John from Santa Fe, NM

Faces of the Federal Budget

[With a sales tax] wealthy people like myself … are only taxed on a portion of what we make. … A wage earner is getting taxed on all of his and I’m getting taxed on a piece of mine.

People such as myself who are high income earners have been served very well by the decreasing progressivity of the tax code. I think people who are motivated only by their own interests are very satisfied with our tax policy if they are high income earners.
However, I paid the top tax rate on my income as ordinary income. The way the current tax policy hurts me personally is that those who are the very top income earners in our society, who are financial services people, are paying a 15% rate. So it does hurt me personally in that way. But it hurts the progressivity of the tax code even more.

More and more, we’re seeing government funded with payroll taxes. […] When you fund government with payroll taxes, you’re taking money out of the pockets of people who will absolutely spend it back into the economy. So, shifting from income taxes and corporate taxes to payroll taxes is a terrible mistake. It absolutely depresses the consumer-driven economy.

In the same way, we’re seeing a shift away from property taxes and income taxes and toward sales taxes. Everyone surely agrees that a sales tax is the most regressive tax. It means that those who must spend all of their income are taxed on all of their income. Wealthy people like myself who only spend a portion of what they make are only taxed on a portion of what we make. I may pay a greater absolute amount of sales taxes because I buy expensive stuff, but as a percentage of my income that gets taxed, a wage earner is getting taxed on all of his and I’m getting taxed on a piece of mine.

John from Santa Fe, NM | Map

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