Your solutions to tax reform?

[searchme]

*wait and see if this thread flops*

[Solfa]

This isn't the topic for a Kpop forum but what the hell.

 

Most economists say get rid of the income tax and make it a consumption tax instead. The more frivolous the lifestyle, the more you get taxed. This effectively protects the poor and taxes the rich more than others. It also fixes the issue of taxing people not companies, because when you tax companies, it's the workers who feel it the most not the people who are at the top of it. Also, it helps people save more, one of the many issues that's plagues the millenials. It also means people don't have to hide after overseas bank account, you will get taxed only for what you consume. And it will help the economy and makes social mobility easier.

 

The downside is that the price of goods and services will rise, but on the other hand, it's much more affordable than income tax.

[searchme]

This isn't the topic for a Kpop forum but what the hell.

 

Most economists say get rid of the income tax and make it a consumption tax instead. The more frivolous the lifestyle, the more you get taxed. This effectively protects the poor and taxes the rich more than others. It also fixes the issue of taxing people not companies, because when you tax companies, it's the workers who feel it the most not the people who are at the top of it. Also, it helps people save more, one of the many issues that's plagues the millenials. It also means people don't have to hide after overseas bank account, you will get taxed only for what you consume. And it will help the economy and makes social mobility easier.

 

The downside is that the price of goods and services will rise, but on the other hand, it's much more affordable than income tax.

I know it isn't forum appropriate but I wanted to know if my forum energies are misdirected.

 

Wait. Don't we already Tax for consumption? Does consumption taxes take inflation into consideration.

 

 

Sent from my She'z cellphones using an impactful comeback.

[Solfa]

I know it isn't forum appropriate but I wanted to know if my forum energies are misdirected.

Wait. Don't we already Tax for consumption? Does consumption taxes take inflation into consideration.

Sent from my She'z cellphones using an impactful comeback.

1) No in the US, yes in the EU. A consumption tax is different from a sales tax, that's probably what you are thinking of.

 

2) As for the other question, this explains it better https://www.forbes.com/sites/timworstall/2014/03/18/bill-gates-points-to-the-best-tax-system-the-progressive-consumption-tax/#3fc99eb72fc9 Basically, it needs to be implemented veeeery carefully to be progressive. Consumption tax has to be as a complete subsititue of the income tax, not in addition to it. Otherwise, forget all those perks it's supposed to bring.