I live in one of those states without a sales tax. There's also no earned income tax. Revenue is raised through a series of 'user fees', business taxes and 'sin taxes' but the overwhelming majority comes from property taxes. It's hardly an ideal system. Moreover, it's fiscally unwise. One wouldn't dream of putting all one's assets in one financial stock yet the NH state legislature and governors seem perfectly content to rely almost exclusively on one source of revenue despite the inequity that results. ~*~ ~*~ ~*~ ~*~ ~*~ ~*~ ~*~ ~*~ ~*~ ~*~ E. Ann Poole, MSc, Ecologist & Environmental Planner PO Box 890, 741 Beard Rd Hillsborough, NH 03244 (603)478-1178 [EMAIL PROTECTED] www.eannpoole.com Celebrating 10 Years of Excellence 1997 - 2007 ~*~ ~*~ ~*~ ~*~ ~*~ ~*~ ~*~ ~*~ ~*~ ~*~ ----- Original Message ----- From: "Esat Atikkan" <[EMAIL PROTECTED]> To: <[email protected]> Sent: Tuesday, December 04, 2007 2:31 PM Subject: Re: [ECOLOG-L] 'Fair tax' and the environment
> Sales tax can be made progressive by not taxing food & clothing, an > approach that PA has taken (NJ also??). Thus those in the lower income > brackets, who spend most of income on essentials are less 'taxed'. > > It is also possible to establish a indexed sales tax, where sales tax > kicks in or increases at certain threshholds (not easy, granted). Thus > the sales tax on a vehicle would be x% up to say $20,000, increasing to a > higher value beyond that value. It is like the gaz guzzler tax. > > It is notable that 3-4 states get along without sales tax. > > E. Esat Atikkan > > In a country the USA, I'm not sure that consumption really is >> proportional to income. When you are poor, almost all of your >> income is >> spent on necessities. Everything is on such a day-by-day hand-to- >> mouth >> level that many things end up costing more (i.e. going to the >> emergency >> room instead of the family doctor). This is because you do not have >> the >> funds for insurance, to plan ahead, to buy or rent a house (paying >> weekly rates at hotels really adds up), or to buy quality & long- >> lasting >> items. >> >> As you move up the scale, possibly the first shift is increased >> expenses >> on diet. It's only at the higher income levels that people actually >> start saving. >> >> It's for this reason that I've always seen sales tax as regressive. > > Agreed, we should be taxing consumption of resources which I view as > > > --------------------------------- > Be a better sports nut! Let your teams follow you with Yahoo Mobile. Try > it now. > >
