Conservatives, spurred on by a national campaign, will rally Saturday in Columbia for what supporters call the “Fair Tax”.
Introduced as House Joint Resolution 36 in Missouri last session, it would replace the current state income tax with a tax on all sales and services. Let me repeat that ALL sales and services.
At a time when Congress is talking about getting more people health care, our Missouri General Assembly is talking about taxing it. But that’s not all, every service you pay for from TV repair to your electric bill would be taxed.
Obviously, such a regressive tax would heavily effect the poorest Missourians, but a full 95% of Missourians would pay more in taxes under this plan according to the Institute on Taxation and Economic Policy. They also estimate that in order to make the tax revenue neutral – which they claim to want in the legislation – the tax would have to be 12.5%. Now imagine paying an additional 12.5% on every dollar you spend on any goods or services.
These types of proposals make it clear that conservatives have no qualms about raising taxes – they just want to raise them on middle and low income Americans and cut taxes for the wealthiest 5%.
Introduced as House Joint Resolution 36 in Missouri last session, it would replace the current state income tax with a tax on all sales and services. Let me repeat that ALL sales and services.
At a time when Congress is talking about getting more people health care, our Missouri General Assembly is talking about taxing it. But that’s not all, every service you pay for from TV repair to your electric bill would be taxed.
Obviously, such a regressive tax would heavily effect the poorest Missourians, but a full 95% of Missourians would pay more in taxes under this plan according to the Institute on Taxation and Economic Policy. They also estimate that in order to make the tax revenue neutral – which they claim to want in the legislation – the tax would have to be 12.5%. Now imagine paying an additional 12.5% on every dollar you spend on any goods or services.
These types of proposals make it clear that conservatives have no qualms about raising taxes – they just want to raise them on middle and low income Americans and cut taxes for the wealthiest 5%.
4 comments:
You are completely wrong on this. Sales tax are always better. Take a look at Texas. They have no income tax and they created more jobs last years then EVERY other state combined.
Here is why this system would work better. In income tax I pay about 150 dollars for federal and state combined which is ridiculous. Now I'm not a big spender. So in sales tax I would not pay near as much. If you think about it this tax would actually tax rich people more since they are the ones that buy stuff. I hear democrats love to make rich people pay more in taxes. Well here you go.
Now all we need is for The Fed to pull their head out and introduce a sales tax instead of the ridiculously high federal income tax.
I agre with Dave on this. "consumption tax" is the way to go. Who cares if sales tax goes up 3% as long as your income tax goes down more than 3%. The only way you get screwed is if you spend more than you make. And if that is the case, you are screwed anyways. Get with it Action Jackson
www.thetoastandtheroast.blogspot.com
Because low income individuals tend to spend a much larger portion of their income than do upper income individuals, this tax would saddle most of the economic burden on low-income individuals. According to ITEP, this proposal would be a tax increase on 95% of Missourians. By all accounts, this is a tax INCREASE. Something that Governor Nixon and people in the majority party in Missouri have said they are against. Yet, it continues to gain momentum.
Taxing child care, hospital visits, K-12 education, and legal services would hurt Missouri greatly.
In addition, for the two economic engines int he state (Kansas City and St. Louis) we would see a giant push by consumers to start purchasing goods and services in neighboring states, leaving even more revenue off the table. This is a bad idea on all accounts.
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