Re:Scott Adams: Tax the Comfortable
by simonsarris on Monday December 27, 2010 @01:47PM
(#2043257)
This is why I prefer the New Hampshire model of no sales tax and no income tax. Instead, a large property tax and a (small) capital gains tax are in place.
This is far from the whole story, and NH isn't perfect, but the model of these four taxes seems to hurt the poor much less.
Re:Scott Adams: Tax the Comfortable
by scottostler on Monday December 27, 2010 @04:08PM
(#2043663)
A 2006 NBER paper claimed that when taking into account a wider set of taxes (state income/sales taxes, federal/state corporate taxes, payroll taxes, etc), the US has roughly a flat 40% tax rate across all income brackets.
relevant msn article: http://articles.moneycentral.msn.com/Taxes/Advice/YourRealTa...
full paper: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.148...
In almost all 50 states, the overall tax code is regressive - the middle classes are taxed more heavily than the rich. The regressive nature of the state taxes is offset by the progressive nature of the Federal taxes.
Imagine re-doing the above scenario of 10 men in a bar, but doing it in an accurate way, where there is sales tax on those beers - then the story comes out rather differently.