The thing is, people can and often do, earn money from more than one income stream.
The real problem is when it comes to what the government allows a person/family to deduct.
So if federal tax's are paid up front, there would need to be another system also for people that
really need to pay more in and for people that really should be getting funded for their deductibles.
Deductibles like mortgage interest.
Sales tax is what drives me crazy where I live. Some states in the USA have a low sales tax and
some have a high sales tax. Some states do not charge any tax at all on items you eat. Whereas
most states do charge tax on food items. Some states have a lower sales tax on food items then
other states that charge tax on food items.
I live in TN and it's a HIGH sales tax state. I pay almost 10% sales tax on everything I buy. I
actually save money buying online from sites that do not charge a sales tax. Tennessee does
charge tax on all food too, not quite as high as 10% but still very high. About a 40 minute drive
and I am in the state of KY (Kentucky) where there is absolutely no sales tax on any products
consumed into the body such as food and drinks. Also, KY sales tax is 6%. It's crazy the way
the sales tax's are from state to state.
Tennessee is the 3rd highest food tax in the nation:
Tennesseans for Fair Taxation
Because of Tennessee's tax on food and the highest general sales tax in the nation with no state income tax, the poor pay more in taxes - the richest 1% of Tennesseans pay only 3.3% of their income in taxes while those earning $17,000 a year or less pay almost 12% of their income in taxes. Not only is it unfair, it's unsustainable to provide the quality of life and public services ALL Tennesseans need and benefit from. If our legislators eliminated the tax on food, reduced the general sales tax and implemented an income tax on the wealthiest Tennesseans, 2/3 of us would see a tax cut AND the state would have an additional $1 billion in revenue to fund vital public structures.
So, we're rather peeved to say the least, down here in Tennessee. We don't think anyone should have to
pay tax on food.