To the original poster: I've not filed taxes on a sum near $28,000 since 1987, but I thought you'd just about be exempt from federal taxes at that level. With $16,000 in taxable income, your top bracket shouldn't be more than 15% or $2400, and that assumes that every dollar is taxed at that level.
And it is more likely that the Republicans will vote to overthrow the IRS; so many of the tax laws and regulations are designed to reward or punish behavior rather than simply raise revenue, it's unlikely the Dems would like the idea of losing that kind of control over the citizenry.
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Originally Posted by divagrrrl
I'm still so confused.... I am leaning towards rooting for abolition of federal taxes as we know them, and replacing it with a Value-Added tax like in the UK and other countries... in other words, a national sales tax.
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I'd like to see more details, but from what I know about it, it's a good idea.
But the 16th Amendment will need to be revoked, or Congress will wind up taxing income and having a sales tax. There will also need to be a monthly or quarterly rebate to all taxpayers, to make up for the loss of deductions, and to make sure it is not regressive on the low income persons.
Here's my main question, using chicken soup as an example:
Campbell's buys chicken from Tyson for the soup--is there a tax on that transaction? For Tyson, it's an end-user sale.
Campbell buys the tin can from American Can Company--is there a tax?
Campbell buys the paper label from Georgia Pacific--taxable event?
Campbell sells the can of soup to Kroger--taxable?
I know when Kroger sells it to me, it's taxable. Any ideas on the others?