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Thread: Changing sales tax exemptions for food

  1. #51
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    Re: Changing sales tax exemptions for food

    Quote Originally Posted by phattonez View Post
    Currently uncooked food is exempt from sales taxes. This is because taxes on necessities at a flat rate is regressive to the poor because they pay a higher proportion of their income to necessities. However, this falls short for a number of reasons:

    1. Other necessities like clothing and housing are not tax exempt.
    2. Unnecessary expenditures like more exorbitant foods are also tax exempt.

    Instead, we ought to tax those goods, but offset with a set amount to each person per month. This way there is effectively zero tax on necessities without giving a tax break on luxuries. It's a relatively minor change, yes, but this is a significant flaw in our tax system.
    Or just get rid of the sales tax and increase the income tax rate in higher brackets. Why do we need so many different taxes, anyway?

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    Re: Changing sales tax exemptions for food

    Quote Originally Posted by Waddy View Post
    Our local sales taxes everything at 9.82%. So for big purchases I cross the state line and pay 6.75%. They also exempt food. So I make a regular grocery run at about $600. No tax.
    Do you think you save money driving across the state line and back to save $18 in sales tax? How much fuel and wear-and-tear costs on your vehicle do you think that drive costs - and how much extra time does it take you?

    Figuring the difference between your costs to drive there and back to the $18 you save, how much does that mean you calculation your time is worth to you?

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    Re: Changing sales tax exemptions for food

    Quote Originally Posted by joko104 View Post
    Do you think you save money driving across the state line and back to save $18 in sales tax? How much fuel and wear-and-tear costs on your vehicle do you think that drive costs - and how much extra time does it take you?

    Figuring the difference between your costs to drive there and back to the $18 you save, how much does that mean you calculation your time is worth to you?
    9.82% of $600 isn't $18..... it's almost $60.00. Remember, NO sales tax on groceries, so I avoided that 6.75% sales tax, too. I live just across the state line. It's not much distance. So it is worth the savings. Last month I bought tires for two trucks, total about $1400.00. Kansas charges 9.82% sales tax on ALL online purchases. So I had them delivered to my youngest son's address just across the state line. NO tax on online purchases., yet. Saved almost $140.00. It's worth the trouble.

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    Re: Changing sales tax exemptions for food

    Quote Originally Posted by phattonez View Post
    Is there any exempt clothing?
    Depends on the state. Some states don't tax food or clothes or both. Minnesota (mentioned in a response to your post) doesn't tax either.

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    Re: Changing sales tax exemptions for food

    Quote Originally Posted by Tlrmln View Post
    Or just get rid of the sales tax and increase the income tax rate in higher brackets. Why do we need so many different taxes, anyway?
    For one thing, because there are at least three different levels of government that typically must levy their own taxes. Secondly, just one type of tax would be great if people just accepted that, behaved no differently, and didn't do anything undesirable to avoid taxes. But when you put too much weight on any one type of tax, the incentives mount for significant tax avoidance techniques.

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    Re: Changing sales tax exemptions for food

    Quote Originally Posted by Neomalthusian View Post
    For one thing, because there are at least three different levels of government that typically must levy their own taxes. Secondly, just one type of tax would be great if people just accepted that, behaved no differently, and didn't do anything undesirable to avoid taxes. But when you put too much weight on any one type of tax, the incentives mount for significant tax avoidance techniques.
    How does one avoid paying income taxes?

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    Re: Changing sales tax exemptions for food

    Quote Originally Posted by Tlrmln View Post
    How does one avoid paying income taxes?
    Work less and derive most of your income from capital gains which is taxed at a lower rate and housing where you can deduct depreciation (which owner-occupiers cannot do).

    Who shall ascend the hill of the Lord? And who shall stand in his holy place? He who has clean hands and a pure heart, who does not lift up his soul to what is false, and does not swear deceitfully. Psalm 24
    "To exercise pressure upon the indigent and the destitute for the sake of gain, and to gather one's profit out of the need of another, is condemned by all laws, human and divine." - Pope Leo XIII

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    Re: Changing sales tax exemptions for food

    Quote Originally Posted by phattonez View Post
    Work less and derive most of your income from capital gains which is taxed at a lower rate and housing where you can deduct depreciation (which owner-occupiers cannot do).
    It's not necessary to have a lower capital gains rate, or to allow deduction of depreciation from rental properties (which, by the way, are often heavily taxed in the form of property taxes).

    And of course, all that requires a certain degree of wealth to begin with.

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    Re: Changing sales tax exemptions for food

    Quote Originally Posted by Tlrmln View Post
    It's not necessary to have a lower capital gains rate, or to allow deduction of depreciation from rental properties (which, by the way, are often heavily taxed in the form of property taxes).
    Capital gains should be taxed (at least) at the same rate as wages, and landlords should get no exemptions that owner-occupiers cannot get.

    Who shall ascend the hill of the Lord? And who shall stand in his holy place? He who has clean hands and a pure heart, who does not lift up his soul to what is false, and does not swear deceitfully. Psalm 24
    "To exercise pressure upon the indigent and the destitute for the sake of gain, and to gather one's profit out of the need of another, is condemned by all laws, human and divine." - Pope Leo XIII

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