PSCI 3325 Lecture Notes - Lecture 27: Income Property, Flat Rate
25 Jan 2017
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Document Summary
Collected by retailer and given to government. No income tax, higher sales taxes in return. Cities can add their sales tax to the rate. Poorer people are likely to spend money on things that are taxed than richer people who will put it in the bank. Argument for: taxing people on their voluntary spending, not their income or work. Easier to implement than income tax: remote (internet) sales. 1992 sc case, if the seller has no physical presence where the buyer is, there is no requirement from the state to collect state revenue because of states cannot regulate interstate commerce. Sc says that congress has the power to define what to do with the taxing issues: services. Most services are not subject to sales taxes. Rule of thumb: lower end services get taxed more than services that higher income individuals can afford more or use. Special sales (excise) taxes: a tax on a specific item: tobacco, airline tickets.
