[Vision2020] Sales Tax Not fair to Poor
donovanjarnold2005 at yahoo.com
Sat Sep 2 07:10:35 PDT 2006
those less fortunate families will realize a 1% cost increase each time
go through their grocer's check-out line."--T. Hansen
Actually they experience a 20% tax increase. As a 5 cent tax to a
6 cent tax is a 20% increase.
Poor people also spend a greater percentage of their income on
taxable items, like food and clothing. As much as or more than 50%
Many poorer families only realize taxes through sales tax.
So what this really means is a family of four living on about $30K a
year, will experience a 10% increase in taxes. All so property owners
can get a $600 deduction--Maybe, which I don't think they will really see.
Their property taxes will likely just be increased that amount or more.
What is horrible about this plan is that before the Republicans adopted the
idea of a 20% sales tax increase it was the Democrats plan to raise sales tax
20% for education. So it appears there really is not a difference. Both the Democrats
and the Republicans wanted to steal from you, they just had different ideas what to
do with the money they stole from you.
Tom Hansen <thansen at moscow.com> wrote: >From today's (September 1, 2006) Moscow-Pullman Daily News with a special
thanks to Geneva Farnam.
I am a homeowner, and I suppose I should be really happy about a property
tax cut, but I am not if it would be at the expense of people who can least
No matter how low your income, you have to buy in order to live, and when
you buy, you have to pay the sales tax. It's just not right.
Geneva Farnam, Moscow
And just how does Dale "Comb-Over" Courtney's Brainless Log (BLog) respond?
This is how:
"Let's do the math. Your property taxes will go down $300 for every $100k of
So if you own a house appraised at $200k (the average house in Moscow these
days), then you will save $600 per year.
In order to pay $600 more in sales tax (at a 1% rate), you'd need to spend
over $60,000 per year in items that are taxed by Idaho sales tax.
I don't personally know anyone in Moscow who has that kind of income.
Maybe you do, though.
Bottom line: sales taxes are far less detrimental to the poor than are
property taxes. You can control the sales taxes (choose when/where to buy;
choose not to buy discretionary items; etc). You don't have the option of
not paying your property taxes - taxes that go up without the owner actually
having more income to pay for it."
Nope. Nothing wrong with your math there, C-O.
Question, though: Since this discussion concerns poor people and property
tax, how many poor people do you know who own a house valued at (or over)
C-O further claims that sales tax is a discretionary tax, as its impact is
gauged on the increase or decrease of a person's purchasing habits. You may
be on to something, C-O. Just think how much that poor family's tax
liability would be reduced if they simply gave up food.
The bottom line here is (as illustrated by Dale "Comb-Over" Courtney):
People fortunate enough to own property will realize a tax liability
reduction of "$300 for every $100k of valuation [property valuation]", while
those less fortunate families will realize a 1% cost increase each time they
go through their grocer's check-out line.
Thanks for the math lesson, C-O. And as far as not having the "option of
not paying your property taxes" is concerned . . . well, that's another
discussion for another day.
Seeya round town, Moscow.
"If you are going to take Federal Money, then you need to accept the Federal
- Dale Courtney (December 5, 2005)
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