Tax Implications

Topics: Property, Tax, Real estate Pages: 2 (643 words) Published: February 24, 2013
Preference is towards 3% tax on retail sales.
The ratio of tax distribution is most equitable in retail tax. I believe that every individual is responsible for contributing to the nation’s tax revenue despite age, but I believe that retirees should have the least contribution as they have already paid their dues to society from all the years they have previously worked. With this in mind, the retail tax is the fairest solution due to it being the most equal in distribution. Each group is still paying a considerable amount of tax, with retirees having the lowest share in retail and workers having the highest. This makes sense as workers have a high and stable amount of money coming in. This is by far the fairest plan of them all and is in the best interest of the community and for retirees. One thing that is common amongst all three groups is that each group will work or have worked in their lifetime. However, in terms of property, not everyone will own a house which accounts for the majority of property tax. Many live in apartments or in some sort of rental house. Therefore, property tax should be taken out of the picture as it is the most unfair and is significantly targeted towards retirees and homeowners. Also, if once the owners of houses pass away and ownership of property is handed down to the next generation and they are unable to pay the property taxes due to the increase then ultimately the property will be loss. Another factor to consider is that consumers can decrease spending on retail essentials or workers can increase workload to obtain the same after-tax income if the retail or wage plan goes into effect. However, property owners cannot easily increase or decrease the price of property as it is largely based on the fair market price and state of the economy. They have no control over what happens in terms of property while those affected in the retail and wage tax plans have at least some control to adjust to the situations proving...
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