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this post was submitted on 22 Sep 2024
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The impact in this case benefits lower income people as the proceeds are distributed equally regardless of income level. Though it does feel like it couldve just been an income tax.
Supposedly. My other problem is sales on all gross receipts multiply on finished goods. as now you're charging 3% on raw materials, 3% on any intermediate goods, and 3% on final products, plus whatever % the companies are going to redirect to administer the collection of the tax... so what was a reasonable tax at first now results in a possible 9% or more increase in costs on all finished goods, which further eliminates a lot of the lower income benefit.
It would have been fine if it was a profit tax, since the point of profit taxes is to disincentivize profit hoarding and promote reinvestment/wage growth. Thats why the ridiculously high federal marginal corporate tax rates of the 50s and 60s actually worked, businesses would make more overall by keeping profits (percentage wise) low but reinvesting their excess in the business and their workers.
Of course theres a downside on profit taxes too, if implemented in this manner, they have the additional knock on effect of driving business (and higher paying jobs) away from the state and are harder/way more expensive to quantify/administer if you want to do it per product sold in the state.
I fully expect to get railed in the ass by the average Lemmy left-winger by this but I'm honestly not voting for it.