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  #41 (permalink)  
Old 04-15-2006, 04:46 PM
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Default gee

Quote:
Originally Posted by noetsi";p=&quot View Post
just once, just once, actually read my post before you comment on them.
Really? Who's ignoring who?
Quote:
I said, repeatedly, that the example I was giving was an example - not actual data. To demonstrate how taxes impact people and it is exactly how they do impact people - I simply chose easy numbers to calculate. The real ones have the same impact. What you ar commenting on is not even about income tax, its about a consumption tax.
Did you read my post? First of all, your example assumes two things. (My, we are good at assumptions, aren't we?) Your example only works if rich people only spend a very small portion of their income, and poor people are taxed for every penny they spend. The first one is ridiculous, but if you want to post evidence to the contrary, go ahead. The second, as I clearly stated, depends on the location. Feel free to post where taxes on food etc are the fault of conservatives. I've lived in 5 states. Only 1, Alabama, taxed food. Three have state income taxes.

Quote:
The federal government absolutely does have many sales taxes. Three of the most obvious are those on alcohol, gasoline, and cigarettes which add significantly to the cost of the product.
You are certainly right. I had in mind necessities. Since the data would tend to show poor people drink more alcohol and smoke more than rich people, can you post the evidence of either conservatives efforts to raise these taxes or liberals efforts to lower them? Betcha can't.

Quote:
Look at analysis of state taxes (you can try Mike Miksell one of the best known experts). They are heavily regressive in nature in most states.
Most states? Not only do you need to provide a link, but you also need to show that these regressive taxes started by virtue of conservative leadership.
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  #42 (permalink)  
Old 04-15-2006, 05:00 PM
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Default I dont provide links

because the complex analysis involved is not on the net. Read someon like Mikesell's analysis of state taxes (I can give you the citation if you like) and see if they are regressive or not. Economist generally agree they are, its simply not placed on the internet as is most academic research not there.

Quote:
Your example only works if rich people only spend a very small portion of their income, and poor people are taxed for every penny they spend.
My example works if poorer people spend a higher preportion of their income on nessessities which are then taxed. I have never read any economic, statistical, or fiscal analysis that disagrees that they do spend far more of their total income on neccessities, there is universal agreement among those who study income that as income declines the amount of money you must spend to survive as the total preportion of your income goes up. My analysis assumed far more discretionary income for poorer groups than is reflected in the data.

But again this type of analysis is in journals and books not on the net.
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Old 04-15-2006, 05:21 PM
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Default Some more examples

Not from me.

Quote:
Classical economic analysis indicates that the marginal propensity to consume (MPC) decreases as income increases. Households at the lower end of the income scale are spending almost all of their income, while households at the higher end are more likely to devote a portion of income to saving.
http://en.wikipedia.org/wiki/FairTax

Let's imagine two frugal traveling salesmen. They each have to buy a new car every four years to (say) keep up appearances, and they need reliable transportation.
(One guy makes 20K, the other 300K)
Run the numbers on a the RATE of total income each pays on on 5% sales tax.

Poor Boy buys a $20,000 car pays $1000 or 5.0% of his income.
Rich Boy buys a $60,000 car pays $3000 or 1.0% of his income.

Poor Boy has 5 times the tax bite, or rate of tax on a car. Rich Boy hardly feels sales taxes.

Then run the numbers on a $30 pair of Levis, and the tax rate discrepancy triples.
Sales tax is NOT a flat tax.



--------------------------------------------------------------------------------
Other examples of regressive taxes and fees.
Most per-unit taxes are regressive. For example, in real estate, a $1,000/yr per lot assessment fee is not uncommon in some areas. (for things like fire and sewer, etc) That's a fair chunk for a $200,000 home, hardly nothing for a $2,000,000 home in the same assessment district.

Here is an example of a per-unit tax also of the "sin tax" variety, combining two of the most regressive of all taxes. In California, a (say) $1/gallon of alcoholic beverage tax was enacted, then quickly repealed. The reason was, this was a major tax bite on a six-pack of beer, and almost nothing on a $150 bottle of champagne, or a $60 bottle of scotch or wine. Often sin-taxes are easy for politicians, not this time. There was a similar per-unit "snack tax" that met a similar fate because of potato chips v. caviar and such. These amplifications of the tax rate discrepancy work in conjunction with the normal regressive sales tax functions.

That outlines the basic ideas and theory of regressive taxation.


http://www.psnw.com/~bashford/taxation.html

This is the conclusion of the very very economically conservative CATO (who never saw a rich man or a business they did not like)

Quote:
The results in Tables 3 and 4 indicate that a shift from the current income tax to a broad-based retail sales tax would be a regressive shift, whether measured on an annual or a lifetime income basis.
Not surprisingly they go on to argue this should be ignored in favor of "efficiency"

http://www.cato.org/pubs/pas/pa-289.html

Quote:
Sales taxes are generally regressive, that is, poorer people tend to pay a greater percentage of their income in sales tax than richer people, because they tend to spend a far higher percentage of their income. In some locations, items such as food, clothing, or prescription drugs are exempt from sales taxes ostensibly to alleviate the burden on the poor. Some of these exemptions (such as exemptions for clothing or prescription drugs) actually may make the tax more regressive, since poorer individuals may spend a smaller percentage of their incomes on these items than do richer individuals.
http://en.wikipedia.org/wiki/Sales_tax
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  #44 (permalink)  
Old 04-15-2006, 05:28 PM
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Default Just for laughs

Conservatives commonly argue that 40 to 50 percent of lower income people dont pay taxes (they really mean dont pay income taxes but its a minor technicallity). Which is why this is humerous.

Quote:
The bipartisan President's Advisory Panel for Federal Tax Reform, with the help of the Treasury Department, concluded that the FairTax is the only reform proposal that completely untaxes the poor.
Quote:
The FairTax would dramatically broaden the tax base to include all 295 million Americans
Quote:
FairTax supporters claim that the tax burden shifts to those who do not pay taxes under the current system.
So people are paying no taxes now, they will be paying taxes in the future, and they will pay less taxes in the future.

Makes sense to me

The link is in the above post.
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  #45 (permalink)  
Old 04-17-2006, 09:48 AM
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Quote:
Originally Posted by noetsi";p=&quot View Post
conservatives are very selective in their analysis of taxes, because if they are not it would be pretty obvious just how narrowly class based their policies are. I will give a few of the obvious examples below.
Actually liberals are not only very selective, but misleading as well. Such as the tax cuts for the rich fairy tale. As shown below.

Quote:
First when they talk about taxes they are very careful to not draw attention to how much of the total income in the US upper income groups earn and they restrict their analysis exclusively to one and only one tax, the federal income tax and no others. Thus they will argue that the percent of total income taxes paid by upper income groups went up after 1980 entirely ignoring that this occured in large, or entirely, because the percent of income earned by top income groups went way up after 1980.
No matter how you measure it, the rich pay more in taxes whether as a percentage of income, total dollars, or a percentage of Americans. Liberals particularly forget about property taxes when discussing taxes in general.

Quote:
For example say in 1980 the top two percent earned 40 percent of US income and paid 50 percent tax rates (which they did not but its for ease of example). Thus they would pay 20 percent of the GDP in taxes. The rest of the public earned 60 percent and pay 16 percent rates, they pay 10 percent of GDP in taxes. Then in 2005 at 50 percent tax rate the elites earned 60 percent of total US income. They would pay now 30 percent of gdp in taxes. The public at the same 1/6 would pay about 7 percent. The ratio of money paid by the two groups would be much higher but it would be exclusively because of changes in the percent of the economy earned by elites.
And this would have absolutely no impact on the progressive tax rate and the fact that the rich pay more as a percentage of income than anyone else.

Quote:
Second income taxes are one of only many taxes paid by the public - they simply are one of the few that are progressive which is why conservatives exclusively focus on them. Federal exise taxes and most state taxes are highly regressive, that is you pay a higher percent of your income as your income goes down. This is one example from the conservative darling, the consumption tax.
More spin by the left, I'd put this up there with your attempt to characterize rising income under Carter while ignoring the record inflation that came along with it. The federal government has nothing to do with state income tax rates or state excise taxes on gas, alcohol, etc. Therefore it is irrelevant to the discussion at hand, which is federal taxes. If we want to reduce overall taxes then you should petition each and every state. Attempting to include it in the federal discussion is liberal spin.

Quote:
I am Joe Rich guy. I earn a million a year (not that much these days for many of the super wealthy). I spend 10 percent of my income on consumption (which is likely high for required consumption expenses). 10 percent of that is taxes. I pay 1 percent of my total income in taxes.

I am Joe Doe. I earn 30 thousand a year. I spend 20 thousand of that on required consumption expenses (things like housing, clothes, food etc that are not discretionary). This is a very low number of what actually would be spent by such an income earner but I do it to give the consumption tax types a decent break. I pay ten percent of that 20k in consumption taxes 2000 dollars. I pay 6.6 percent roughly of my total income in taxes far more than Joe Rich guy.
Yeah I know these are only examples, of course they are highly spun examples tilted to favor your argument. Do you have any evidence that the poor or middle class pay such a differential if ANY differential exists? It is reasonable to assume the middle class and rich spend more non-discretionary and thus would pay more in taxes as percentage because they are buying more, this would make up for the difference in your very liberal example. Joe Rich guy likely has a boat, a larger mortgage with higher property taxes, etc.

Quote:
But the reality is even worse. The real bit from taxes is not on total income but on discretionary income that which you dont need to survive. Joe Rich guy has 900,000 he does not have to spend (even with very generous definitions of that term which assumes he "needs" to have very fancy digs, cars etc compared to others). Only about 1 percent of that is touched by taxes. Joe Doe has 10k in discretionary spending (which is way high for real Americans who need to spend most of their income to get by these days). He pays 20 percent of his discretionary income in taxes. Many state and federal exise taxes are done exactly this way now (as are local taxes).
More spin, taxes are based on total income not discretionary versus non-discretionary because it is irrelevant to the argument. We do not have a system where the government, or anyone else for that matter, determines what is and isn't necessary. It also ignores the fact that the rich pay taxes on that income via spending on other goods, not that it matters because the whole point is irrelevant anyway.

Quote:
Somehow conservatives never get around to that type of analysis. Its fasinating how they focus nearly exclusively on taxes that hit high income groups such as income or estate taxes and never get around to discuss the other taxes (which are equally if not more prevalent than income taxes) which have the opposite effect.
We don't because it's irrelevant to the discussion. At least the above is. And you are of course incorrect in your basic assumption because many conservatives focus on these taxes. Mitt Romney has attempted to roll back state income taxes as voted on by the citizens of the state. Democrats have resisted this because, well...like most dems they think they know what's better for people than they do. I guess we can call this argument the strawman of your post.
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Old 04-17-2006, 01:33 PM
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Default Why should the poor pay fed income tax?

Quote:
Originally Posted by barney-fife";p=&quot View Post
If it's fairness you seek, then might I suggest all wage earners pay federal income taxes? In other words, the only fair thing to do is increase taxes on the poor.
In all fairness, the government does a lot more to protect the interests of the wealthy than the poor, so why shouldn't the wealthy foot the total bill?
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Old 04-17-2006, 01:38 PM
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Default a

Quote:
Originally Posted by Joker";p=&quot View Post
Quote:
Originally Posted by barney-fife";p=&quot View Post
If it's fairness you seek, then might I suggest all wage earners pay federal income taxes? In other words, the only fair thing to do is increase taxes on the poor.
In all fairness, the government does a lot more to protect the interests of the wealthy than the poor, so why shouldn't the wealthy foot the total bill?
You got a bite, Barney. Now reel him in!
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  #48 (permalink)  
Old 04-17-2006, 01:56 PM
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Default I'm serious, though.

With the exception of those who own large corporations, no one should have to pay fed income tax.
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Old 04-17-2006, 03:03 PM
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Default Furthermore...

I'd just like to add the fact that they are willing to hand out 0% interest loans to the government year after year speaks volumes about the generosity of America's lower classes.
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  #50 (permalink)  
Old 04-17-2006, 05:34 PM
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Default I think

Quote:
Originally Posted by Joker";p=&quot View Post
Quote:
Originally Posted by barney-fife";p=&quot View Post
If it's fairness you seek, then might I suggest all wage earners pay federal income taxes? In other words, the only fair thing to do is increase taxes on the poor.
In all fairness, the government does a lot more to protect the interests of the wealthy than the poor, so why shouldn't the wealthy foot the total bill?
what we spend on social security, medicare, welfare, medicaid, prescription drugs, unemployment, school grants, minority hiring programs, etc etc says otherwise.
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