Consumption Taxes?

[ishtat]

Is there any Constitutional impediment to the introduction of a broad based federal consumption tax in the USA?

I am not asking whether it is right or wrong - a good or bad thing, but is it legally possible? I know that the individual States have their own sales taxes but could the federal government do similarly. I also know that some scholars have occasionally raised the constitutionality of the federal income tax, first introduced in 1913 but should a future government wish to raise revenue could it legally bring in a consumption tax like VAT(value added tax) GST.

The Trump tax reforms of a couple of years ago made it very easy to legally avoid company taxes in the USA.

Those Tax reforms vastly increased the deficit.
Unfunded pension/welfare liabilities continue to increase rapidly.
Coronavirus payments have blown another vast hole in government finances.
The current administration doesn't seem interested in cutting expenditure.

Where is the money going to come from to pay for this?

 

[bellisarius]

Nope. Go read HR-25, "The Fair Tax."

 

[Conager]

It was always easy for major multi National corporations to avoid US taxes. It's called Ireland.

There's no magic wand that you can wave to get smart people who are good with money to give up more than a fifth of it.

It doesn't even work when you go full totalitarian and seize the businesses and nationalize them. What's the incentive to continue to be productive for the State when the State decides what you get to keep?

That's the problem with so-called tax experts and so-called economists. Too many do not understand the basis of economics, which is more about the psychology of personal incentives then it is about math.

 

[FL30]

It was always easy for major multi National corporations to avoid US taxes. It's called Ireland.

There's no magic wand that you can wave to get smart people who are good with money to give up more than a fifth of it.

It doesn't even work when you go full totalitarian and seize the businesses and nationalize them. What's the incentive to continue to be productive for the State when the State decides what you get to keep?

That's the problem with so-called tax experts and so-called economists. Too many do not understand the basis of economics, which is more about the psychology of personal incentives then it is about math.

sounds like Communism - state owns and controls the company - so why be productive if you get paid the same whether you work or not, or the quality of the product

 

[Azazin]

I didn't find any impediments in the Constitution. You need to pay for all taxes, and if you don't, you will pay fees, and there is a chance you will get into jail. Luckily, I don't have to calculate taxes, and the accountant from work is doing them for me. I don't even get pay stubs from work. I need them only once, and I used a website to generate an online pay stub . I wanted to get leasing for a car, so I had to prove my income. It was the first time I saw how much I am paying for taxes, and I think it is not a significant sum of money.

 

[JohnnySavage]

There are several Federal consumption taxes. Most notably, the Federal tax on gasoline.

 

[oggbashan]

In the EU, a Europe wide tax is called Value Added Tax (usually 20%) on most goods and services. Individual countries were not allowed to vary it.

Since the UK has left the EU we have abolished the tax on women's sanitary products which used to be 5%. We wanted to before Brexit but EU rules prevented us. Other EU counties are trying to get the EU to abolish it too.

 

[Champakian]

Do all the young dudes get a break on condom taxes?

 

[bellisarius]

There are several Federal consumption taxes. Most notably, the Federal tax on gasoline.

My favorite is the telephone excise tax imposed to pay for the Spanish-American War. You would have thought that we'd paid for that one already.

 

[mayfly13]

The Trump tax reforms of a couple of years ago made it very easy to legally avoid company taxes in the USA.

Those Tax reforms vastly increased the deficit.

Unfunded pension/welfare liabilities continue to increase rapidly.
Coronavirus payments have blown another vast hole in government finances.

The current administration doesn't seem interested in cutting expenditure.
Where is the money going to come from to pay for this?

It was always easy for major multi National corporations to avoid US taxes. It's called Ireland.

There's no magic wand that you can wave to get smart people who are good with money to give up more than a fifth of it.

It doesn't even work when you go full totalitarian and seize the businesses and nationalize them. What's the incentive to continue to be productive for the State when the State decides what you get to keep?

That's the problem with so-called tax experts and so-called economists. Too many do not understand the basis of economics, which is more about the psychology of personal incentives then it is about math.

Jesus.

 

[Sean]

Since the UK has left the EU we have abolished the tax on women's sanitary products which used to be 5%. We wanted to before Brexit but EU rules prevented us. .

This is not true. It was just the lie trotted out by the government to avoid doing it.

 

[oggbashan]

This is not true. It was just the lie trotted out by the government to avoid doing it.

Are you sure?

https://www.gov.uk/government/news/tampon-tax-abolished-from-today

The Chancellor announced that the tampon tax was to be abolished from 1 January 2021 at March 2020 Budget. As the transition period ended on December 31st, the UK is no longer bound by the EU VAT Directive which mandates a minimum 5% tax on all sanitary products.

 

[Sean]

Are you sure?

https://www.gov.uk/government/news/tampon-tax-abolished-from-today

The Chancellor announced that the tampon tax was to be abolished from 1 January 2021 at March 2020 Budget. As the transition period ended on December 31st, the UK is no longer bound by the EU VAT Directive which mandates a minimum 5% tax on all sanitary products.

Gosh, the tories lied. I'm shocked. Ireland has no VAT on sanitary products and last time I looked they were still in the EU.

 

[oggbashan]

Gosh, the tories lied. I'm shocked. Ireland has no VAT on sanitary products and last time I looked they were still in the EU.

You are right, Ireland has zero rates on unsanitary products and is in the EU, but...

I think, but don't know, that Ireland had zero rates on sanitary products before joining the EU. I checked. I am right.

https://irishtatler.com/lifestyle/tampon-tax-ireland

The Irish rate was implemented before EU legislation imposed reduced VAT rates on certain goods and services. This legislation has prevented other EU members, like the UK, from reducing their VAT rate on sanitary products to 0%.

That is an Irish Source not a Tory one.

 

[taylormas]

I'm not a fan of tax evasion either. You will still end up spending more money when you pay your taxes if you don't end up with a real prison sentence. As an entrepreneur, I pay all my taxes, and so do my employees. My accountant uses https://www.payrollindex.com/payroll-processing/ and calculates all taxes for each employee. Many of them aren't interested in how much tax we pay for them either, and why worry about it if there is no other option? Those who have the right to a partial tax exemption provide the necessary documents and pay less tax.

 

[Bud_Spencer]

In the EU, a Europe wide tax is called Value Added Tax (usually 20%) on most goods and services. Individual countries were not allowed to vary it.

Since the UK has left the EU we have abolished the tax on women's sanitary products which used to be 5%. We wanted to before Brexit but EU rules prevented us. Other EU counties are trying to get the EU to abolish it too.

A consumption tax is different, applied only at the retail sales level, not at every level where value is added.

 

[Champakian]

FairTax.org