Originally posted by KrazyHorse
Although what Che is saying is true. If a state has both sales tax and income tax then you should be able to deduct both... I do agree with this statement, but calling the new arrangement unfair is way wrong. It is a HUGE step in the right direction.

Originally posted by Harry Tuttle


I think that deal was cut out of the tax code in the 80's. The IRS was probably sick of receiving shoe boxes in the mail. I have a way to figure it out. Reverse receipts. Send in how much you pay in rent (sales tax exempt), non-junk food groceries (ditto), medical care, tuition etc (all the sales tax exemptions). Call this A. Then send in your bank balance at the beginning of the year and the end of the year. B and C respectively. Then send in your income (D).

D - C + B - A is how much you spent on taxable goods and services. Multiply by your state's sales tax to get E, the amount you spent in sales tax during the year.

Unfair Taxation
 

Flat Tax, not.

Unfair my azz! Before states with income taxes (and consequently low sales tax) were able to deduct that on their federal income taxes. States that only had a sales tax could deduct nothing...nada...zero. This new law FINALLY levels the playing field. The system before was the grossly unfair one.

Originally posted by Imran Siddiqui
probably the states with the most social programs. So they are benefitting from better social programs, better education, and less crime.

You can't expect to live in the best states, and not have to pay something.

So why can't they take their sales tax off their federal tax? That doesn't answer the question, it just avoids it, Diss http://www.discussworldissues.com/fo...ies/tongue.gif. I gave my answer.

they don't deserve it. Their added benefit comes from living in good states.

Would you rather live in my state with the highest smoking rate, the highest suicide, rate, the worst schools, the higest teen dropout rate, high crime rates, etc. etc.

Originally posted by Dissident
most states without an income tax have high sales tax. My state is one example. That's because your state, like my state, has other massive sources of revenue than taxing its own citizens' income, i.e., tourism. We have beaches and a mouse, you have gambling and prostitution. A high sales tax allows us to tax tourists, and thus, supposedly, tax residents less. Generally, we don't have to pay sales tax on food and shelter, so we're pretty insulated from having to pay for our state services.

Originally posted by Imran Siddiqui
most states without an income tax have high sales tax.

What about states with high incomes tax and high sales tax? probably the states with the most social programs. So they are benefitting from better social programs, better education, and less crime.

You can't expect to live in the best states, and not have to pay something.

You don't pay sales tax on gasoline? Unlikely. More likely is that gas stations are simply required to include that tax along with all the other taxes in the posted price.

Shhhh, keep it quiet, you don't want people getting upset over this http://www.discussworldissues.com/fo...ilies/wink.gif

Originally posted by alva
If you are a real nut, you could always add up all of your receipts from the year, like they did in ancient times, and hope that it's more advantageous.

Don' you guys do that anymore? I think that deal was cut out of the tax code in the 80's. The IRS was probably sick of receiving shoe boxes in the mail.

Originally posted by KrazyHorse


I have a way to figure it out. Reverse receipts. Send in how much you pay in rent (sales tax exempt), non-junk food groceries (ditto), medical care, tuition etc (all the sales tax exemptions). Call this A. Then send in your bank balance at the beginning of the year and the end of the year. B and C respectively. Then send in your income (D).

D - C + B - A is how much you spent on taxable goods and services. Multiply by your state's sales tax to get E, the amount you spent in sales tax during the year. I REEEEEEAAAAAALLLLLYYYYYY doubt the IRS would accept that explanation. http://www.discussworldissues.com/fo...lies/smile.gif

I thought this thread was going to be about profit.

Originally posted by Flubber
Quick question - Does the federal tac code allow people in states with state inccome tax to deduct that income tax in calculating federal tax?? I'm just trying to understand the reasoning You bet it did. Now there is a choice. You can deduct eithier (in states with both) one and therefore choose which gives you the bigger deduction.

Originally posted by Flubber


Thats what I was thinking. It seems unfair that a person can deduct all if his state uses one type of taxation but only a portion if his state uses two methods The table that you have to use to calculate your deduction way underestimates the amount of sales tax you actually pay...unless of course you want to keep all your reciepts for the whole year. It is NOT a boon, but rather a move in the correct direction.

commies talking about unfair taxation. http://www.discussworldissues.com/fo...milies/lol.gif

Allowing any deductions for state taxes on the federal income tax is unfair.

Wait, WTF?

Subsidizing something usually increases its consumption, but it doesn't necessarily increase it "a whole hell of a lot".

But still, what the ****? Why was this thread nevived?

For this to be true then everyone's perception of the effect of the tax would have to be the same. Which obviously isn't the case.