Forty-four of 50 US states worsen inequality with ‘upside-down’ taxes
Forty-four of 50 US states worsen inequality with ‘upside-down’ taxes
New research found that poorest fifth pay a tax rate 60% higher, on average, than the top 1% of households
Because right-wing propagandists have convinced morons that sales taxes hurt OTHER people, while income taxes hurt THEM.
I fucking hate these idiots.
Note the fair tax has specific measures in place to stop this type of exploitation by creating sales tax exemptions for all necessary goods and services. (Food meds gas ECT) and that was supposed to be offset by heavier taxs on luxuries and no exemption for businesses buying essentials. Republicans seem to have as usual. Cut the good part and enshitified what was supposed to be a more equitable result.
Republicans, or more specifically their wealthy puppet masters love taxes on the poor. That's because while individuals might avoid doing business with them, you can't avoid paying your taxes, and once the money is in the hands of the government they have all kinds of tricks to funnel it into their own pockets. Additionally it keeps the poor poor which makes them easier to exploit and turn into wage slaves that are so desperate for a job that they'll put up with horrible working conditions. Lastly poor people have fewer opportunities for education which limits their job prospects and as a bonus makes them easier to manipulate using propaganda.
As long as they don't have to pay it, they'll gladly support taxes levied on other people, but the moment you ask them to pay a single cent in taxes they'll bitch and moan about it.
Sales Tax is inherently regressive. And is much easier to remove the deductions and exemptions from than an Income Tax.
The least regressive jurisdictions are DC, Minnesota, Vermont, New York and California.
Note that those are also generally desirable places to live, so rich people live there anyway, making the whole 'they'll just move if taxes are high' argument bullshit.
It's crazy how fast the California tax rate scales as you make more. The difference between like 50k, 100k, 150k and 200k alone is wild. Each step the rate scales so fast
Some governments try to make their sales tax less regressive by exempting certain necessities from it.
For example, my state taxes groceries, but exempts gun safes.
I really like the idea of gun safes being exempt! Storage requirements is a thing I'm all about.
Food and medicine, including hygiene products, should be exempt everywhere. Florida doesn't tax those things, nor do we have a state income tax, and I'm pretty sure the government is well funded.
I'm sure it'll trickle down. Eventually. One of these days.
Benjamin Franklin: Kill meeee......
I'd love for Washington to not have to rely on a regressive sales tax but it would take a constitutional amendment to be able to do an income tax.
I'm curious about more specific numbers for Washington. I live in the Seattle area, make "good for working class" money, something like 25-30% of my income goes to tax, and we don't even have state income tax. Do people making less pay like 50% taxes, if so is that all federal based, is the group of people they're talking about just so far above my income level I'm not grasping it?
In the grand scheme of things “Good for working class” money is not a lot of money. You are one of the ones paying those higher taxes proportional to your earnings.
Really sorry if I'm asking basic questions here I'm not good at processing this kind of information all that well. So is there like a cutoff point where earnings are exempt from taxes? Is it because it gets tied into other things like stocks that it isn't taxed? If stocks how does that work because I get partial income in company stocks and they take out a huge chunk of those so idk how they wouldn't be taxed for rich people. I'm not trying to complain about my situation I don't mind being taxed I'm just curious what's going on here
https://smartasset.com/taxes/washington-paycheck-calculator#SpXkRlFJKS
I've found this website pretty accurate. It also breaks down income and fica etc
Washington is pretty easy since no state income taxes
To answer your question. As you make more, each addition amount is taxed a little more. So rich people and poor people pay the same rate on their first $50k, but rich people will pay higher rates on each check after 50k . There are several of these brackets and the. They kinda work like a step function.
Some of the taxes are "voluntary," meaning people are buying cigarettes, lottery, alcohol, (above average) gasoline etc.
If you and Bezos each buy a pack of cigarettes, your "tax rate" is higher. The poorest people can sometimes lower their tax rate significantly.
So poor people don't deserve stress relief or personal transportation.
Got it.
What I don't understand is how some states charge the same excise tax rate on stop smoking aids that they do on cigarettes and vapes. For example, California's is like 25% at least, and I think that's the lowest of the states with the excise tax on "tobacco." I thought the whole point of taxation was to get people to quit? But it's only on stuff like Zyn and One pouches, Rogue gum, etc. which are tobacco free, while Nicorette as a brand seems to be exempt from excise tax. Their products are exactly the same, but twice as expensive and work half as well. It's also counterproductive to have to go to vape shops to buy nicotine gum and pouches because California has made it impossible to get them shipped. Obviously getting people to quit is not the real goal.