The US has varied rates on ST based on state (for example, in New Jersey: its somewhere around 6.6%) but that in itself is nowhere close to an actual country (like, Norway imposes 25% VAT on everything nationwide, its included in the final price) but taxes in general are intended to fund roads, education, infrastructure, etc. (this is something all countries have) and taxes are deducted when you receive your paycheck.

The difference is that Norway imposes 25% VAT (whatever the price is, includes tax) for a reason: to maintain high quality standard of living (it explains why you don’t hear stories of medical or student debt as much) as their public services are funded from high taxes imposed towards citizens. While in the US: sales tax is only added upon checkout, but what do you receive from the government in return after paying taxes?

  • chickenf622@sh.itjust.works
    5·
    1 day ago

    I would argue that sales taxes are regressive and hurt the people social programs are supposed to help. The one case I have seen where a sales tax would make sense is for a local zoned area for development of that area. Say there is a new public transit system being built and a business is within 5 blocks of it. They would massively benefit from that public transit and having a 1% sales tax that goes towards funding the public transit is in my opinion a case where that would work. Even better if the businesses can only increase prices to cover at most half the cost of the sales tax (so the business pays part of it and the consumer pays part of it).

    Really what taxes should be focused on is getting the rich to actually pay their fucking taxes. The amount of good that could come from the rich getting properly taxed would be enormous. Along with reducing sales taxes and increasing taxes elsewhere would probably be better as a whole (outside of the above scenario where it’s highly localized).

    TL;DR I think it’s too high cause other forms of tax revenue are in my opinion better than sales tax. See for example how Missouri rejected a proposal to remove income tax and let the state set sales tax to whatever they wanted in an 80% vs 20% vote.