When I was reading the news the other day, I came across an article stating that some members of the GOP have decided that tax reform is just impossible, so they are floating the idea to do away with income tax altogether, and they want to make up the revenue by increasing the sales tax. This is just another form of a flat tax that impacts the middle and low income Americans while benefiting upper income Americans.
While the idea of taxing our wages is unpleasant, income taxes are actually the fairest way to raise revenue to support the needs of the country as a whole. This is only true of course, if the tax codes are applied fairly to everyone. Sales taxes, on the other hand, are a heavier burden on middle and low income Americans who spend a larger percentage of their income on taxable goods and services. for example: $ 200 per week for food is the same amount whether you make $25,000 per year, or $250,000 per year, but that amounts to
$ 9,600 per year just for food. To someone making $ 25,000 per year, this is over 38% of his annual income. For a person with an income of $ 250,000 , $ 9,600 is a paltry 3.8%. By increasing the sales tax, the price of food effectively goes up, causing middle and low income Americans to spend even more of their income on food. By the time you factor in other taxable items such as clothing, the burden becomes even greater for the people already struggling the most to put food on the table and clothes on their back.
I definitely have to give credit where credit is due. The GOP is always coming up with creative ideas to make life easier for people who make enough money to make it worth their while, in the form of generous contributions. It really is a Grand Ole Party isn't it?
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