Reply #14: The rich don't spend all their income, won't pay as much tax.

[FormerDittoHead]

the rich are rich BECAUSE they don't spend as much as they make.

There was a thread here on this previously (in another forum?)here and it was torn to pieces.

The fact is that it would be NOT be "simple". In fact, due to the fact that the Fed will tax things at different rates than states (starting with Delaware which has NO sales tax) the red tape will be considerable.

It STAGGERS me STILL (I hope I'm not boring you all) that ANYONE thinks a national sales tax is in anyway more "fair" and "simple" than a national property tax.

AGAIN, I paste the below from another msg for your info:

...With a national sales tax, every small business person and self employed individual will have to collect said sales tax, changing every cash register, price sheet, etc, fill out an ADDITIONAL 13 forms (minimum) a year along with making 12-13 payments to the fed for the sales tax.

This doesn't even include the mine field that business people will be walking through calculating the various taxes for items that the state charges differently than what the fed will. (NJ: unprepared food and clothing: no tax). Many business people who collect no sales tax presently (produce markets, clothing stores) would have to start.

...and let me bet you a dollar to a donut that sales of stocks and bonds won't be included in the national sale tax plan (guess who owns most of stocks and bonds?)

And don't get me started on the inevitable underground economy!

A national property tax, however, could not be more simple. Your local property tax collector would be instructed to add on a given small percentage on top of your present bill, and mail you the bill.

You don't even have to cut more than the one check you already use to pay your present taxes! Could it be more simple!???

It would involve MUCH less paperwork than an added sales tax, and it will rightly reflect the added use of our gov't resources, services and protections that the rich benefit from.

What's more... IT'S THAT MAGIC NEO-CON WORD... FLAT. The guy who owns a house worth $50,000,000 (Ken Lay) will pay 1000x that of a guy who's house is worth $50,000. (with a caveat, see point #2)

Five final points:

1) Like every state that I'm aware of, taxes on Farm land and other certain properties will be done at different rates, along with other reductions and exemptions (churches).

2) I would suggest some kind of "personal exemption" of some amount (the first $40,000 of value? Pick a number.) (additional for seniors?) for personal residences (not business property) so that someone living in a *modest* house ends up not paying anything more at all. Remember, however, your present, local property tax bill gives you no exception, so this could rightly be phased out (see point #4).

A provision could also be made for apartment buildings to prevent landlords from passing on the added expense. You could simply multiply every rented personal residence (not talking office buildings) by $40,000 and use THAT as a possible exemption for rental property taxes. Any additional amount would then have to paid by renter + landlord.

3) Every dollar of it should go to reducing income taxes. I'm not talking about INCREASING net taxes, but redistributing the proportional burden to those who receive the proportional benefit, UNLIKE income taxes or a sales tax.

4) It would have to be phased in over a number of years (like 10? 20?) but this would be very easy to do.

5) Property taxes would continue to be considered a deductable expense for business activities.

I'm creating a website to more graphically make these points, and to try to provide an alternative to the JUGGERNAUT that a national sales tax will become, and it being a sweeping bonanza to further reduce tax burdens for the rich.