Zarathustra[H]
Extremely [H]
- Joined
- Oct 29, 2000
- Messages
- 39,093
There's no incentive for people to pay that tax unless there's some kind of enforcement, which there isn't. The majority of people don't pay it, so they'd have to basically prosecute every citizen in their state. That's why they're pushing for the vendors to collect the taxes. It's only feasible to do it at the source. So while you may be correct from a purely legal standpoint, the reality of the situation is that there is certainly a tax incentive because there's no enforcement.
If you want another comparison... look at immigration policy. The Federal Government isn't enforcing immigration law, so that's a huge incentive for people to enter the country illegally. If the border was militarized and turned into the equivalent of the Berlin Wall, then the incentive would dry up. It all comes down to what people know they can get away with.
Would be better to ditch all these various taxes and fees all together.
Simplify everything. Have only one tax based on a highly progressive income tax at the federal level.
Then states and municipalities choose how much revenue they need by charging a fixed percentage of that federal progressive income tax from their residents.
Gone is the confusing mess, the need for tax accountant, the 57 different types of taxation, and the loop holes for the super wealthy to get a comparatively free ride.