Question about taxes

[chipy]

Why do some states and municipalities choose to impose an income tax when states like Texas don't. I know that those states that don't have state or local income tax must get the money from somewhere else, so why don't all states do that? It would seem to make the tax filing process that much less (only having to file for federal and not state or local).

 

[newb111]

Property tax, income tax, sales tax, I don't really care what they call it.

 

[mugs]

This is why it's silly when people brag about the lack of sales tax or income tax in their state. It's not the tax that you should care about, it's the SPENDING. The money that the government spends has to come from somewhere - the tax payers. It matters little WHICH taxes you pay.

 

[Kelemvor]

Don't worry. All the presidential candidates seem to want to abolish the IRS this year....

 

[FoBoT]

each state is free to choose their own taxing structure and methods
it is up to the state legislatures

 

[Jumpem]

Don't come to NY. We have up to 8% state income tax, 9% sales taxes, and very high property taxes.

 

[chipy]

i understand each state can choose. i guess i'm not undersanding why, the big question for me, why they choose sales and income tax as opposed to just using property tax alone.

 

[Jumpem]

Originally posted by: chipy
i understand each state can choose. i guess i'm not undersanding why, the big question for me, why they choose sales and income tax as opposed to just using property tax alone.

Properrty tax only would put the burden only on property owenrs. Sales and income tax spread the burden to those that don't own homes also.

 

[Fern]

Originally posted by: chipy
i understand each state can choose. i guess i'm not undersanding why, the big question for me, why they choose sales and income tax as opposed to just using property tax alone.

It's a question of philosophy and strategy as well as the practical "how to raise revenue" for a state government.

Florida, for example, has chosen to not have a state persoanl income tax. This gives them an advantage in attracting retirees. Of course, once you have attracted a bunch of retirees and they are now a large voter base, they will not vote for polititions who they think might enact a personal income tax.

Florida being a tourist destination has found that they can tax this non-voting group in an alternate way to raise revenue. Hotel taxes and sales tax are paid by the tourists thereby generating a lot of revenue. But a state with very little tourism can NOT rely so heavily on such taxes and has to go with a personal income tax.

As for just property taxes alone, why should only homeowners (and other r/e owners) pay all the tax? These people also vote for so that's not going to be very politically popular.

Anyway, property taxes are mostly just levied by counties and munipalities who are providing services to the r/e owners. Schools, fire dept etc are the kinda things paid for by property taxes. I also believe that there would be a Constitutional problem with the direct tax on property yet using the revenue for expensess not related in anyway to such property.

Our Founding fathers were extremely concerned about the issue of taxation. They spent a great deal of time on the theory of taxation and enacted numerous prohibitions on it etc.

The King of England could tax your property (as well as other items or transactions) anytime he wished to raise more money, no matter the purpose. They sure as h3ll didn't wanna see that hapen again.

It's beyond the scope of my post here, but there is much (complex) theory associated with taxation, whether income, property or sales tax and what you can do with the revenue etc..

Fern

 

[mugs]

Originally posted by: Jumpem

Originally posted by: chipy
i understand each state can choose. i guess i'm not undersanding why, the big question for me, why they choose sales and income tax as opposed to just using property tax alone.

Properrty tax only would put the burden only on property owenrs. Sales and income tax spread the burden to those that don't own homes also.

Renters pay property taxes too, by way of their landlord. The landlord pays the property tax, but it's coming from the rent paid by the tenant.

 

[JulesMaximus]

Originally posted by: mugs
This is why it's silly when people brag about the lack of sales tax or income tax in their state. It's not the tax that you should care about, it's the SPENDING. The money that the government spends has to come from somewhere - the tax payers. It matters little WHICH taxes you pay.

Agreed. Those states either make up for it with high property taxes or with higher sales tax.

You're paying tax to the state either way.

 

[chipy]

thanks to all, especially Fern for the thorough explanation.

what i should have said was property and sales taxes, not just property tax. having said that, i see why different taxes may be necessary for certain states/cities.