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Showing posts with the label federal income tax

Don't Buy the National Sales Tax

Over the weekend I heard a well-off, middle-aged man provide his thoughts on what he'd do if he became president, at least with regard to taxes. The idea he shared was that he'd eliminate federal income taxes and replace them with a national sales tax. While I cringed when first hearing this suggestion, I hadn't done thorough research on the subject yet, so I kept my mouth shut until doing so. Well, now that I have researched the matter, it appears as though my first reaction was indeed the correct one. It's estimated that the revenue in this country for 2019 will be approximately $3.44 trillion and that 50% of that, or $1.824 trillion, will come from individuals' income taxes. In order for us to make up that lost revenue, we'd need to increase the (exclusive) sales tax rate to 44%. The average state sales tax (including D.C.) is 5.1%. So an item which costs $20 before tax currently averages to cost $21.02 after tax. If a national sales tax were implemented, h...

The Thin Line Between Maker and Taker

Joe Bush: "Do you see that building over there, little Joey?" Joey Bush: "Yeah..." Joe: "I built that." Joey: "Really? All by yourself?" Joe: "That's right!" Joey: "How long ago was that?" Joe: "Well, your great-grandpa is the one that started it, so it's been around for a while now." Joey: "...and you built that?" Joe: "You betcha. ...and someday, when you're my age, you'll get to tell people the same thing - that you built that." Joey: "Wow. I'm gonna build a lot of things, aren't I, dad?" Joe: "You bet you are! You already have!" Joey: "I have? Like what, dad?" Joe: "That backpack you wear every day to school - you built that!" Joey: "Really?" Joe: "Yeah - you put it on your back and made it work, right?" Joey: "That's right!" Joe: ...