General Discussion
In reply to the discussion: Sanders will increase total fedreal taxes with 25 % to pay for his health plan and free college. [View all]DFW
(60,311 posts)It's called "sales tax." If we have both local sales tax AND a national sales tax, who will decide if one offsets the other or what is deductible where? Plus, GST (VAT here in Europe) has turned out to be government heroin. Once instituted, it never remains where it is. No GST starting at 5% will remain there. What started out at around 10% here in Europe is now at or over 20% in most countries. They can't get enough of it, and it never gets reduced. Who does it affect most? The people with the smallest incomes, of course. Let states decide how much they need, and keep the local politicians responsible for their economies, since they have to answer to their own constituents.
Here in Germany, what you pay for gasoline consists of the price of the gas, a big mineral oil tax, and then VAT on top of both the gasoline AND the oil tax. So here you pay tax on a tax. I asked a friend who is a judge on the tax court here if that was even legal, and he said no, but a judge can't actively strike down an illegal statute. It has to be challenged in court before a judge can declare it illegal, and no individual has the time or the money to do bring a case to save the few hundred dollars a year in excess taxes he is paying.