run For Cover!
Nobody Want To Make A Decision.
Ever Notice What's Stated In The News When They're Asked A Question?
"We Can't Comment On That As There May Be Legal Actions". Etc..
That's No More Than Another Way Of Dodging Questions;..
They're Hoping, If It's Ignored Long Enough, It'll Just Go Away; AND Unfortunately,
Much Of The Time,They Get Away With it. I've Watched Them In Action A Few Times....It's "Duck & Dive,Then 'Chuck & Jive,' But Don't Get Involved." Another Reason Our Education In This Country Is So Poor.. And It Really IS !
~~ Consider This: Regarding K-12...~~
"Once We've Complete The 6th GRADE, What Will We Be Taught During The Following
6 YEARS, Which We'll Actually Use In Our Lives, Or Even In Helping With Our Employment Or Careers"?.. Scary, Huh..? But It IS The Absolute TRUTH"..,
NOTHING ~ ZERO ~ Not A Single Thing.. Just 6 More Years Of Wasted Time And Money.
BTW: I'm A Middle School DROP OUT. Walked Out Mid 9th Grade; Then Upon On My 17th Birthday I Enlisted In The USAF And Took Advantage Of ALL The Educational Programs
I Could Cram Into My 4 Year Enlistment.....
2 Of My BEST Life's Decisions Were: ...
#1.. QUIT SCHOOL, ..A Waste Of My Time; So I Took A Hike...
#2.. Enlist In The USAF....... "YES" Thank You God !!
Best Decision Ever.... I Received A Terrific Education; Then Eventually I Retired At 56.
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Maj Kevin "Mac" McLaughlin
While we can all sit here and agree that some people out there have it good and some probably don't deserve it, I would never say I have anything against those who are rich, or richer than me. There are many types of rich too. Some can live on a very modest salary, but have a richness in their friends, family, job etc. I am by no mean rich, but I would imagine some would say that I am. My question to them is, how does that matter to them? Did I take something from them to get where I am? Did I do something unethical or illegal? Those are the only things that should matter. Otherwise, it's no one else's business.
As for education, you and I will have to disagree somewhat. Obviously, we have had different experiences in life, and it is a shame grade school was not taking care of you. I would think that would be an indicator of your school and its teachers more so than the entire US education system. I will also concede there are a lot of schools moving to or which already have similar issues. This is one of the reasons I invested in my own kids by choosing to go private. Did that come at a cost? Sure, but you'd be surprised how affordable it can be for parents with limited finances. In the end, I believe my kids will be more prepared for college and ultimately employment than most others. My own education was constantly disrupted with moving from one country to another before returning to the US for my last two years in High School. I wasn't the best of students, but I managed to go to a decent college. It was there I started looking at where my life would lead. I wanted to join the Air Force, become a pilot, and live the glory I saw in movies like Top Gun. But I also wanted to play it smart by choosing Computer Science (something I knew NOTHING about) as my major. Let's just say it was HARD for me, I struggled, and ultimately it helped ensure I would not be a pilot as my grades were not competitive enough against the 4.0s who ultimately got the slots in a rough year for pilots. But I got a commission and eventually found my niche in life and the Air Force. In the end, that degree has ultimately paid off very well.
That's the thing... Education I think is very important, and it should never stop when we leave school (as even you have noted), but I also think resilience and having aspirations is important too. That was obviously effective for you. You found a way through the Air Force to learn, become better, and make something of yourself. You didn't just sit there and wallow in your own self-pity and accept what life initially threw at you. That self-pity if what I see out of most people who point at the rich for their own problems, not finding ways to lift themselves up to where they would like to be. I didn't get to be an Air Force pilot, but I did have a great career in the Air Force. I also found a way to earn a great living in cyber, both in the Air Force and beyond. Life choices, resilience, and aspirations all contribute to success (among other things).
As for education, you and I will have to disagree somewhat. Obviously, we have had different experiences in life, and it is a shame grade school was not taking care of you. I would think that would be an indicator of your school and its teachers more so than the entire US education system. I will also concede there are a lot of schools moving to or which already have similar issues. This is one of the reasons I invested in my own kids by choosing to go private. Did that come at a cost? Sure, but you'd be surprised how affordable it can be for parents with limited finances. In the end, I believe my kids will be more prepared for college and ultimately employment than most others. My own education was constantly disrupted with moving from one country to another before returning to the US for my last two years in High School. I wasn't the best of students, but I managed to go to a decent college. It was there I started looking at where my life would lead. I wanted to join the Air Force, become a pilot, and live the glory I saw in movies like Top Gun. But I also wanted to play it smart by choosing Computer Science (something I knew NOTHING about) as my major. Let's just say it was HARD for me, I struggled, and ultimately it helped ensure I would not be a pilot as my grades were not competitive enough against the 4.0s who ultimately got the slots in a rough year for pilots. But I got a commission and eventually found my niche in life and the Air Force. In the end, that degree has ultimately paid off very well.
That's the thing... Education I think is very important, and it should never stop when we leave school (as even you have noted), but I also think resilience and having aspirations is important too. That was obviously effective for you. You found a way through the Air Force to learn, become better, and make something of yourself. You didn't just sit there and wallow in your own self-pity and accept what life initially threw at you. That self-pity if what I see out of most people who point at the rich for their own problems, not finding ways to lift themselves up to where they would like to be. I didn't get to be an Air Force pilot, but I did have a great career in the Air Force. I also found a way to earn a great living in cyber, both in the Air Force and beyond. Life choices, resilience, and aspirations all contribute to success (among other things).
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A1C Medrick "Rick" DeVaney
Maj Kevin "Mac" McLaughlin - ./......
Perhaps YOU May Not Think They Deserved It,
But They DO Have It Anyway......
And It's There's To Do With As THEY Please,
Not As YOU May Wish ~
Same As You Do With Your Money
As BILL GATES Is Credited To Have Said, And It's TRUE:
"Life ISN'T Fair. Get Use To It" !
Perhaps YOU May Not Think They Deserved It,
But They DO Have It Anyway......
And It's There's To Do With As THEY Please,
Not As YOU May Wish ~
Same As You Do With Your Money
As BILL GATES Is Credited To Have Said, And It's TRUE:
"Life ISN'T Fair. Get Use To It" !
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I think a national tax is a good thing because everybody will have to pull their weight. Moreover, middle American small business will thrive due to less red tape which will enhance wages and innovation. Maybe I'm off base here but I don't think it's right for people to get huge credits while others have to pay more simply because of their hard earned wage totals.
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A1C Medrick "Rick" DeVaney
PO1 Mark Floyd - ....
Nobody Wants To Pay More Taxes Than They Have To; New Tax Old Tax, It's All Money Out Of Our Pocket That We'd Prefer Using For Other Things....Nothing New About That.
If The States Don't Collect The Taxes, Who'd You Suggest Do It?......Does It Really Make Any Difference?....So Little Barter Has EVER Been Used To Make Any Difference At All. It;s Almost A Non-Issue...Obviously I'm Either Not Understanding What You're Saying Or What Affect You Think These Events Will Have; But Any Way We Approach It, We ARE Going To Pay Taxes.
Nobody Wants To Pay More Taxes Than They Have To; New Tax Old Tax, It's All Money Out Of Our Pocket That We'd Prefer Using For Other Things....Nothing New About That.
If The States Don't Collect The Taxes, Who'd You Suggest Do It?......Does It Really Make Any Difference?....So Little Barter Has EVER Been Used To Make Any Difference At All. It;s Almost A Non-Issue...Obviously I'm Either Not Understanding What You're Saying Or What Affect You Think These Events Will Have; But Any Way We Approach It, We ARE Going To Pay Taxes.
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PO1 Mark Floyd
I suggest they leave well enough alone. The topic is about a National Sales Tax correct? If the states HAVE to do it then they should be PAID to do it was the point. I further suggest.....CUT SPENDING FIRST. How it affects me as a person on fixed income? It is a stupid plan and will negatively affect me and others as well as those in the lower income brackets.
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A1C Medrick "Rick" DeVaney
PO1 Mark Floyd - ......Bill Clinton Had The Situation With The National Debt Well Taken Care Of. He Not Only Had It Balanced, But With Money To Spare. But Politicians Are Expensive, So Much For Controlled Spending...!!
BTW, Congratulations. ~ You Avoided Every One Of My Questions.... Ever Consider Running For President?
LOL... Just Putting You On, But It IS True...
WTF, Why Not?
Trump Managed It,
And He' Even Put Lying Into The Class Of An Olympic Sport !
BTW, Congratulations. ~ You Avoided Every One Of My Questions.... Ever Consider Running For President?
LOL... Just Putting You On, But It IS True...
WTF, Why Not?
Trump Managed It,
And He' Even Put Lying Into The Class Of An Olympic Sport !
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PO1 Mark Floyd
A1C Medrick "Rick" DeVaney - ROTFLMAO...the PRESIDENT doesn't appropriate money the Congress does. And it was the Republicans in Congress that reined in the spending during the Clinton Administration.
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For more info on the National Sales Tax. Another good point to add beyond the link is that not just Americans pay into it. Immigrants, tourists, illegal immigrants even all support the system.
https://www.forbes.com/sites/davidmarotta/2013/02/11/is-a-national-sales-tax-really-fair/?sh=528b260a1790
https://www.forbes.com/sites/davidmarotta/2013/02/11/is-a-national-sales-tax-really-fair/?sh=528b260a1790
Is a National Sales Tax Really Fair?
A progressive income tax threatens our liberty and prosperity. It punishes the productive by taxing them the highest amounts, reduces employment by increasing the cost of employees and reveals our personal finances and thus invades our privacy. A popular suggestion is to eliminate the income tax and replace it with a [...]
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PO2 Patrick Dwyer
Hopefully, the national tax includes taxing the value of active duty housing, Subsistence, Hazardous duty pay and other compensation received . BAQ, BAS, Moving expenses, Sub Pay, Sea Pay, Special Duty Assignment pay, etc is where I made my money.... Tax it all, but do not touch US Congress housing, travel, per diem or any other compensation. Definitely tax all Military retirement pay, including Disability, any and all Medical cost covered by VA or other medical practice. Isreal, Afghanistan and Pakistan needs this money, so since the military makes their money off war.... Tax every penny spent. Maybe we could invade Detroit, West Virginia and bulid roads, schools, etc. But, don't tax Congress since as Millionaires they earned their money honestly(No killing or bombing by them) and work a helluva lot harder than you have to keep their incomes.....
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Maj Kevin "Mac" McLaughlin
I gather you're attempting to be sarcastic here. But let's break it down...
BAS/BAQ - Is already addressed in which food, clothing, and possibly housing would have an exception in a National Sales tax.
Moving expenses - This would be a reimbursable expense, including the taxes incurred.
Special pay - is not taxed upon receiving it, what you do with it may incur a tax.
Congressional members - National Sales Tax would likely incur more taxes on them than the average citizen.
Retirement Pay - Is already taxed with the exception for some when factoring in VA (which is tax free). VA Medical care would not be taxed.
The rest of your rant is nonsensical. Some of the rich certainly did not earn their money, I would argue most did. Similar things can be said about the poor in that some are poor simply because they do nothing to advance their careers/income. It also makes no sense to say "work harder to keep income" (paraphrased)... Keeping your income is easy under a national sales tax if you choose not to spend all of it. When you do spend it, you pay the tax (with some exceptions). Investing also becomes more attractive as you have more of your income available, without the pre-income tax charges.
BAS/BAQ - Is already addressed in which food, clothing, and possibly housing would have an exception in a National Sales tax.
Moving expenses - This would be a reimbursable expense, including the taxes incurred.
Special pay - is not taxed upon receiving it, what you do with it may incur a tax.
Congressional members - National Sales Tax would likely incur more taxes on them than the average citizen.
Retirement Pay - Is already taxed with the exception for some when factoring in VA (which is tax free). VA Medical care would not be taxed.
The rest of your rant is nonsensical. Some of the rich certainly did not earn their money, I would argue most did. Similar things can be said about the poor in that some are poor simply because they do nothing to advance their careers/income. It also makes no sense to say "work harder to keep income" (paraphrased)... Keeping your income is easy under a national sales tax if you choose not to spend all of it. When you do spend it, you pay the tax (with some exceptions). Investing also becomes more attractive as you have more of your income available, without the pre-income tax charges.
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PO2 Patrick Dwyer
Maj Kevin "Mac" McLaughlin - Congress has plenty of "Skin in the Game" Financially. Without Congress we would destitute.... If not millionaire when they enter office, they leave office as millionaires. Before 1947 Each state determined what to pay their Senators and Congressional reps. It was called Civil Service Reform Act. Congress put themselves on the federal payroll. Congress has changed military retirement so that active duty coming on-board today have to contribute to a 401 type plan... I'm not kidding: "The military has two retirement systems: The new Blended Retirement System (BRS) The legacy High-3 system Which plan you fall under depends on when you joined the military and whether you chose to opt-in to the BRS. The military has two retirement systems:The new Blended Retirement System (BRS) and
The legacy High-3 system. Which plan you fall under depends on when you joined the military and whether you chose to opt-in to the BRS. The Blended Retirement System went into effect on January 1, 2018. It includes: Matching Thrift Savings Plan contributions. Mid-career retention bonuses. A monthly annuity for life after 20 years of service. The annuity is based on a calculation of 2% per year served. The legacy retirement annuity is based on 2 ½% per year served....". https://www.usa.gov/military-pay
The legacy High-3 system. Which plan you fall under depends on when you joined the military and whether you chose to opt-in to the BRS. The Blended Retirement System went into effect on January 1, 2018. It includes: Matching Thrift Savings Plan contributions. Mid-career retention bonuses. A monthly annuity for life after 20 years of service. The annuity is based on a calculation of 2% per year served. The legacy retirement annuity is based on 2 ½% per year served....". https://www.usa.gov/military-pay
Military Pay and Pensions | USAGov
Find information on basic pay, pensions, and retirement benefits for service members, veterans, and military retirees, including whom to contact with questions and concerns.
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Maj Kevin "Mac" McLaughlin
Look, I get it when it comes to those in office, and I want term limits and limitations to investing when they take office. But the way, we tax them hardly affects what they're able to do now.
The newer military retirement system was applied (after I retired, thank God) to facilitate those who do not make careers in the military, so that they are left with something in the end. I prefer what I have now, but if I had invested well from the beginning with the new system, I imagine I could have made out better. Regardless, I don't see how this has anything to do with how we are taxed. Either way, retirement pay is taxed with the exception of VA benefits. A national sales tax however, enables you to potentially apply more into investing.
The newer military retirement system was applied (after I retired, thank God) to facilitate those who do not make careers in the military, so that they are left with something in the end. I prefer what I have now, but if I had invested well from the beginning with the new system, I imagine I could have made out better. Regardless, I don't see how this has anything to do with how we are taxed. Either way, retirement pay is taxed with the exception of VA benefits. A national sales tax however, enables you to potentially apply more into investing.
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