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| | {{ForumReplyPost|UserID=CrowJD|Date=29 September 2009|Text=This sounds like a tax preparers teenage fantasy come true. A national sales tax, PLUS an income tax, but the income tax configured so you are guaranteed a refund (preserve those RALs). You might have something that can pass the Senate there.}} | | {{ForumReplyPost|UserID=CrowJD|Date=29 September 2009|Text=This sounds like a tax preparers teenage fantasy come true. A national sales tax, PLUS an income tax, but the income tax configured so you are guaranteed a refund (preserve those RALs). You might have something that can pass the Senate there.}} |
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| | + | {{ForumReplyPost|UserID=Ss-cpa|Date=29 September 2009|Text=Well, I don't think the National Sales Tax will ever pass, because it has the smell of a regressive tax system, but if used to help illegals be brought into the system and as a way to get current taxpayers to pay throughout the year, then there might be some interest.}} |
Revision as of 15:18, 29 September 2009
Discussion Forum Index --> Tax Questions --> Taxation of Illegals
Ss-cpa (talk|edits) said:
| 27 September 2009
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| I guess everyone has an idea on this, but I had a thought that I wanted to get others opinions on. What if there were a national sales tax on everything that we purchased in the market. Then when we filed our regular income taxes we each received a credit for the sales taxes paid during the calendar year. The sales taxes we paid would be used to offset the income taxes owed. This would prevent people from not paying throughout the year and prevent illegals from not paying anything at all. Does this make sense as a way to bring illegals into the tax system? The taxpayer could track their actual sales taxes paid by keeping receipts or use a standard amount provided, whichever is higher. When it comes to the earned income credit and the child tax credit, which causes many to not owe any income tax and even get FICA taxes refunded, there can be a similar form W-5 to get the sales taxes refunded through their employer or directly from the government. Has this idea been considered by anyone in Congress yet?
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Actionbsns (talk|edits) said:
| 27 September 2009
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| There used to be a credit on Schedule A for sales tax paid. There was a schedule to use based on income and the number of exemptions claimed. It went south along with the loan interest deduction. I'm not sure how your suggestion would work, sounds like a lot more bureaucratic paperwork.
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Ss-cpa (talk|edits) said:
| 27 September 2009
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| Instead of a deduction for the national sales tax on Schedule A, there would be a credit on the 1040 in the federal tax payments section for the "National" sales taxes paid for the year. The taxpayer would get the credit for what he/she paid and could offset that against the income taxes due. The illegals who don't have TINs would not file income tax returns to get money back.
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Harry Boscoe (talk|edits) said:
| 27 September 2009
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| This would *instantly* create a black market bigger than Cabbage Patch Dolls.
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Ss-cpa (talk|edits) said:
| 28 September 2009
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| You are probably right. There would need to be tigher controls than exist now.
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Blrgcpa (talk|edits) said:
| 28 September 2009
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| And how do you expect everyone to keep all the receipts for the year? It's hard enough to get people to give you the correct info for the deductibles as it is.
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Ss-cpa (talk|edits) said:
| 29 September 2009
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| I guess there could a standard credit amount for the national sales tax that would apply based on the income level, (i.e. like the state and local sales tax is on Schedule A now), then individual taxpayers could add the sales taxes for major purchases like cars and boats to this total. You are right.....keeping up with individual receipts would probably be too much. I guess you could have it optional like Schedule A is now for the state and local. You need to do what you can to simplify it though.
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CrowJD (talk|edits) said:
| 29 September 2009
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| This sounds like a tax preparers teenage fantasy come true. A national sales tax, PLUS an income tax, but the income tax configured so you are guaranteed a refund (preserve those RALs). You might have something that can pass the Senate there.
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Ss-cpa (talk|edits) said:
| 29 September 2009
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| Well, I don't think the National Sales Tax will ever pass, because it has the smell of a regressive tax system, but if used to help illegals be brought into the system and as a way to get current taxpayers to pay throughout the year, then there might be some interest.
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