Posted by burnsy483 on 6/9/2014 5:27:00 PM (view original):

Posted by MikeT23 on 6/9/2014 5:22:00 PM (view original):
Within reason.   The guy who spends his paycheck by the next Friday every week isn't going to become a miser.   He's going to spend it all again.

There's a difference between making 100k and needing 80k to live and making 100k and needing 100k to live.   Some people can live within their means and put a few bucks away and some cannot. 

BTW, I just looked up sales tax in my area.  Much to my surprise, it's different depending on the city.  Do you think I'll go to the store 10 miles away to save 2% instead of going to the one 3 miles away?

Well, no. There's gas and time as factors.

Again, we're talking about 30% as a tax, not a 2% difference.  I'm going to put it into consideration when I make a purchase.

I could do the math to determine if it's worth the extra gas/time.   Or, better yet, my home and office are in different cities.    I could tailor my shopping to go to the cheaper area.

But I won't.  

And you keep forgetting that you have more money now.  $700 is now $1000. 

We still haven't addressed double taxation. If I spend this year saving for a car and the sales tax goes into effect next year, I've already paid income tax on that money and now I have to pay 30% for the car. $700 is now $400.

Posted by MikeT23 on 6/9/2014 5:31:00 PM (view original):

Posted by burnsy483 on 6/9/2014 5:27:00 PM (view original):

Posted by MikeT23 on 6/9/2014 5:22:00 PM (view original):
Within reason.   The guy who spends his paycheck by the next Friday every week isn't going to become a miser.   He's going to spend it all again.

There's a difference between making 100k and needing 80k to live and making 100k and needing 100k to live.   Some people can live within their means and put a few bucks away and some cannot. 

BTW, I just looked up sales tax in my area.  Much to my surprise, it's different depending on the city.  Do you think I'll go to the store 10 miles away to save 2% instead of going to the one 3 miles away?

Well, no. There's gas and time as factors.

Again, we're talking about 30% as a tax, not a 2% difference.  I'm going to put it into consideration when I make a purchase.

I could do the math to determine if it's worth the extra gas/time.   Or, better yet, my home and office are in different cities.    I could tailor my shopping to go to the cheaper area.

But I won't.  

And you keep forgetting that you have more money now.  $700 is now $1000. 

All I can tell you is what my first reaction is.  And that is that I'm going to be careful with my money.  Yes, it's more money that I have.  But with everything costing 30% more, I'm probably going to be more frugal.  Maybe I'm in the minority.

Posted by bad_luck on 6/9/2014 5:35:00 PM (view original):
We still haven't addressed double taxation. If I spend this year saving for a car and the sales tax goes into effect next year, I've already paid income tax on that money and now I have to pay 30% for the car. $700 is now $400.

Right, the money you saved to buy the car was taxed already.  There's that.  

You gotta break some eggs to make an omelet. 

Adjustments can be made.   Banks keep records, you know.   

FWIW, you might be the only person on earth who, given more money, becomes more frugal. 

Posted by MikeT23 on 6/9/2014 5:41:00 PM (view original):
FWIW, you might be the only person on earth who, given more money, becomes more frugal. 

When the cost of everything goes up? Yea. Like I said, maybe I'm in the minority.

Posted by MikeT23 on 6/9/2014 5:40:00 PM (view original):
You gotta break some eggs to make an omelet. 

Adjustments can be made.   Banks keep records, you know.   

True.  Maybe it's "Here's my bank statement on December 31, 2014."

Posted by MikeT23 on 6/9/2014 5:40:00 PM (view original):
You gotta break some eggs to make an omelet. 

Adjustments can be made.   Banks keep records, you know.   

Well that wouldn't be a nightmare to implement.

"Hey you, car dealer. Yeah you. Collect 30% in sales tax on top of the price of the car. But only collect the tax if the person can't provide bank records to prove that they had the money before the tax went into law. Yes, the records have to be originals. Photocopies? No, no photocopies. Notarized? Yeah you probably want to make sure they're notarized. Who's liable for errors? You. Obviously."

Again, what's the goal of this tax change? To collect more taxes? To collect less taxes? To collect the same amount of taxes in a different way?

Posted by bad_luck on 6/9/2014 5:45:00 PM (view original):

Posted by MikeT23 on 6/9/2014 5:40:00 PM (view original):
You gotta break some eggs to make an omelet. 

Adjustments can be made.   Banks keep records, you know.   

Well that wouldn't be a nightmare to implement.

"Hey you, car dealer. Yeah you. Collect 30% in sales tax on top of the price of the car. But only collect the tax if the person can't provide bank records to prove that they had the money before the tax went into law. Yes, the records have to be originals. Photocopies? No, no photocopies. Notarized? Yeah you probably want to make sure they're notarized. Who's liable for errors? You. Obviously."

Again, what's the goal of this tax change? To collect more taxes? To collect less taxes? To collect the same amount of taxes in a different way?

Maybe it's as simple as submitting your last federal tax return, you show your financial records on that date.

Posted by burnsy483 on 6/9/2014 5:44:00 PM (view original):

Posted by MikeT23 on 6/9/2014 5:41:00 PM (view original):
FWIW, you might be the only person on earth who, given more money, becomes more frugal. 

When the cost of everything goes up? Yea. Like I said, maybe I'm in the minority.

There's some validity to it with a major purchase.  Like a car or a house.    But a $2000 TV being $2600?   If you're making 50k a year, no, not so much.  That's two weeks of increased pay.

Posted by burnsy483 on 6/9/2014 5:46:00 PM (view original):

Posted by bad_luck on 6/9/2014 5:45:00 PM (view original):

Posted by MikeT23 on 6/9/2014 5:40:00 PM (view original):
You gotta break some eggs to make an omelet. 

Adjustments can be made.   Banks keep records, you know.   

Well that wouldn't be a nightmare to implement.

"Hey you, car dealer. Yeah you. Collect 30% in sales tax on top of the price of the car. But only collect the tax if the person can't provide bank records to prove that they had the money before the tax went into law. Yes, the records have to be originals. Photocopies? No, no photocopies. Notarized? Yeah you probably want to make sure they're notarized. Who's liable for errors? You. Obviously."

Again, what's the goal of this tax change? To collect more taxes? To collect less taxes? To collect the same amount of taxes in a different way?

Maybe it's as simple as submitting your last federal tax return, you show your financial records on that date.

My savings account balance isn't included in my tax records.

Posted by burnsy483 on 6/9/2014 5:46:00 PM (view original):

Posted by bad_luck on 6/9/2014 5:45:00 PM (view original):

Posted by MikeT23 on 6/9/2014 5:40:00 PM (view original):
You gotta break some eggs to make an omelet. 

Adjustments can be made.   Banks keep records, you know.   

Well that wouldn't be a nightmare to implement.

"Hey you, car dealer. Yeah you. Collect 30% in sales tax on top of the price of the car. But only collect the tax if the person can't provide bank records to prove that they had the money before the tax went into law. Yes, the records have to be originals. Photocopies? No, no photocopies. Notarized? Yeah you probably want to make sure they're notarized. Who's liable for errors? You. Obviously."

Again, what's the goal of this tax change? To collect more taxes? To collect less taxes? To collect the same amount of taxes in a different way?

Maybe it's as simple as submitting your last federal tax return, you show your financial records on that date.

The govt issuing a "credit card" based on what you had saved.    30k?   Sale is rung up and 28k for that car is deducted from your tax free money.  Now your "CC" has 2k towards your next "tax free" purchase.   And, no, it's not a real credit card.  You still have to pay for what you buy.   It's more like a tracker of your saved money.

I like it the idea because I decide when the government is taking money from me.  I have the ability to save more money when I want.  My salary is x$, and I get all of it.  That said, I'm not sure it's practical. 

Yes, you'd have to add it the last time you file for federal taxes.