FXLAX

Sorry, didn’t explain it well enough. The current fair tax legislation in Congress would replace all federal taxes (except excise taxes) with a flat 23% inclusive (30% exclusive) sales tax on all new goods and services, which includes a “prebate” that would “untax” everything up to the federal poverty line. That percent is what would be revenue neutral. What I’m saying is that California, or any state, can do the same. Calculate the sales tax percentage that would be applied to all new goods and services that would be revenue neutral when replacing all other taxes levied at state level.

But I agree with the sentiment that California already taxes it’s residents too much and has too much spending.


I don’t know how else to explain this other than that by fair, I mean that since it applies to you the same way it applies to anyone that did the same thing you did at the same time you did (buy a house the same year you did), it’s fair. It’s the same way it was fair to that lady who bought her house the same year her neighbor did. Maybe she complained that the neighbor that bought a house years before hers getting the same services she is for 10 times less?

Let me just add, I understand the argument you are making and I’m not unsympathetic.
I don’t believe it’s the best way to collect tax revenue. I’m just saying that it’s fair on how it treats people in the same position. If it was up to California, they would get some state employee or build a whole new bureaucracy of people to asses every single structure every single year in order to maximize state revenue. So now everyone one pays an inflated tax assessment. So instead of least being insulated until you sell/buy another house, you know get to pay more and more every year as your property value goes up.

Like I said before, I rather we use the price that someone ACTUALLY paid than what some government employee thinks someone would pay and then keep making that guess every single year while I have to re-litigate that battle every year against that bureaucracy if, no, when I disagree.

Actually, I would prefer a Fair Tax system at the state level.

Heavyflyer

Considering getting a rental apartment and an airport car in LAX.

Can I keep my current car registration (TN), or will I get flagged for it?

What's the best way to keep off the taxman radar?

full of luv

For the record if you live in North Florida you pay $0 tolls and $320 to register 4cars, Seadoo, boat and two trailers ..... for 2 yrs!

Profane Kahuna

The link you provide said the sales tax would be 30% ?

Profane Kahuna

I think you are arguing with wrong person.

Profane Kahuna

Ok, thanks for the explanation.

Chris99

Like FXLAX explained, that is the exclusive rate, not the inclusive rate. If you look at the actual language in the bill (HR 25), it says 23%, although your true tax rate is determined by how much you actually consume after the prebate.


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Profane Kahuna

Maybe their website is wrong?

“What will the rate of the sales tax be at the retail counter?

30 percent.

Sales taxes, are generally quoted tax exclusive: I bought a $77 shirt and had to pay that same $23 in sales tax. This is a 30-percent sales tax. Or, I spent a dollar, 77¢ for the product and 23¢ in tax.

This rate, when programmed into a point-of-purchase terminal, is 30 percent. “

Blue Dude

Sales taxes are exclusive but income taxes are inclusive. Both are quoted so you can compare apples to apples.

Galaxy5

I guess if equitable enforcement of a law is your only measuring stick of fairness, then yeah, I guess that’s “fair” but a very myopic view.

The simplest way to think about it in my mind is like tuition for public school. We have one of the best public elementary schools in Sacramento walking distance from our house. We’ll pay $5500 a year to send our daughter there, she payed a few hundred a year to send her son to the same school. Because she was lucky enough to be born in that house.

So the difference is the greater good or the individual.