Wednesday, November 28, 2007

SalesTax or Income Tax?

Texas was designed to be a low tax, low service state on purpose. Texas uses this to lure more people to move to Texas. Texas has NO state income tax what so ever. In fact, the only real tax that the Texas State government actually imposes on the people is the sales tax. Oh yes, that wonderful sales tax. Texas’ sales tax is one of the highest in the country at 6.25% per item bought. You might think,” cool I only have to pay 6.25% of an items price to the government, I can pick and choose what I want to be taxed on.” This is a double-edged sword, however, because you get what you pay for and this doesn’t affect all people fairly.
If you happen to make a good bit of money, the sales tax won’t hurt you too badly. After all, what is another 6.25% to you! But most of Texas gets the middle finger from their bank account every time they buy something. I recently bought a car, and low and behold I paid an additional 1,500 dollars to cover the sales tax. 1500 dollars! You could have bought a flat screen TV for this amount. The tax on the car was a bit more than I make in 1 month! People without a lot of money feel the impact of this much more than anyone else. This hurts the economy, hurts you, and helps to further our poverty level in Texas.
Secondly, If you have ever needed Medicaid, disability, help with a handicapped family member, help because of poverty, medical insurance, etc and more, than you are better off moving to a new state. Texas does not provide much in the way of programs to help the needy at ALL. If you want low taxes you get LOW SERVICE. How to fix this? Switch to an income tax based taxation system and get rid of the sales tax system. Tax people based upon the amount of income they receive to create equality between everybody. Create programs that will benefit the poor and needy using the extra money the government receives. Plus you won’t have to pay that nasty tax the next time you buy a car, eliminating some of the interest on your loan. Lastly, you get some of the money back every year like your federal tax returns! I have not heard of that happening with the sales tax. You might pay a bit more, but you will get much more back to the benefit of everyone.

1 comment:

Bill Pickle said...

The author of this commentary puts forth their ideas in a logical and easily understood fashion. The writer is clear on where he stands on the issue, but the arguments could have been better thought out and backed up with more than personal anecdotes. The blog is easy to read overall.

In a just society all citizens should pay equally for the services the government should provide. A progressive income tax does not provide this. I should not have to pay more taxes just because I am talented enough to be more productive and earn more than someone who works at Taco Bell. The fact that someone is too pathetic and or to lazy to find a job should not excuse them from paying for the services that useful citizens pay for. Income and property taxes are taxes on productivity. Socialist wealth redistribution schemes makes everyone equally poor and miserable. Productive and talented people should not be punished for being talented and productive. The only fair tax is a tax that all citizens are bound to pay equally. The sales tax is the closest we have to that.