Are Americans Overtaxed?

[beachFool]

I am ok with my effective tax rate as well. Investing in the services of a good CPA is money well spent. But, it's all of the other taxes that get you: phone, cable, internet, power co., gas, storm water runoff, taxes if you own a business, surcharge to use a credit card for services at some businesses, etc.
I have no problem paying 23 percent in sales tax. I don't spend 100,000/yr., so I will be paying far less than 23,000 for my consumption, have money to save, play, travel, make improvements to my home and drink expensive wines. I totally am on board for the fair tax....well, because it's fair and it makes sense!

Except you will be paying more than 23%.

A. That rate is too low to replace Federal revenue.

B. Don't forget your state sales tax because unless the tax fairy waves her magic wand it ain't going away.

 

[ugabuga]

Some are over taxed, others are undertaxed. Our tax system is very unfair, it should target consumption (which is why I love florida), not income and investment.

Personally, I'm fine with my current effective tax rate. I do not feel I should pay anymore than I currently am.

Wouldn't tax targeted on consumption be regressive & more burdensome on the poor than on the well off?

If you make $200,000 & spend $100,000 on which you pay 25% on top for consumption tax, you're left w/ $75,000 plus all you bought.

If a single-parent waitress makes $20,000, she can only spend $16,000 plus tax--that's all she has.

 

[ugabuga]

I am ok with my effective tax rate as well.

I have no problem paying 23 percent in sales tax.

I totally am on board for the fair tax....well, because it's fair and it makes sense!

Wouldn't a "fair tax" on consumption be regressive & more burdensome on the poor than on the well off?

If you make $150,000 & spend $50,000 on which you pay 25% on top for consumption tax, you're left w/ $75,000 plus all you bought.

If a single-parent waitress makes $20,000, she can only spend $16,000 plus tax--that's all she has.

 

[Lynnie]

Income Tax is progressive, so yes the proposal of fair tax essentially is regressive by definition. I believe the proposal addresses tax credits for the lower wage earner; however, don't dismiss the savings generated for this person as well. Yes, I am completely for assistance for those who need help and what you describe, ugabuga, is fair. I know a family of five whose income is 33,000/yr. and recognizes the savings they would enjoy with the fair tax. Some states currently have no sales tax on food and clothes up to a certain limit as well.

 

[30ashopper]

Yes, there's nothing preventing the government from writing checks for low income workers. Most of these folks are on some sort of government program anyway. Plus, instead of having to wait for april 15th, they would be receiving their full pay in their paycheck. Your single mother would receive her full paycheck each week, plus a 3k check in april.