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submitted 5 months ago by throws_lemy@lemmy.nz to c/news@lemmy.world
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[-] PugJesus@kbin.social 119 points 5 months ago

Because right-wing propagandists have convinced morons that sales taxes hurt OTHER people, while income taxes hurt THEM.

I fucking hate these idiots.

[-] Forester@yiffit.net 13 points 5 months ago* (last edited 5 months ago)

Note the fair tax has specific measures in place to stop this type of exploitation by creating sales tax exemptions for all necessary goods and services. (Food meds gas ECT) and that was supposed to be offset by heavier taxs on luxuries and no exemption for businesses buying essentials. Republicans seem to have as usual. Cut the good part and enshitified what was supposed to be a more equitable result.

[-] orclev@lemmy.world 21 points 5 months ago

Republicans, or more specifically their wealthy puppet masters love taxes on the poor. That's because while individuals might avoid doing business with them, you can't avoid paying your taxes, and once the money is in the hands of the government they have all kinds of tricks to funnel it into their own pockets. Additionally it keeps the poor poor which makes them easier to exploit and turn into wage slaves that are so desperate for a job that they'll put up with horrible working conditions. Lastly poor people have fewer opportunities for education which limits their job prospects and as a bonus makes them easier to manipulate using propaganda.

As long as they don't have to pay it, they'll gladly support taxes levied on other people, but the moment you ask them to pay a single cent in taxes they'll bitch and moan about it.

[-] TigrisMorte@kbin.social 7 points 5 months ago

"You are Poor because you are bad and God Hates you for your badness." - GQP

[-] TigrisMorte@kbin.social 8 points 5 months ago

Sales Tax is inherently regressive. And is much easier to remove the deductions and exemptions from than an Income Tax.

[-] MNByChoice@midwest.social 66 points 5 months ago

The least regressive jurisdictions are DC, Minnesota, Vermont, New York and California.

[-] FlyingSquid@lemmy.world 26 points 5 months ago

Note that those are also generally desirable places to live, so rich people live there anyway, making the whole 'they'll just move if taxes are high' argument bullshit.

[-] nbafantest@lemmy.world 10 points 5 months ago

It's crazy how fast the California tax rate scales as you make more. The difference between like 50k, 100k, 150k and 200k alone is wild. Each step the rate scales so fast

[-] MNByChoice@midwest.social 6 points 5 months ago

It is wild that California has 5 steps to $66,295. After that the groupings are huge. Very interesting.

[-] nbafantest@lemmy.world 2 points 5 months ago

Yeah the tax rate scales up so fast

[-] TigrisMorte@kbin.social -1 points 5 months ago

Translation: "WAAAHHHH I'm only making 35K more!!!!!"

[-] nbafantest@lemmy.world 2 points 5 months ago

Taxes are not free of side effects

[-] TigrisMorte@kbin.social 5 points 5 months ago

True. Those side effects being things like Health Care, Roads, Schools, First Responders, etc...

[-] Cuberoot@lemmynsfw.com 50 points 5 months ago

Some governments try to make their sales tax less regressive by exempting certain necessities from it.

For example, my state taxes groceries, but exempts gun safes.

[-] shalafi@lemmy.world 10 points 5 months ago

I really like the idea of gun safes being exempt! Storage requirements is a thing I'm all about.

Food and medicine, including hygiene products, should be exempt everywhere. Florida doesn't tax those things, nor do we have a state income tax, and I'm pretty sure the government is well funded.

[-] FlyingSquid@lemmy.world 24 points 5 months ago

I'm sure it'll trickle down. Eventually. One of these days.

[-] Gork@lemm.ee 11 points 5 months ago

Benjamin Franklin: Kill meeee......

[-] SeaJ@lemm.ee 6 points 5 months ago

I'd love for Washington to not have to rely on a regressive sales tax but it would take a constitutional amendment to be able to do an income tax.

[-] ArmoredThirteen@lemmy.ml 2 points 5 months ago

I'm curious about more specific numbers for Washington. I live in the Seattle area, make "good for working class" money, something like 25-30% of my income goes to tax, and we don't even have state income tax. Do people making less pay like 50% taxes, if so is that all federal based, is the group of people they're talking about just so far above my income level I'm not grasping it?

[-] ChapulinColorado@lemmy.world 8 points 5 months ago* (last edited 5 months ago)

In the grand scheme of things “Good for working class” money is not a lot of money. You are one of the ones paying those higher taxes proportional to your earnings.

[-] ArmoredThirteen@lemmy.ml 2 points 5 months ago

Really sorry if I'm asking basic questions here I'm not good at processing this kind of information all that well. So is there like a cutoff point where earnings are exempt from taxes? Is it because it gets tied into other things like stocks that it isn't taxed? If stocks how does that work because I get partial income in company stocks and they take out a huge chunk of those so idk how they wouldn't be taxed for rich people. I'm not trying to complain about my situation I don't mind being taxed I'm just curious what's going on here

[-] yo_scottie_oh@lemmy.ml 8 points 5 months ago* (last edited 5 months ago)

If you only look at income tax brackets, that might explain your confusion because income tax is only one type of tax. On the other hand, sales tax tends to impact lower income people more than wealthy people because even though everyone may pay the same 5% sales tax, if you kept a ledger of all the sales tax everyone paid over the course of a year and compared it to everyone’s income, you’d find that as a percent of their income, lower income people paid more than wealthy people, which is why this article is saying some states’ tax structures are regressive, because when you look at the whole picture, not just income taxes but all types of taxes, the states that are “upside-down” tend to rely more heavily on sales taxes than income taxes to raise money.

The report published by the Institute of Tax and Economic Policy (which the article references) has more details if you’re interested enough to dig in further.

[-] ArmoredThirteen@lemmy.ml 1 points 5 months ago

Thank you for the info and the additional reading

[-] AA5B@lemmy.world 3 points 5 months ago* (last edited 5 months ago)

There is no cutoff, but:

  • we have increasing brackets to a point, then they stop increasing , which can make upper middle the highest income tax payers
  • income tax is only on “regular income” like salary. Wealthier are more likely to get their money as other types of income, taxed at different amounts, or play accounting shenanigans to shelter their money from taxes.
  • sales and excise taxes proportionally affect people with less income more, since a much higher proportion of their income goes to necessities
  • there’s a tendency to try to correct the regressiveness through greater complication, like my state does, but then are the less well off able to handle the extra paperwork to benefit?

Edit…

  • social security and Medicare taxes are only in the first x amount of income so are very regressive, although the payback is also less beneficial to the well off so I’m not sure how to count these
[-] ArmoredThirteen@lemmy.ml 2 points 5 months ago

Hmm I think I'm starting to catch on here. We're really in a mess of a situation like we fix one thing sounds like multiple things can just hop in to get around it...

[-] nbafantest@lemmy.world 7 points 5 months ago* (last edited 5 months ago)

https://smartasset.com/taxes/washington-paycheck-calculator#SpXkRlFJKS

I've found this website pretty accurate. It also breaks down income and fica etc

Washington is pretty easy since no state income taxes

To answer your question. As you make more, each addition amount is taxed a little more. So rich people and poor people pay the same rate on their first $50k, but rich people will pay higher rates on each check after 50k . There are several of these brackets and the. They kinda work like a step function.

this post was submitted on 14 Jan 2024
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