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Would You Support a State Sales Tax to Replace the State Income Tax?

Seven states already have no state income tax and Georgia House Rep. Tom Kirby plans to introduce a bill advocating the same for Georgia.

There has been a move in operation for years to try and do away with the IRS and the federal income tax system, but seven states have already managed to do that with state income tax.

According to About.com, Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming already have no state income tax and Tennessee and New Hampshire only charge income tax on interest and dividend income. About.com reports that not all, but most, of these states have some of the lowest state taxes in the nation. Alaska, Nevada, Wyoming, Florida and New Hampshire lead the nation in states where folks pay the lowest state taxes. A Georgia representative is hoping to add Georgia to the list.

House Rep. Tom Kirby planned a press conference at the Georgia state Capitol on Wednesday to introduce his Georgia Fair Taxation Act of 2014, which would move Georgia away from state income tax to a state sales tax as a way to raise state revenue.

Do you support this as a way of raising revenue for the state? Do you think states could lead the way in testing the waters for a national sales tax as an alternative form of revenue collection?

Mr. B April 02, 2013 at 05:11 PM
Jerry's doing a great job (sarcasm intended.) For Easter, he pardoned 3 killers and 62 drug dealers.
George Wilson April 02, 2013 at 05:22 PM
@ Mr. B In Internet slang, a troll is someone who posts inflammatory,[3] extraneous, or off-topic messages in an online community, such as a forum, chat room, or blog, with the primary intent of provoking readers into an emotional response[4] or of otherwise disrupting normal on-topic discussion.
George Wilson April 02, 2013 at 07:06 PM
Personal Income Tax Cuts Are a Poor Strategy for Growing State Economies...but the Republicans will use this as an argument to increase the sales tax. There are a number of good reasons why the real-world results and the academic literature lend little support for personal income tax cuts as a strategy for boosting state economies. It’s a zero-sum game. Because states must balance their budgets, tax cuts must be paid for by cutting state services, raising other taxes, or both, and those actions slow the economy and offset any economic benefit of the tax cuts. Higher state and local taxes help pay for services that households and businesses want and need. State and local taxes are often higher in some locations than others because they are financing higher-quality public services: better schools, roads and mass transit, parks, etc. When higher taxes pay for better services, they may have no adverse impacts on location decisions and may even have positive impacts (when, for example, the reduction in other business costs exceeds the taxes themselves). Other factors are much more important to a state's economic growth. Trends in the national and international economy, a state’s natural resources, the education of its workforce, the proximity to major markets, and the mix of industries in a state these are among the major factors that determine the growth of state economies. Differences among states in state personal income taxes, by contrast, are a very minor issue.
Rusty Taylor April 02, 2013 at 07:39 PM
George, almost every state that does not have an income tax made the Tax Foundation's top ten list of states with the lowest overall tax burdens. This is because just the people that live there are not the only ones paying taxes. Visitors contribute immensely to the local tax base where you have a consumption tax. Georgia would benefit from this greatly as well as Savannah. Did you know that 1 out of every 5 jobs is tourist based in Savannah
George Wilson April 02, 2013 at 07:59 PM
@Rusty Taylor Comparing taxes in different states is very difficult. For example, Florida has revenue from a large number of tourists while other states get revenue from oil, as an example Texas and Alaska. Georgia, in comparison to other states in total taxes ranks somewhere in the middle. So we are not overtaxed. The sales tax is highly regressive and if anything we should be looking a more progressive income tax on higher incomes. How do the Tax Foundations top ten rank in health, schools, and infrastructure?
Rusty Taylor April 02, 2013 at 08:03 PM
Hal you would be wrong. If the Fair Tax is implemented you would have no state tax just one tax that would be distributed to each state. One of the provisions of the Fair Tax is to do away with the sixteenth amendment. So there would be only one tax
Rusty Taylor April 02, 2013 at 08:03 PM
You REALLY need to read the Fair Tax book.
Rusty Taylor April 02, 2013 at 08:04 PM
Yet the principle is the same.
Rusty Taylor April 02, 2013 at 08:07 PM
The problem with a VAT tax is that you have to collect a tax at EVERY level of production. 1. The enforcement would be a nightmare. 2. You would have to hire thousands of I.R.S. agents just to keep up with it.
Rusty Taylor April 02, 2013 at 08:16 PM
Uhhhhh, no not Republicans. Updated 11-29-12 San Bernardino City Attorney Story Generous, poorly negotiated labor contracts by politicians who are supported by labor unions are leading to the bankruptcy of many cities. For years, politicians have vilified business such as the developers and have claimed that the businesses have too much influence in politics. However, the bankruptcies illustrate that labor union and contracts that are payments for campaign contributions are destroying the economies of the cities and soon will destroy the state. The latest city to declare bankruptcy, San Bernardino, has revenue of $120 million annually and labor costs of $126 million, according to news reports. The cities and other governments are negotiating labor contracts that do not allow them to adjust pay, staffing or job duties in the event of revenue collapses or inflation on the services they provide to retirees
Rusty Taylor April 02, 2013 at 08:19 PM
The Junk Journalists who cover these issues do not provide full disclosure of the facts to their readers. For example, former Stockton City Manager Dwayne Milnes is leading a group of retired city workers in a lawsuit against the city that seeks to force it to continue to pay 100 percent of the retired employees medical coverage. This demand is being made in a lawless city where crime is unchecked. Milnes negotiated those terms in the 1990s and while that is disclosed, reporters do not question him on why he left the city so exposed to his errors. Milnes defends his error by saying it was a simple miscalculation of revenue and medical costs and at the time he gave that generous concession, he got an agreement from the unions not to seek pay increases. In reading the stories, Milness was not asked how it made sense to obligate the city to a 50-year-plus obligation for a one year concession on salaries. Milnes poor negotiation skills, provided a reader believes his excuse, exposed the city to inflation risk for many years. In addition, it appears the salary concession was short lived. The Junk journalist do not disclose average retirement pay or whether Milnes is just representing these employees or is part of the group. The reporters should also give readers the retirement package Milnes receives. The readers are unable to determine whether these workers should be able to cover their medical costs.
Rusty Taylor April 02, 2013 at 08:20 PM
Man California is belly up and floating down river Mexico way!!!!!
Rusty Taylor April 02, 2013 at 08:46 PM
Tourism is big business in Georgia, really big. The Tourism industry in Georgia is the 5th largest employer in the state with a total economic impact of $49 billion, supporting more than 400,000 jobs, or 10.3% of all payroll employment in Georgia. Taxes of $6 billion were directly and indirectly generated by tourism in 2011. Each household in Georgia would need to be taxed an additional $744 per year to replace the tourism taxes received by state and local governments. Now just think if each one of these visitors had to pay just 10 cents extra on the dollar how much MORE money Ga. would have made. Not to mention that we have the MOST PRODUCTIVE PORT ON THE EAST COST. Just think about the impact of a consumption tax on all of those goods.
Rusty Taylor April 02, 2013 at 08:49 PM
Come on George, should we just not tax the poor at all??? Are the rich paying their fair share? It’s a question that has come up as President Barack Obama and House Republicans begin to haggle over the budget. The top 10 percent of taxpayers paid more than 70 percent of the total income tax revenue collected in 2010, according to research from the D.C.-based Tax Foundation. “That’s up from 55% in 1986,” CNN notes. The remaining 90 percent paid just 30 percent, with 47 percent having no income tax liability. “There’s been a huge myth created that the rich aren’t paying anything,” William McBride, the Tax Foundation’s chief economist, told CNN. “The rich pay a much higher rate than the poor.” This research is corroborated by Congressional Budget Office numbers from last year, which found that the “top 20 percent of earners — the top quintile — bore 67.9 percent of the federal tax burden in 2009,” The Daily Caller News Foundation reported.
Hal Schneider April 03, 2013 at 12:02 AM
Rusty, Even if they did repeal the 16th amendment, which Ii do not believe for one second they would, what makes you think they won't pass other taxes to supplement their avarice and feed their spending addiction? You have far more trust in the benevolence of our government than I do!
Wa Wu April 03, 2013 at 12:03 AM
Just think if the Federal & State Governments would quit spending our tax $$$$$$$$$$$$$$$ on stupid waste we could lower all taxes. "To pay one farmer to grow & pay one farmer not grow is wast of money." "To limit sugar imports & subsidize farmers who grow sugar cane is a WASTE of tax $$$$$$." Just like using corn as a fuel & subsidizing corn growers not only wastes tax $$$$$, it lowers MPG when traveling. Now Government wants to use E85, = less MPG, less FOOD on table. THE ANSWER IS NOT LOWER STATE TAXES OR LOWER FEDERAL TAXES. THE ANSWER IS GET RID OF BIG GOVERNMENT, MAKE THEM RUN GOVERNMENT AS BUSINESS & NOT SPEND BECAUSE THIS IS NOT MY MONEY as Postal Service, Amtrak, Nation Parks. Get rid of all Lawyers in government,& those that are only serving themselves or friends
Mr. B April 03, 2013 at 12:25 AM
It's not about taxing the poor; it's not about fairness; it's about the evil rich Republicans and the poor downtrodden Democrats. The blind can't see where the evil really lives, they can only repeat the reports from MSNBC, CNN, Huff Post, etc. You want fairness, don't listen to the libs regurgitation of bad info. Think for yourself. God save America.
Tammy Osier April 03, 2013 at 01:39 AM
RT thanks for trying, but you're using facts and figures. Depending on who you're talking to, they mean nothing. They get in the way of the worship of an ideology. Mr. B., well said as usual.
R++ One of the Famous Dacula Crew April 03, 2013 at 02:18 AM
AH Rusty ... please back that bus up a stop or two... The Fair Tax at the national level addresses the current Federal system, it doesn't impact the state structures. A state sales tax would increase the current sales tax rate now being collected, but would eliminate the state income tax ... and it won't impact the add on levels of local county / city taxes collected on sales transactions.
R++ One of the Famous Dacula Crew April 03, 2013 at 02:20 AM
So the state is going pre-bate sales taxes? Whoa Nelly! me thinks some folks are running ahead of the train
R++ One of the Famous Dacula Crew April 03, 2013 at 02:23 AM
We already have thousands of agents from the IRS in the healthcare package. Just about one per each "orifice" in the country...
R++ One of the Famous Dacula Crew April 03, 2013 at 02:28 AM
You mean like this? "Unemployment in California remains high, but it’s coming down —"
R++ One of the Famous Dacula Crew April 03, 2013 at 02:31 AM
(aka) taxing other peoples money...
R++ One of the Famous Dacula Crew April 03, 2013 at 02:33 AM
Just as long as we realize that local folk pay the bulk...
George Wilson April 04, 2013 at 06:21 PM
To generate the same amount of revenue by doing away with corporate(735 million) and personal income taxes, the state would have to increase the sales tax on food, and add the sales tax to a wide array of services perhaps including tuition, health care, and rent that would hit the retired, working poor and middle class especially hard. If enacted, the Republicans would lose both state houses which may not be all bad. Florida, with no income tax has lost 7.32 % of jobs as compared to 5.9% for Georgia. Having no income tax has really not helped them out.
Rusty Taylor April 04, 2013 at 06:30 PM
We can't let the facts get in the way of a good story!!!
Rusty Taylor April 04, 2013 at 06:43 PM
No one said to do away with "corporate taxes". As you well know corporations don't pay taxes, the consumer that buys from them does but that is another issue. Sort of like renters paying for the property taxes on a piece of rental property. You must not be paying attention or reading any of the other posts. YOU WOULD NOT PAY A CONSUMPTION TAX ON THE NECESSITIES OF LIFE! I don’t know how much plainer I can say it. You would pay a consumption tax on ANYTHING that you bought new EXCEPT FOR THE NECESSITIES OF LIFE. What has job loss got to do with not having an income tax? I fail to see the correlation. Job loss has to do with the fact that they HAVE NO JOBS!!!!!!!!
George Wilson April 05, 2013 at 08:16 PM
Southern Pimps But if there must be a modern welfare system, then the Southern oligarchy prefers a system that allows state governments, rather than Washington, D.C., to control eligibility and benefit levels. By controlling eligibility, Southern state governments can minimize the amount of the local workforce that has access to good social insurance, reducing the power of Southern workers to be “uppity.” At the same time, giving Southern states the option to have lower benefit levels provides the neo-Confederates with yet another bargaining chip, along with low wages and low taxes that can be used by Southern state governments to lure business from more generous states or nations. These policies are reinforcing components of a well-thought-out economic grand strategy to permit the South, as a nation-within-a-nation in the US, to pimp its cheap, dependent labor for the benefit of local and foreign (non-Southern) corporations and investors. This is a reason for the lack of support for an increase in the minimum wage, refusing to add 650,000 Georgians to Medicaid, anti-unionism and above all an increase in the sales tax and the elimination of the state income tax.
George Wilson April 05, 2013 at 09:06 PM
@all For the real facts on this Republican proposal take the time to visit GwinnettForum.com and read Elliott Brack's piece. You want be disappointed.
Tammy Osier April 05, 2013 at 10:12 PM
Give me a dollar in change and I'll give you back 30 cents. Puts the perspective in a different light. If you are a business person, you don't get to keep that 30 cents (%) if you need to purchase more product to stay in business. Heard from many a businessperson of late that said they will go out of business when obamacare is fully enacted. They had 16 employees and it was going to cost well over 200,000 a year to insure them at what is required. If they pay the penalty, at 60,000, they're employees will be responsible for theri own insurance. THe result is thatthey said they'd just find a regular job because they couldn't afford what it would cost to stay in business. Now isn't that going to be just duckie for our economy? these wealth-envy people don't realize that it's the business people (job producers) that are most affected.

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