Sales tax

[Jonathan Buhacoff]

The wealthiest 1% of Americans earn $500K+ in personal income. The wealthiest 0.1% earn $2.4 million annually. The wealthiest 0.01% earn at least $63 million annually. This excludes the ultra-wealthy who take hardly any paycheck at all but have the immense wealth of their companies available to them. https://www.inquirer.com/business/america-rich-top-one-percent-income-wealth-inequality-20191017.html

It’s unfair that the complicated and loophole-ridden tax code enables people with more money, as a group, to actually pay less taxes than people with less money. The way to fix it is by doing two things: First, eliminate the personal income tax for individuals. Second, set sales taxes on goods in a way that allows poor people to pay less or even no tax for the essentials such as food and water, and wealthy people to pay more taxes on luxury items like large houses and boats. This way wealthy people don’t need to hunt for loopholes in the tax code, it doesn’t matter if they “earn” their money or if they merely “control” some asset, the tricks with taking loans won’t matter, because regardless of how they get the money or who is paying for it, the tax is paid for the item purchased. Wealthy people buy more things, they buy more nice to have and luxury items, so they’ll naturally be paying more in sales taxes. If a wealthy person decided to live like a poor person and buy all the essentials, then they wouldn’t be paying so much taxes. They could invest that money instead.

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