[K-oneTexas]

... People will not accept a 30% sales tax ..."

What I don't hear people saying or realizing is that with an income tax you have that %age taken out of your income before you see it.

Lets look at 2008 rates:

Medicare is 1.45% (up to $102,000)

Social Security is 6.25% (up to $102,000)

Income tax (under current statute, personal income tax, not corporate or capital gains taxes)

the Federal tax brackets for a single (unmarried) person are:^[1]

• 10%: from $0 to $7,825
• 15%: from $7,826 to $31,850
• 25%: from $31,851 to $77,100
• 28%: from $77,101 to $160,850
• 33%: from $160,851 to $349,700
• 35%: $349,701 and above

So lets say your income is $50,000 the percentage taken out before you see it is:

Medicare     1.45%

S.S.               6.25%

Income         25.00%

Total Rate    32.70%

If you are self-employed you must add in your portion of the S.S. wich is 6.25%. If employed the employer pays this 6.25% (which could be a factor in lower pay scales for working). Then the total is 38.95%

If you make more you get more taken out - a higher percentage.

If you make less,  10% + 1.45% + 6.25% = 17.70%

We could go on and would still have debate. Some people will be happy at 30% cause it is less than what they have taken out now. Other would have more and be unhappy. Then you look at the prebate, etc.

I would rather chose when the government gets my tax dollars ... instead of them chosing.

IMHO, you can't make a flat statement that "people will not accept it", cause some will be happy.

Also, the 23% vs. the 30% is necessary to use if you are comparing anything you must compare likes and speak in like terms.  Apples to apples, not apples to oranges So, compare  Income tax to income tax, not Income tax to Sales tax. Would you actually compare something like, spending time with your wife or lover to going down to Auto Zone and buying oil?

 

[Always Right]

So lets say your income is $50,000 the percentage taken out before you see it is: Medicare 1.45% S.S. 6.25% Income 25.00% Total Rate 32.70%

You don't take into account personal exemptions and deductions and brackets. Someone who earns $50K and has a house and family, will not pay 1 cent of tax at the 25% rate, let alone his whole salary as your analysis implies.

[xcamel]

FIY.. SS, medicare/medicaid are not now, nor have they ever been “income taxes”

[Normal4me]

Excellent post. Let capitalism dictate how much money we send the government. If your product is too expensive you have to lower the cost to sell it. Less revenue going to the government then.

[steve8714]

Mmmmm, Auto Zone.

[Publius6961]

Sorry, but in my math world, your 25% computation is in error, assuming the tax rate table you presented is accurate.

The way I understand your example, there are no brackets...

there are two ways to interpret:

from $0 to $7,825 10%
from $7,826 to $31,850 15%

For a $30k income, the tax is either $4500 (wrong, most likely)
or $4108.75 (more likely)