Sales tax question
#1
I was reading the news for Roseburg and I saw this,

http://www.kpic.com/politics/Is-it-time-...61252.html

regarding if it was time for a sale tax in Oregon. The sad part is if they can get it to pass in the Portland, Salem, and Eugene area, it will pass for the whole state. But they are saying they will not charge sales tax on food, prescriptions , or utilities . It would also cut capital gains tax and the corporate tax. It also calls for cutting property tax (those that rent would get a rebate not sure how that would work) and income tax in half.

Is it a good idea? Would you vote for it? Do you see it as more of a fair tax meaning that everyone has to pay it?
Reply
#2
(12-09-2012, 06:33 AM)blondemom Wrote: I was reading the news for Roseburg and I saw this,

http://www.kpic.com/politics/Is-it-time-...61252.html

regarding if it was time for a sale tax in Oregon. The sad part is if they can get it to pass in the Portland, Salem, and Eugene area, it will pass for the whole state. But they are saying they will not charge sales tax on food, prescriptions , or utilities . It would also cut capital gains tax and the corporate tax. It also calls for cutting property tax (those that rent would get a rebate not sure how that would work) and income tax in half.

Is it a good idea? Would you vote for it? Do you see it as more of a fair tax meaning that everyone has to pay it?

I bet that if/when they do impose a sales tax, they will also figure out a way to keep the other taxes high as well.
Reply
#3
that would be my guess also, but I am just going on what they were saying in this article which I am going to assume is going to get the people to vote on it. And most of the people in the area do not want it. But like I said if they can get it to pass in the Portland area and Salem and Eugene it will pass, and they are all ready saying it will be for the children.
Reply
#4
We pay a very high rate in state income tax to make up for no sales tax
Reply
#5
So far, Oregon voters have turned down a sales tax NINE different times. Good luck with this proposal. Smiling
Reply
#6
I would vote for a 5% sales tax if the income tax were reduced to a 5% maximum. The state should not get involved with local property tax because that funds local services and is controlled locally by the voters. However, I would not be adverse to the state picking up more of the funding for the local DA's offices and juvenile services. Everyone would pay a sales tax. Right now, we have too many people not paying income tax so the burden is becoming greater on those working and the number of freeloaders has grown significantly.
Reply
#7
I'm not a native Oregonian and try to respect my fellow citizens decisions but in this case I would support a sales tax, however unpopular, IF the income tax were lowered. As retirees, we pay hardly any income taxes; just property taxes. I would gladly pay a sales tax to help maintain our roads, schools and first-responders.
Reply
#8
I have lived in states that have had sales tax and not had sales tax, and then had state income tax as well, and then a combination of both. When we moved to Oregon it was a shock to us how much we paid out in income tax and how little services we received and how much we always heard about the state needing money. Now with a sales tax some of that could be taken off the workers. Also with a sales tax with all the tourist that come in they can pay a little something. What will have to be decided is how the sales tax will be distributed, will it stay county by county or will it be distributed per capita. There would be a lot of questions that would need to be answered. I know my daughter who lives up there said she would vote for it, if they lowered the income tax because she can see the benefits of it.
Reply
#9
Sales tax is generally agreed to be a regressive tax; that is, lower income people end up taxed a greater percentage of their income. While it has been suggested that one can mitigate this to some extent by not charging sales tax on food and clothing, it still doesn't solve the issue entirely.

See the chart here, for an explanation of why sales tax is regressive: http://nontrivialpursuits.org/sales_tax.htm


As to tourists, they already pay taxes. Any money they spend in Oregon is subject to income tax. If they stay at a lodging, buy gas, lottery tickets, alcohol, or cigarettes, they pay additional tax as well.
Reply
#10
(12-10-2012, 08:37 AM)csrowan Wrote: Sales tax is generally agreed to be a regressive tax; that is, lower income people end up taxed a greater percentage of their income. While it has been suggested that one can mitigate this to some extent by not charging sales tax on food and clothing, it still doesn't solve the issue entirely.

See the chart here, for an explanation of why sales tax is regressive: http://nontrivialpursuits.org/sales_tax.htm


As to tourists, they already pay taxes. Any money they spend in Oregon is subject to income tax. If they stay at a lodging, buy gas, lottery tickets, alcohol, or cigarettes, they pay additional tax as well.

But what about the gifts they buy and at the restaurants etc . When people buy cars, furniture.

But back to the taxes, but to be honest there will never be a "fair" tax plan there will always be someone that feels that they pay more than they should and that others should pay more. And yes truthfully 5% will cost more to a person making $10,000.00 than a person making $15,000.00, and it will cost the person making $25,000.00 less. But you know what, life isn't always about fair. You want police protection, you want good roads, you want good schools, you want the fire department to show up, you want services they have to be paid for.
Reply
#11
(12-10-2012, 08:37 AM)csrowan Wrote: Sales tax is generally agreed to be a regressive tax; that is, lower income people end up taxed a greater percentage of their income. While it has been suggested that one can mitigate this to some extent by not charging sales tax on food and clothing, it still doesn't solve the issue entirely.

See the chart here, for an explanation of why sales tax is regressive: http://nontrivialpursuits.org/sales_tax.htm


As to tourists, they already pay taxes. Any money they spend in Oregon is subject to income tax. If they stay at a lodging, buy gas, lottery tickets, alcohol, or cigarettes, they pay additional tax as well.

All taxes and regulatory costs to business are passed on to the consumer. That makes them all regressive and affecting the poor the most.
Reply
#12
One thing about a sales tax, and also value added taxes, is they collect money from the underground economy as well as the above ground economy. I'm not sure that's going to make either one more popular with the people though. Smiling
Reply
#13
(12-10-2012, 09:04 AM)orygunluvr Wrote:
(12-10-2012, 08:37 AM)csrowan Wrote: Sales tax is generally agreed to be a regressive tax; that is, lower income people end up taxed a greater percentage of their income. While it has been suggested that one can mitigate this to some extent by not charging sales tax on food and clothing, it still doesn't solve the issue entirely.

See the chart here, for an explanation of why sales tax is regressive: http://nontrivialpursuits.org/sales_tax.htm


As to tourists, they already pay taxes. Any money they spend in Oregon is subject to income tax. If they stay at a lodging, buy gas, lottery tickets, alcohol, or cigarettes, they pay additional tax as well.

All taxes and regulatory costs to business are passed on to the consumer. That makes them all regressive and affecting the poor the most.

If all taxes are regressive, then why do rich people and big corporations complain about higher taxes? How did we have a booming economy when the rich were being taxed to the gills (I think it was the Eisenhower years)?
Reply
#14
(12-10-2012, 09:01 AM)blondemom Wrote:
(12-10-2012, 08:37 AM)csrowan Wrote: Sales tax is generally agreed to be a regressive tax; that is, lower income people end up taxed a greater percentage of their income. While it has been suggested that one can mitigate this to some extent by not charging sales tax on food and clothing, it still doesn't solve the issue entirely.

See the chart here, for an explanation of why sales tax is regressive: http://nontrivialpursuits.org/sales_tax.htm


As to tourists, they already pay taxes. Any money they spend in Oregon is subject to income tax. If they stay at a lodging, buy gas, lottery tickets, alcohol, or cigarettes, they pay additional tax as well.

But what about the gifts they buy and at the restaurants etc . When people buy cars, furniture.

But back to the taxes, but to be honest there will never be a "fair" tax plan there will always be someone that feels that they pay more than they should and that others should pay more. And yes truthfully 5% will cost more to a person making $10,000.00 than a person making $15,000.00, and it will cost the person making $25,000.00 less. But you know what, life isn't always about fair. You want police protection, you want good roads, you want good schools, you want the fire department to show up, you want services they have to be paid for.


You may have missed the part where I said any money tourists spend will be subject to income tax. They spend money here, someone here pays tax on that income.
Reply
#15
In many cases state income taxes is deductible from Fed income taxes. I agree with csrowan why trade a progressive tax for a regressive tax. Ponder is right on. It is democracy to keep submitting a proposal until it passes?
It would certainly have a negative impact on Southern Oregon and the Portland area. When in sales tax states I show them my Oregon License and don't pay it.
Reply
#16
(12-10-2012, 08:37 AM)csrowan Wrote: Sales tax is generally agreed to be a regressive tax; that is, lower income people end up taxed a greater percentage of their income. While it has been suggested that one can mitigate this to some extent by not charging sales tax on food and clothing, it still doesn't solve the issue entirely.

See the chart here, for an explanation of why sales tax is regressive: http://nontrivialpursuits.org/sales_tax.htm


As to tourists, they already pay taxes. Any money they spend in Oregon is subject to income tax. If they stay at a lodging, buy gas, lottery tickets, alcohol, or cigarettes, they pay additional tax as well.

True enough, CS.
In NY, this is remedied by having 'tax-free' shopping days/weeks, usually around the back-to-school season. This typically benefits locals rather than tourists buying trinkets. That could work here in Oregon. NY is a very high-tax state, as we all know, but they also enjoy a high level of services. We could offset a sales tax with a cut in the income tax rate, I believe.
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)