The debate "Income Tax should be abolished" was started by
March 8, 2016, 3:15 pm.
8 people are on the agree side of this discussion, while 18 people are on the disagree side.
People are starting to choose their side.
It looks like most people are against to this statement.
Neil537 posted 10 arguments to the agreers part.
RyanWakefield posted 1 argument, Sosocratese posted 5 arguments, PoliticsAsUsual posted 4 arguments to the disagreers part.
MrShine, Neil537 and 6 visitors agree.
PoliticsAsUsual, PsychDave, RyanWakefield, Sosocratese, vipul, ReadyToBegin and 12 visitors disagree.
So, I'm going to sum up your argument here and see if we can't figure out what's wrong with it.
You want to eliminate $3.25 trillion dollars in revenue. You don't want to increase sales tax in order to make up for the lost revenue. You have no data or studies that show a spending increase of about 400% in order to make up those losses. You have no evidence to support that this will actually produce positive growth of the economy. You don't address the study I presented to you that shows a negative economic growth with the elimination of the income tax. You haven't addressed which programs you would eliminate due to the budget deficit you just created....
This seems like an extremely poor plan/argument.
unless you can tell us where a better place to tax is your idea is a bad one. you want to cut a massive source of revenue with absolutely no idea how to replace it. there is no way we could support that.
i dont support a hike in service tax either but i speak for the abolishment of I-T
1. if we assume you are raising sales taxes enough to match the lost revenue then spending power will be severely reduced for the lower and middle class. only the rich will have more buying power. so in total it will be much worse. there are much better ways to go after tax evaders.
2. the reason certain sectors are exempted is because they require government assistance. whether or not you approve of that is irrelevant for this debate. the support of those industries would continue in some other form. so you aren't saving anything.
3. you are just transferring where they pay their taxes. it wouldn't really affect the utility of work. it woukd just make it impossible to survive if you are poor because the price of everything would be hugely increased while their income only rises marginally.
4. I don't see how this is related. we can tax these things without getting rid of income tax.
1.No income tax means more spending power, more demand, more manufacture, more jobs. In short, a faster growing economy Income tax leads to tax evasion as people don't declare their true income. Estimated figures of black money stashed overseas run into a mind boggling figure of $500 billion. If there is no income tax there will be no need to evade tax!
2.Abolition of I-T will mean that everyone will pay taxes. Why should agricultural income continue to be exempted?
3.No income tax will mean a greater incentive to work, after all, a large chunk of our salary or business profits goes towards payment of taxes plus the utilization of our taxes is shrouded largely in mystery
4.Certain habits can be curbed through elective use of the indirect tax weapon, such as very high taxes on fuel guzzling imported cars. Don't we all crave a greener world?
>The cost of collecting income tax is higher (more than 0.65% of the revenue collected), whereas even as no statistics are available owing to the indirect tax levy being collected both at central and state level, the cost of indirect taxes collection is assumed to be much lower.
Where are the facts to support your claims. Can you back up your claims with economic studies?
Studies like this seem to contradict your point and actually claim that cutting back the income tax too far would likely lead to a negative economic growth.... Can you please explain what you're basing your opinion on?
even if more poor people got jobs, which I don't accept, they would still be hit alot harder by your new taxes then the ones that are currently in place. it would be an economic catastrophe.
that sounds good but it doesn't work. the extra money will likely wind up in a savings account or the stock market.
trickle down economics does not work. we've tried it for decades and it killed our economy.
no it will not hurt poor because i have already mentioned that employnent will also be created so poors will get an opportunity to work and earn money
but we've already explained why that isn't true. you would have to increase sales tax by 400% to compensate for income tax. since poor people don't pay much income tax, because their income is low, it would hit them much harder than rich people. your plan would benefit the rich and hurt the poor.
see even if a street hawker is earning money by working hard whole year and he has to pay income tax from that earning then it will be injustice to him as he is the one who worked so hard then why his money should be given to govt. the money that he earned and paid to govt. could have been helped him with his sufferings and secondly unlawful activities of the people hiding their money due to irregular income taxes is injustice with the country so if there will be no income tax then that money will come in mainstream and that i am saying again and again. service sector is flourishing day by day. Not everyone is paying tax but everyone is surely purchasing something each nd every second so govt can be benefitted from that.
So, under your plan, what how much revenue will we gain in sales tax Vs how much you loose from income tax. How do you make up that difference and/or which services do you cut?
In 2015, income tax accounted for $3.25 trillion of revenue. Sales tax from all states combined was just shy of $800 billion. So, you'd have to quadruple the sales tax revenue just to break even. That would be a bold claim seeing that a large percentage of the county's populous would only gain marginal spending power through income tax elimination. You are essentially counting on the richest people to contribute $2.4 trillion in additional sales taxes annually....
we understand your idea, but do you plan to make up the difference in tax dollars through different taxes? or do you plan on cutting services?
my main idea is to bring the money which has been hidden from a long time so that the economy can be benefitted and Income tax is the constraint Whichbmakes people to hide their money
No because sales tax wont make people to hide their money but Income tax does
yeah. your idea sounds like it would discourage people from spending their money because it will be taxed heavily. therefore hurting the economy.
then wouldn't you prefer to increase the income tax and eliminate sales tax in order to motivate people to spend their money?
i am bothersome for the citizens as i mentioned the main idea is to bring the dead money into life by keeping it in a cyclic process instead of burying or hiding it. there are a no. of taxes already levied on the people . if income tax is there then why professional tax is there??
i mean just abolish one tax and let the GST be enacted i dont find any sort of shortcomings in this idea.
You have yet to address the revenue stream problem. Even if we grant you that there will be significant private sector growth, you still have to make up that revenue stream. Otherwise you end up with a state which cannot enforce the laws it has, cannot defend itself, cannot care for its citizens, etc...
It is not trickling the economy it is for betterment of economy i.e. making money from the money itself and america followed capitalism and their economy fallen Russia followed communism they also fallen so better is we must follow mixed economy
so, trickle down economics?
we tried that for decades, that's the reason America is dying.
it is the basic human tendency that the more we stop the person to do anything the more they act upon it. See if a person is not hiding his money then somewhere he is surely going to spend that money be it in purchasing a vehicle ,jewellery etc. If the person buys a vehicle then the owner of that company will be benefitted and in turn its workers will be benefitted and this cycle will go on. Now consider that if govt allows all those people to bring their black money from swiss bank without any tax levied onto it and deposit it in the banks of our country then our banks will be benefitted and the investments in share market will increase. Everyone will come up with their money in the market so economy will increase.
firstly income tax is one of, if not the highest sources of revenue for a government. so eliminating it would require huge tax increases in other areas.
secondly your whole argument is to allow criminals (tax evaders are criminals) to get away with their crimes by legalizing it. that isn't a very good argument.
you should simply do better investigations of tax evaders and increase penalties for them so less people will try to hide their money.
I suggest thatbincome tax should be abolished so that the money which has been buried and hidden by the people can come in light and can be in the mainstream of development. Due to fear of income tax people hid their money and a money in static state is of no use rather if it is kept in the bank then bank would lend that money to a person he might open up an industry that industry will create jobs thus that money will keep revolving and monry will be made out of money but due to fear of Income tax people dont show their complete wealth rather they pretend poor as much as they can which provides false data for the statistical department of india. Remove the income tax and see the change in econony and as there are already several taxes levied so govt can earn from that.
So, how would you propose we service our debts? How about the military? Do you have a plan to come up with $600 billion for just military spending? How about paying for the care and benefits of our vets? How about infrastructure? How do you propose we pay our politicians? How about our national parks? National forests? BLM Land? Federal law enforcement agencies? These all cost money....
Income taxes are necessary.
and have no emergency services?
modern societies require large amounts of money to function. income taxes, as a percentage of your earnings are one of the fairest was of taxing. where would you propose the government get their revenue if not that?
and replaced by...?