News for hackers. Stuff that matters.
Re:Scott Adams: Tax the Comfortable by lkrubner on Monday December 27, 2010 @01:40PM (#2043226)
I have difficulty understanding why any discussion of taxes in the US becomes a conversation about the income tax. There are many, many taxes in the US. A rational discussion of taxes would include all of the taxes together. Most states have a sales tax, and the tax is regressive. Several states (North Carolina, Alabama and many others) make the sales tax much more regressive by putting a cap on it. I recall, when I lived in North Carolina during the 90s, the sales tax had a cap at $100. So the kind of everyday items that poor people have to buy would face the full tax, but plenty of consumer goods that the middle class bought (lots of consumer electronics, for instance) did not face the full tax since the items cost over $100. In essence, the poor were the only ones who had to the full sales tax on nearly everything they bought.

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.

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...