Crazy plan X - discuss

[essentialsaltes]

California tax revenues 2009-2010 (see figure 8):

personal taxes $47B
corporate taxes $8B
sales taxes $26B

Pertinent facts:
Sales tax in my hood is a ridiculous 10.25%.
Sales taxes are regressive.
I chortle with glee when I order something on Amazon and pay no sales tax. Even if I had to pay for shipping (which I never do!) it can still be cheaper than paying sales tax. Of course, I always send a big check to Sacramento to cover all my online purchases every year!

Proposal:
Eliminate sales tax and increase income and corporate taxes.

Positive(?) Effects:
more progressive tax
encourages consumption of California goods and services
eliminates online tax loophole
pleasant shock at cash registers everywhere

Negative(?) Effects:
rich people whining
horrifying shock on paychecks everywhere
some people are unable to calculate tips

Comments

[ian-tiberius.livejournal.com]

unixronin, would you please direct me to the article and section of the United States Constitution which prohibits double taxation?

(When you discover that the phrase "double taxation" does not appear in the text of the Constitution, you might want to do a little research. This research may lead you to the Commerce Clause, and the realization that the "double taxation" prohibition has to do with multiple states imposing taxes on the same interstate commerce transaction, and nothing to do with all the things you're bemoaning above.)