Setting aside the sheer logistical impossibility of financing the federal government through tariffs alone, it is unclear what exactly would be achieved.
Is it regressive though? Multimillionaires don’t pay income taxes at all, they have no income. Elon musk isn’t sitting down in April to fill out a 1040 or a 1099. They pay capital gains and other rich people taxes. With a consumption tax like a tarriff they’d at least be paying something even if it’s a lower percentage of their wealth than yours or mine.
Multimillionaire do not, no. The ultra rich either have no income, have negligible income, or are compensated in ways that aren’t subject to income tax. That’s why there should be a wealth tax and sensible capital gains tax.
I agree. But wealth taxes aside, assuming the middle and lower classes end up paying about the same as they do now, the wealthy will pay more under a consumption tax (as in, more than the nothing they pay now).
Not most of their money, no. Way more than I spend on goods. Exponentially more. I have no faith that the current admin will pull this off in a way that benefits the 99% but it’s not outside the realm of possibility that some form of consumption tax would. It doesn’t have to be regressive.
There is literally no way to put a flat tax on goods without it disproportionately effecting poorer people unless it is exclusively on luxury goods they are not buying
And yet, if it replaced income tax, it could affect the wealthy who are currently paying nothing. It’s not a perfect solution. If implemented right, it could be an improvement over the current one.
Ok, so yes, more ultra rich may pay a little more tax than they would with income tax. But, the much more important part here, the poorest people will ALSO pay more in taxes, money that they do not have to spare. That is what makes it regressive.
Is it regressive though? Multimillionaires don’t pay income taxes at all, they have no income. Elon musk isn’t sitting down in April to fill out a 1040 or a 1099. They pay capital gains and other rich people taxes. With a consumption tax like a tarriff they’d at least be paying something even if it’s a lower percentage of their wealth than yours or mine.
Multimillionaire do not, no. The ultra rich either have no income, have negligible income, or are compensated in ways that aren’t subject to income tax. That’s why there should be a wealth tax and sensible capital gains tax.
I agree. But wealth taxes aside, assuming the middle and lower classes end up paying about the same as they do now, the wealthy will pay more under a consumption tax (as in, more than the nothing they pay now).
Marginally. They don’t spend most of their money on goods.
Not most of their money, no. Way more than I spend on goods. Exponentially more. I have no faith that the current admin will pull this off in a way that benefits the 99% but it’s not outside the realm of possibility that some form of consumption tax would. It doesn’t have to be regressive.
There is literally no way to put a flat tax on goods without it disproportionately effecting poorer people unless it is exclusively on luxury goods they are not buying
And yet, if it replaced income tax, it could affect the wealthy who are currently paying nothing. It’s not a perfect solution. If implemented right, it could be an improvement over the current one.
Ok, so yes, more ultra rich may pay a little more tax than they would with income tax. But, the much more important part here, the poorest people will ALSO pay more in taxes, money that they do not have to spare. That is what makes it regressive.
That’s a good point. I forgot there were people who weren’t paying any income tax at all at the lower end of the wealth spectrum.