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View Diary: Amazing! Washington State defeats I-912 and anti-tax zealots (79 comments)

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  •  It was a regressive tax... (none)
    Like our state sales tax. It hit middle and low income people harder than it should have.
    •  How so? (none)
      Being based on vehicle value, someone buying a cheaper vehicle or choosing (like me) not to own one would pay less or none.

      by Bensch on Thu Nov 10, 2005 at 01:43:41 PM PST

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      •  I think maybe (none)
        you are both right re the MVET.  It was progressive because I think (and maybe I'm completely wrong on this - I'm sure someone will let me know) the tax rate varied depending on value, much like the income tax.  It was regressive in that people who are less well off would still buy new or newish cars, and they are definitely hit hardner than the rich.
        •  That seems like a bad decision... (none)
          on the part of the poorer people. I mean, I'm no libertarian, but if you can't afford a $20,000 car, DON'T BUY ONE.

          by Bensch on Thu Nov 10, 2005 at 02:31:34 PM PST

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        •  Cheap cars still cost an arm and a leg (none)
          If someone can afford a Porsche, they won't even notice the tax.  If someone buys a beat up old Ford they found on road dead, the tax really bit into the price.

          It wasn't progressive because it was pretty much flat across the board.  Cheap beaters should have been exempt.  Think of it in miles per tax dollars.  That brand new car is less tax dollars per mile than that old beater near the end of it's life.  And when you replace that old beater with another old beater, you have to pay a tax AGAIN.

          So no, it wasn't progressive at all.

      •  Poor people (none)
        Overall, they will spend a higher percentage of their overall income on a vehicle.  Just like other products.  Poor people will spend a higher percentage of their income on necessities, so a sales tax is regressive in that it impacts poor people disproportionately.
        •  That's why you take sales tax off necessities. (none)
          Sales tax is okay if you either do the same thing you do with income tax - only make it start after a certain amount is spent, lowering the percentage a poorer person pays, or removing it from any necessities.

          by Bensch on Thu Nov 10, 2005 at 03:00:55 PM PST

          [ Parent ]

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