Max,
Making no attempt to justify the complications and paperwork involved
preparing tax returns (let's see--I do state income personal, business,
state sales business, fed 941, state 941, fed 940, state UC1 and UC5,
licence for two components in my business, state vehicle licence tax,
town vehicle personal property tax, and probably more that I can't recall
at the moment), there are reasons for separate income and sales taxes.
The primary reason is to share more equitably, if possible, the burden.
An income tax can be "progressive", wherein the rich (whatever they
are) pay tax at a higher rate than the "poor". The assumption is that
a rich fellow can more readily afford a dent in his gross income than one
who is just scraping by.
A sales tax must be applied at the same rate to all taxible sales,
thus in CT the fellow buying his Bentley pays 6 per cent just as does the
fellow buying his used Chevette. To this there are exceptions, of
course. Groceries are not taxed in most states, and children's clothing
is exempt in many stated. The reasoning behind this is that these
necessities are necessities for all, rich and poor alike, and that the
rate of consumpion is somewhat similar.
Taxes are a nuisance and have strong intended and unintended
consequences. All in all, though, my preference is for our seemingly
awkward system over the twisted logic of the supposedly simple VAT.
Bob
who remembers that all taxes mentioned above are due 9/30/00.
(large snip)
> Or maybe it's just required by law for some obscure reason (as in
> Connecticutt). My personal (OT) opinion is that California's
> practice of
> combining a state income tax and a state sales tax is massively
> inefficient, requiring two entirely separate tax bureaucracies, with
> all
> the overhead and paperwork each entails. Ridiculous. Why not boost
> one of
> the taxes by a few measly percent and totally eliminate the other
> one,
> for a net gain in revenue AND decrease in personal taxation?
> Max Heim
> '66 MGB GHN3L76149
> If you're near Mountain View, CA,
> it's the red one with the silver bootlid.
>
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