
Originally Posted by
Nerv14
If food was exempt from a sales tax or value added tax then the poor would actualy pay more money because higher income individuals are more likely to buy unfinnished food. If one of those taxes was the only way for the government to gain income then it would be crucial to have the least amount of excemptions as possible, because of the high tax from that single way.
A lower tax for those products would be fine, but it would need to be strict and difficult to increase or spread.
Real Estate taxes can be seen as something that taxes someone for not spending, but I think they are acceptable because unlike income or what someone currently owns, land can not be created and there is only a limited amount of it. Land is truely something that is borrowed from the Earth because it can not really be destroyed, so I just feel that it is acceptable. I guess my reason is kind of shaky, but whatever.
After looking at a Value Added Tax on wikipedia, I think that would be the best form of taxation because it only taxes people when they consume and the tax is also spread out through all levels of production, which I think is positive. However, there would need to be a much larger tax for luxury goods because if the same tax was on everything then the poor would surely lose wealth because of the regressive tax on sales taxes.
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