Wednesday, March 19, 2014
Tax-Hating States Are Totally Fine with Taxing the Poor
http://www.huffingtonpost.com/2014/03/18/sales-taxes-highest-in-st_n_4988216.html. DUE 31 March 2014. Where are the "tax-hating" states located? Why is sales tax actually a tax on the poor? Why do you think Florida has such a high sales tax rate? What are some alternate taxes that would be less of a burden on the poor?
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The tax hating states, Oregon, Montana, Delaware, New Hampshire, and other states states with low tax rates are usually located in eastern part of the United States. Sale taxes are actually a tax on the poor since they are considered a regressive tax, which is a tax that is applied at a fixed amount so it will hurt people with lower income since it will take away a bigger part of their income versus a wealthy person who pays the same amount; the tax will only be a small part of his income. I think Florida has such a high sales tax rate since it has a bigger population, meaning it has more to take care of. Florida is also known widely as a tourist site, meaning Florida is able to take advantage of that and tax high to the people on vacation. Some alternative tax method that would be less of a burden on the poor is to have a set % income tax so that everyone is taxed according to their income. But of course, this wouldn't be fair for the people in the higher class since they are getting "punished" for making more money than the rest of the class.
ReplyDeleteThe main “tax hating” states are located in Oregon, Montana, Delaware, and New Hampshire. There are a few more states that are mainly in the eastern part of the United States with low tax rates. Regressive taxes have fixed amount, so it typically hurts the lower classes because they are spending a bigger chunk of their money when you compare them to the middle and upper classes because, because they have less money to begin with. So basically a wealthy person who makes millions dollars a year will be less affected by the regressive tax than somebody in the lower classes because they have more money than them. One way to solve this issue is to create a progressive tax so that the wealthy are more affected from the taxes than the poor. This would be considered unfair though because the rich will think they are being punished for having more money than the poor. But in this economy, we need more people from the lower and middle classes to buy more so that our economy can flourish. Florida is one of the biggest tourist sites in the United States, and we are also one of the biggest states as well, so we have a lot to accommodate for. Florida can use this to their benefit because they can tax the tourist more to get more money.
ReplyDeleteThe tax-hating states are primarily located in the south, southeast region of the United States. Sales taxes are primarily a tax on the poor because food, clothing and other goods tend to make up a higher percentage of a poor persons income than they do a rich persons. States with high sales tax attempt to negate the expenses on purchases by lowering or removing taxes on homes and land. However, poor people are less likely to own homes and land, so in the end, they end up at a disadvantage. Ranked at #29, I don't think Florida really has too high of a sales tax. However, the factors keeping Florida from having 0 sales tax is the fact the Florida is in constant need of improvements in infrastructure, Medicare, and other projects that require government spending. Also, Florida attracts many tourists and can benefit more with a higher sales tax due to the fact tourists buy goods and services, not land and homes. An alternative tax system to alleviate some of the burden put on the poor would be to create a progressive tax system. If everyone were taxed based on their income levels and state legislation quit giving tax breaks to big companies that don't create jobs, then the lower and middle class would be able to grow and benefit the economy.
ReplyDeleteThe "tax-hating" states can be found in Southeastern U.S.A. Sales taxes are really taxes on the poor mainly because a large portion of the poor's income is spent on food, clothing, shelter, and other necessities. It's not so much a burden on the rich because a much smaller portion of a rich man's income is spent on the bare necessities (Jungle Book reference because I'm feeling nostalgic). I think Florida has such a high sales tax because it just so happens to be a vacation destination. People come to Florida for the beaches, the shops, the restaurants, and everywhere these tourists go, they bring their wallets. With this in mind, Florida places a high sales tax to up the state revenue from all the tourism shopping as well as the regular state spending. However, a more efficient system is required to fix the economy, and as it's been said time and time again (and above my comment), Floridian legislation (and US legislation) need to stop giving tax breaks to big companies in the hopes that the CEOs create more jobs, when in reality they just give some big bonuses to their top employees. If a perfectly executed income tax system was utilized, the economy would see a huge boost and the amount of poor would be minimized.
ReplyDelete**Eastern U.S.A. and not Southeastern U.S.A.
DeleteThe "tax-hating" states come from the South historically, but the map actually shows us that the least taxed states are in the east, AK, HI, and various midwestern states. The maps illustrates a clear contradiction of morals to the South. They are the heaviest in hatred of taxes historically (and politically today) yet four of the five most taxed states are in the South. This is because the rich people of the South become the ACTUAL voice of the South while poor's voices become muffled and suppressed. The contradiction is rooted from the rich's tendency to tax the poor. They often do so through sales taxes. That's why these details on the map become apparent in the South. I do think Florida has a somewhat high sales tax rate for both good and bad reason. It's kind of bad because taking money away from people reduces consumption and investments. However, tax revenues, if properly utilized, should be appropriately reinvested into state infrastructure, education systems, welfare, and more that would have a similar effect of giving money back to the people anyway. In terms of the poor, the tax that would have the least effect on them would be an increased income tax. Take more money out of the poor but even more money from the rich that could be reinvested from the bottom up.
ReplyDeleteThe Four states, Oregon, Montana, New Hampshire and Delaware, collect no sales taxes at all. Leaving few other options available to pay for things like roads and schools, states have been forced to boost sales taxes, a form of revenue generation generally considered regressive -- meaning it hurts poor people the most. The cost of food, clothing and other purchased goods tend to make up a higher percentage of a low income consumer's budget than for people with higher incomes. The poor are also less likely to own property, and thus less likely to benefit from lower tax rates for homes and land. I honestly believe that if you can not tax people just because they earn more. So because they worked hard, and found a way to make good money, you are jealous and want them to be taxed more than you because you decided that 20$/hr was good pay?
ReplyDeleteThe tax hating states are primarily located withing the eastern portion of the United States. The states, Oregon, Montana, New Hampshire, and Delaware, hold a common hatred of taxes in the past as well as the present. Sales tax is actually a tax on the poor due to the fact that few other options available to pay for things like roads and schools exist, essentially forcing states to boost sales taxes, a form of revenue generation that is generally considered regressive -- meaning it hurts poor people the most. This is primarily caused by the fact that the cost of food, clothing and other purchased goods make up a higher percentage of a low income consumer's budget than for people with higher incomes. This fate is coupled with the notion that the poor are also less likely to own property, and thus less likely to benefit from lower tax rates for homes and land. I think the reasoning for Florida having such a high sales tax rate stems from its bigger population, meaning it has more to take care of, (including of course more poor people). The high sales tax may also be due Florida serving as a hotbed for tourism, in turn making the collection of an exceptionally high sales tax rate very enticing. An alternative tax method that would be less of a burden on the poor is to create a set income tax so that everyone is taxed according to their income. This would foster a much healthier environment for the poor people as everyone would be taxed based on their income levels, conversely causing state legislation to abandon its practice of giving tax breaks to big companies that don't create jobs. This change would ultimately allow the lower and middle class to grow and benefit the economy.
ReplyDeleteThe Tax-hating states are Oregon, Montana, New Hampshire, and Delaware. The other states with low taxes are in the eastern area of the U.S. Taxes are on the poor because the poor has to pay for necessities such as schools and roads and things of that nature. Also taxes hurt the pockets of the poor more than anyone else because they don't have the money to just fork out. A richer person wouldn't worry about taxes because they have the money to pay it without even blinking. I think Florida has such a high sales tax because the population is larger since its a place people come to after retiring. Florida is also a big tourist area as well so I believe that Florida has to keep up the state causing the taxes to be much high. I believe a way to lessen taxes on the poor is by making so that all taxes are based off of income.
ReplyDeleteWhen looking at taxing in the United States, the "tax hating" states can be located in the South or Southeastern part of the country. When speaking about sales tax, the poor are especially affected. Since sales tax is not proportional to the payer's income, it is a larger part of the poor's income than it is of more wealthy people. Florida probably has such a high sales tax because we don't get as much government help, so we must make the money some other way. Some taxes that we could have that may not burden the poor as heavily would be a progressive income tax. That way the poor and the rich would be taxed proportionally to their income.
ReplyDeleteThe tax-hating states consist mainly of states originating from the south and southeast. Sales tax is predominantly a tax on the poor due to the fact that the poor's expenses focus on the bare necessities, including food, clothing, and the like. The rich, on the other hand, do not spend the bulk of their income on such items, therefore avoiding the severest of implements of sales tax. Florida may have such a high sales tax rate because of one of its biggest revenue resources: tourism. Since tourists are known to spend big bucks on souvenirs, food, and many other little things, Florida hikes up its sales tax to make maximum profit out of these beach-goers. I feel that the "fairest" (if there exists such thing as "fair") taxation system is one where the level of taxes depends on one's income. Basically, the rich pay more and the poor pay less. This is the best way to prevent the poor from becoming poorer from excessive taxation. I mean, we can't neglect the fact that if the poor lose all their money to taxes, then there will no longer be as much money invested into the economy, and the business cycle can show us the negative consequences of that dilemma.
ReplyDeleteSouthern states hate taxes. Many people in the south think only the sales tax should exist. I don't think sales tax is a tax on the poor. It's at the most a dime on the dollar and usually about a nickel on the dollar though one could argue it's a fixed rate where other taxes are not, such as income tax which is a percentage of income rather than percentage of a fixed price of a good. Florida is actually number 29 on that map and is below the median sales tax of the USA. In the US, lots of poor people still own a home so property taxes would still burden the poor greatly. Income taxes burden the poor because they can't pay off their debts if they are still paying taxes they can't afford. Sales tax being fixed however, maxes it easy to see what you can and can't buy. There is no tax on food in grocery stores and so just about everything else with a sales tax is not a necessary good. If poor people buy only what is necessary, then they don't even need to deal with sales tax outside of a car and kitchen appliances. While I do think 10% is a bit high for a sales tax, a sales tax seems to me to be the one that doesn't affect the poor a much as other taxes do. Sales taxes affect the rich more because the rich are the ones who buy more things that involve sales taxes.
ReplyDeleteThe “tax hating states are mainly located in the eastern part of the United States. The sales tax is actually a tax on the poor because it is considered a regressive tax, meaning it will hurt the ones with a lower income. A wealthier person would pay the same amount every month, whereas the ones with a lower income will have a big chunk ripped out to pay. The bigger population in Florida could be why the sales tax is so high when comparing it to other locations. Although it works out in Florida’s favor when the tourists come to visit the area. Some alternate taxes that would be less of a burden on the poor would be to have the income tax be one specific number give to specific incomes. This way it is fair for everyone. If they have enough money to pay a higher price, than they should.
ReplyDeleteThe "tax-hating" states are mainly located in the south. With few other options available to pay for things like roads and schools, states have been forced to boost sales taxes, a form of revenue generation generally considered regressive -- meaning it hurts poor people the most. The reason why Florida has a high tax rates is that Florida is a place where millions of people come each year for the beautiful beaches. The state needs to spend the collected tax money on the public services to make sure satisfaction is met for every tourist. A way to make taxes less of a burden on the poor is to tax people according to their income. For example, people who make less than 20,000 a year will not have to pay sales taxes at all.
ReplyDeleteThe tax-hating states are located mostly in the south. Sales tax is actually a tax on the poor because money spent on food, clothing, and other necessities tend to make up a higher percentage of a low income consumer's budget than for people with higher incomes. So with states having so few options available to pay for things like roads and schools they’ve been forced to boost sales taxes which acts as a form of revenue generation that in turn, hurts poor people the most. Being that the poor are less likely to own property, lower tax rates on properties don’t benefit them. We have such high sales tax rates in Florida because of our massive population and tourism. An alternate tax that would be less of a burden on the poor would be a progressive income tax.
ReplyDeleteThe main “tax hating” states are located in Oregon, Montana, Delaware, and New Hampshire. There are other states that dislike sales taxes, but they have them still. Although very low, these states have chosen sales tax as a form of extra revenue for their state governments. Sale taxes are also said to be a tax on the poor, which in my opinion they are. Sales taxes are said to be so because they are imposed at a fixed amount. A person who makes a small amount of income and a person who makes a large amount of income pay that same amount. The poorer person takes a larger toll on their income with sales taxes. I think that Florida has such high sales tax rate because of its larger population. The image also shows that states with large populations also have exceedingly high sales tax rates, such as New York, Texas, and California. These states use the money earned from sales taxes on vital things for the population, such as roads and other governmental resources.
ReplyDeleteSome alternate taxes that would be less of a burden on the poor are income taxes. Income taxes tax individuals according to how much they make a year. Those who make a higher annual income are taxed more, and those who make a lower annual income are taxed less. More forms of income taxes as opposed to a higher sales tax rating would greatly help the poor in large states in America. It would help reduce the huge income inequality gap a small bit. I personally think that sales tax should not be eradicated, but it definitely needs to be lowered substantially.
Anita Pizzirani (Pizza)
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For the longest time, the the states against taxes, or the "tax-hating" states, are those located in the south. Ironically however these are the states that have the highest tax rates. Sales taxes is considered a tax on the poor because most of a poor person's income is spent on necessities. These necessities include groceries, clothing, gas, etc. For a person with a low income, the sales tax has a greater impact on their bank account compared to someone with a higher income. A rich person and a poor person could purchase the same exact item but it would have a larger effect on the poor person. (Just to reference what we've learned thus far- This is prime example where opportunity costs fall into play. Poor people rather buy cheaper commodities because it will take longer to replace the money than a rich person) Florida has such high taxes for two reasons in my opinion 1. Tourism and 2. Elderly people. Tourism is pretty obvious, people visit Florida year round for the beaches and sunny weather, so higher sales taxes reap more profit. Easy. In addition, elderly people move down here to retire, once again for Florida's great weather and vacation-like lifestyle. I think the higher sales tax slowly squeezes as much money out the elderly people before they go. (Which is wrong, but that doesn't mean it is not true). Income related taxes would be beneficial to the poor but i believe more tax breaks to the poor would also have positive results. At first, the lower classes would save their money instead of spend like we would want. But once there is a consistent flow and people don't have to worry about how they will survive until their next paycheck, then people will spend more and get the economy back on its feet.
ReplyDeleteThe tax-hating states consist mostly of states originating from the south and southeast. Sales tax is a tax on the poor due to the fact that their expenses focus on the bare necessities, including food, clothing, and the like. Since the rich do not spend the bulk of their income on such items, they are avoiding the severest of implements of sales tax. Florida may have such a high sales tax rate because one of its biggest revenue resources is tourism. Since tourists are known to spend big bucks on souvenirs, food, and many other little things, Florida hikes up its sales tax to make maximum profit out of these beach-goers. I feel that the most fair taxation system is one where the level of taxes depends on one's income. Basically, the rich pay more and the poor pay less. This is the best way to prevent the poor from becoming poorer from excessive taxation. I mean, we can't neglect the fact that if the poor lose all their money to taxes, then there will no longer be as much money invested into the economy, and the business cycle can show us the negative consequences of that dilemma.
ReplyDelete