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View Diary: Republican state governments look to shift taxes from corporations to low-income people (125 comments)

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  •  Sales tax on food definately taxing the poor more (26+ / 0-)

    There is no way removal of any income tax they pay will offset the tax on goods and services they use, and even if it did the tax system would be balanced unfairly as invariably the wealthy would pay less of a share of the tax pool.

    So yeah they are definitely taking that "Lets see how worse we can make it!" mantra seriously.

    --Enlighten the people, generally, and tyranny and oppressions of body and mind will vanish like spirits at the dawn of day. - Thomas Jefferson--

    by idbecrazyif on Mon Jan 14, 2013 at 08:31:31 AM PST

    •  No state sales tax on food in Louisiana (19+ / 0-)

      It's in the state constitution -- there are no state sales taxes on food for consumption in the home (restaurant food is subject to state sales tax), prescription drugs, or utilities.  

    •  Regressive? (2+ / 0-)
      Recommended by:
      alwaysquestion, idbecrazyif

      Whether a tax is regressive totally depends on how it is written.  For instance, a person needs about $1,000 a month to live.  That is the poverty line.  Therefore a progressive income tax would have a deduction at that point. There does not have a tax credit, but there should not be a tax.  We can argue all we want whether to top 1% should be taxed at 15% or 40%, but when a poor person paying taxes on money that should be used basic necessity, and a rich person is paying for money they could use for extra few bottle of champagne, that is not really progressive.

      Sales tax is the same way.  There are efforts to make the tax more progressive. For example food is often not taxed, but what is food.  Should we count chips, McDonald's, candy, and other essential non nutritional foodstuff as food?  Some states have holidays on taxes for school supplies and clothes, yet will severely limit what counts as such.  But then we get into arguments about are we using the progressive sales tax to social engineer, favoring cotton over leather, for instance, as is often the case.

      And then there is enforcement and collection.  Corporate taxes are notorious difficult to collect and corporations often have no incentive to work very hard to minimize taxes.  Personal income taxes often impose a significant one time burden, and open up less educated people to fraud, such as those where a tax preparer will make a short term loan at huge rates.  If a mistake is made, the victim is still responsible for those funds.

      Not to say that state income taxes are not useful.  Just to think that an income tax is inherently better than sales tax is simplistic.

      •  Simplification of all taxes would be nice (3+ / 0-)
        Recommended by:
        dotdash2u, Larin, La Gitane

        However we have this messy, albeit awesome at times, local vs state vs federal.

        The totality of our tax burden is so obfuscated to all but only the well educated about it. Very little outreach is done either on pushing lower income segments of our society into learning more about the tax code, where they are taxed, and how they are taxed.

        A good example would be my neighbor. For years he simply walked into HR Block, paid his hundred or so bucks and that was that. I know how much he makes as he and I are pretty much in the same boat financially.

        I tried for years to try and get him to sit down and learn how to itemize his taxes and then compare that against the standard deductions.

        I finally got him this year, we sat down and I walked him through it all. Took some time, but come to find out he'd been loosing thousands for all these years. Thankfully you can amend for the last three years, so I'll be helping him do that this coming weekend.

        So I agree with you every step of the way.

        Simplify and educate

        --Enlighten the people, generally, and tyranny and oppressions of body and mind will vanish like spirits at the dawn of day. - Thomas Jefferson--

        by idbecrazyif on Mon Jan 14, 2013 at 11:11:20 AM PST

        [ Parent ]

        •  The only reason (1+ / 0-)
          Recommended by:

          the tax code is as complex as it is is because corporations lobby for exemptions and crafty loopholes.

          It could be a lot simpler if we kicked lobbyists out of congress.

          "Mediocrity cannot know excellence." -- Sherlock Holmes

          by La Gitane on Mon Jan 14, 2013 at 02:35:27 PM PST

          [ Parent ]

    •  What if you're on Foodstamps? (1+ / 0-)
      Recommended by:

      Do you pay the tax out of pocket or does the Dept. of Agriculture pay it?

      Meddle not in the affairs of dragons... for thou art crunchy and good with ketchup.

      by Pariah Dog on Mon Jan 14, 2013 at 11:15:45 AM PST

      [ Parent ]

    •  These stupid Repugs are unknownly (1+ / 0-)
      Recommended by:

      building a future huge black market that will starve the state of the few paltry funds that they are currently collecting. People especially poor people will always find ways to survive and get around these types of oppressive systems regardless of who puts it in place. Since these Repug racist blowhards are so far removed from poor people, black and white, in their respective states they  have little idea how to COPE WITH the currently existing underground economy that is presently thriving in their state, so their feeble minded response is to go after basic food stuffs. But as I said above all this will do is create a thriving black market for out of state goods, produce and products to flood into new underground markets for the poor and low income earners. Frankly I am surprised that Wal-Mart has not kicked these Repug jackasses in the butt, because Wal-Mart will be the biggest loser if this "tax the poor" situation is allowed to stand.

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