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Originally Posted by somerfrost
A very complicated issue...what would a drastic increase in sales taxes do to the economy? It would encourage folks to spend less...good for the folks doing the saving but rough on employment I suspect...less stuff bought=fewer jobs. A graduated income tax seems the only fair way but it's complicated. If we do as suggested and not tax the first $25,000 would that be fair? Of course not cause if I make $25,000 a year living in rural America as a single person, I'm in a very different spot than if I make the same while living in NYC with a wife and four kids. I think the best answer is to increase the amount not taxed using a formula that takes into account cost of living and number of dependents...the key point being that the tax exempt figure must be higher! Say, the first $40,000 baseline. Then increase the % paid by the rich to a point where 90-95% is taken! That will never happen of course...but bottom line, there is a point where folks really don't need any more income! Bill Gates seems to be a nice guy...but he doesn't need $180 billion dollars or whatever! The little child going to bed hungry needs a little tiny piece of that pie a whole lot more!!
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i agree that cost of living should be factored in. 20k here in arkansas goes a lot further than 20k in new york or california.