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Volaris

(11,594 posts)

21. Why cant we just legalize a definitional distinction between income and wages?

Reply to comradebillyboy (Reply #3)

Sat Feb 1, 2020, 08:08 PM

Feb 2020

The first hundred K you're paid (or that you pay yourself for running your small business) is NOT TAXED, as its wages you're paid in exchange for your valuable LABOR.

Anything that kicks that amount ABOVE 100K per year is income, and is taxed starting 10%, on a progressive calculus curve.

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How a VAT could tax the rich and pay for universal basic income [View all] redqueen Feb 2020 OP

Never count on the rich Cartoonist Feb 2020 #1

It also hits companies who currently avoid federal taxes altogether. redqueen Feb 2020 #2

It wasn't just one item. Cartoonist Feb 2020 #8

VAT alone is regressive. VAT+UBI is very progressive. nt redqueen Feb 2020 #9

In the EU the value added tax is about 15%. It's a sales tax so it comradebillyboy Feb 2020 #3

Businesses sell to each other as well. Many very profitable businesses do not pay any federal taxes redqueen Feb 2020 #7

"Value added tax is a consumption tax because it is borne ultimately by the final consumer. comradebillyboy Feb 2020 #10

In theory yes. In practice no. redqueen Feb 2020 #11

The point is that most of it then comes back to everyone via the UBI muriel_volestrangler Feb 2020 #13

In the US we have neither UBI nor VAT. Good luck enacting a comradebillyboy Feb 2020 #14

You don't have Medicare for All, either muriel_volestrangler Feb 2020 #16

What you say is true. PETRUS Feb 2020 #17

Yes, I prefer separate taxes for the financial industry issues. redqueen Feb 2020 #18

Yeah, I also think an FTT is a good idea. PETRUS Feb 2020 #19

Thanks! redqueen Feb 2020 #20

Why cant we just legalize a definitional distinction between income and wages? Volaris Feb 2020 #21

Because lobbyists. redqueen Feb 2020 #27

Thanks for the info. safeinOhio Feb 2020 #4

One wonders why we don't already have it, since it hits businesses so effectively. redqueen Feb 2020 #6

I imagine a lot of voters wouldn't be in favor of a national sales tax on everything they buy? MichMan Feb 2020 #12

It can be tailored to exempt necessities redqueen Feb 2020 #15

If it were SPECIFICALLY APPLIED to paying off the national debt, I'd be in favor of that. Volaris Feb 2020 #22

Do you think it would be a winning issue for a campaign? MichMan Feb 2020 #23

The gop makes hay out of the national debt n deficit whenever a democratic occupant Volaris Feb 2020 #24

Right? redqueen Feb 2020 #25

That won't help people. redqueen Feb 2020 #26

This message was self-deleted by its author Cartoonist Feb 2020 #5

I don't know where Brookings are coming from in saying that VAT is a "progressive" tax. The rich OnDoutside Feb 2020 #28

Read it again - VAT + UBI progressive redqueen Feb 2020 #29