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Old June 13th, 2018, 09:32 AM   #11
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Originally Posted by Supposn View Post
R<snip>
For lower-income families, clothing is among their lesser expenses. Proportional to personal (rather than business) expenditures, clothing is a greater amount and proportion of wealthier families, rather than for lesser income families' spending. Sales taxes should not be waived for clothing.

Respectfully, Supposn
Wrong. And they buy necessary clothing, not designer crap like the rich. Regressive, regressive regressive.
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Old June 13th, 2018, 09:40 AM   #12
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Originally Posted by Supposn View Post
In post #41, within the thread, “ Sales taxes are not a regressive tax. ”, Right to Left questions why I propose reducing employer's FICA and SECA taxes upon payrolls. (He does not question why I propose those taxes should be equally reduced for both employers and employees.)

Beyond what the federal minimum wage or any other expenditures that an enterprise is legally required to pay, (such as the federal minimum wage rate), the distribution of their revenues is to their managements' discretions.
Enterprises directly and indirectly participate within competitive markets. They consider their prices within sales markets and their costs within their labor or other supply markets.

I suppose enterprise's “normal” expenditures are generally passed on to customers, but there can be limits to their ability to do so. Enterprises try to pay no more than the wages they consider as needed to recruit and retain their labor forces. If there was no corporate income tax, it would be much more difficult to enforce our taxes upon individuals personal incomes. It is for that, and only that reason, I'm opposed to eliminating corporate income taxes.
I suppose effectively the entire taxes levied upon employers that are based upon their payrolls, are actually passed on to the employers' customers. They behave effectively as a sales tax.

It would be politically much less feasible to reduce employees FICA taxes and not similarly reduce those taxes levied upon employers. Because half of the combined rate of payroll tax reduction is transferred as a sales tax, and employers reduce their taxable income for any kind of business expenses, and the remainder of their “normal” expenses are generally passed on to their customers, there's admittingly little net direct benefit to employees or to employers;
BUT tax revenues have been somewhat increased for funding Social Security and Medicare.
Employees are the greater beneficiaries of those programs; proportional to their incomes, the working-poor are the greatest beneficiaries of those programs.

Respectfully. Supposn
I've told you before when you keep raising your payroll tax threads: I live in Canada, and we have similar..though not identical systems as the US, so I'm not interested in the ins and outs of your payroll tax system! Whre I come in is where you assert that "sales taxes are not regressive." An

And my objection is replacing FICA with a sales tax...which seems to be the direction you intend to steer towards, but will never answer why a national sales tax (like Canada) but not increased income or corporate taxes to fill the revenue void?
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