How do you avoid paying taxes to the IRS?

[2461Badugi]

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I hate to sound patronizing as I respect you, but do you honestly think that any sales tax can be anything but regressive?


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It can certainly be less regressive than you're talking about. For example, I live in a state where the state sales tax isn't applied to groceries and clothing.

[MicroBob]

Metetron - I never took any econ classes so my logic is probably pretty basic on a lot of this stuff.

But I think ANYTHING would be better than the method of "just tell us most of what you did and are doing and then pay taxes on that. If you do this in a way that is smarter than the way other people do it you should be able to get away with paying less than you are supposed to."

[earck]

The Fair Tax is not regressive because of the prebate. You will not be taxed on whatever is needed to keep you above the poverty level, and anyone who thinks that in general poor / middle class people spend more on goods and services than rich people needs their head examined.

[TheMetetron]

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The Fair Tax is not regressive because of the prebate. You will not be taxed on whatever is needed to keep you above the poverty level, and anyone who thinks that in general poor / middle class people spend more on goods and services than rich people needs their head examined.

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Well, that's one idiot. Nothing you said is true. Well maybe like one half of one sentence.

The tax is regressive even if you can rebate enough money for the very bottom to be not worse off % of income/wealth wise then the very top. But as soon as your rebate stops (and it would have to be massive), from that tier upwards the whole thing becomes regressive again.

And the poor/middle class most certainly spend more on goods and services as a percentage of income/wealth then do the rich. A whole hell of a lot more. I spend around 10% of my income per year which is an almost miniscule amount of my wealth. Show me someone making under the median who can do that.

[Bobo Fett]

I think you need to read more carefully...pretty mcuh anyone who has made this point has sad that poor people spend more on goods than rich people in relation to their income. For example, if a person who makes $30,000 per year spends $10,000 on food, clothing, etc, it is unlikely that a person who makes $3,000,000 per year will spend $1,000,000 on those same things. Even if they spend $500,000, which is a LOT of money, they will be paying HALF the taxes as a percentage of income.

Now of course they will spend money on luxury items, etc, but never enough to make up that gap. Also, it will make more sense for the rich to travel and spend money abroad.

Of course this is an extreme example, but I think it points out some of the flaws with the system. Not saying it couldn't be made to work, but it would certainly need some adjustments beyond what you have said.

[Thremp]

I think the whole regressive argument is silliness. Poor people should be paying more taxes as they get more from the government. Taxation is oppressive to me. The poor people get to drive on the same roads, same protections, same freedoms, and even money back at times. Ghey.

[5thStreetHog]

"Taxation is oppressive to me. The poor people get to drive on the same roads, same protections, same freedoms, and even money back at times. Ghey."

LOL