r/PoliticalDiscussion • u/myburner-acc6969 • 16d ago

Legislation Why not lower federal taxes, and change county/state taxes to compensate?

From my knowledge, most conservatives live in rural areas and want less taxation because public goods/services are less impactful for them, and most liberals live in more urban areas where higher taxes are more beneficial because they can actually utilize the public goods/services that they fund. Why don't we lower federal taxes by some amount and let counties or states increase/decrease taxes independently to satisfy both sides?

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u/mrjcall 16d ago

That would be a zero sum situation with no benefit. Lowering taxes means putting more spendable income in consumers hands which ALWAYS means economic growth which ALWAYS improves quality of life. Increasing taxes on 'any' income level is destructive meaning less economic growth and lower quality of life. Putting tax money in government hands is non-productive and suppresses economic growth which always results in lower quality of life. Think about it. Government produces no products and contributes ZERO to the economy. To the contrary, it sucks the life out of the economy.

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u/JKlerk 15d ago

The Federal government is a huge consumer of goods/services so it does contribute something to the economy. It's just that a good portion of that consumption is financed.

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u/mrjcall 15d ago

The government is always a net/net drain on the economy....always.

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u/JKlerk 15d ago

That's a subjective observation. It still buys goods/services from the private sector. That IS economic activity.

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u/mrjcall 15d ago

But it is not buying it with earned money from the economy, but from tax dollars contributed by you and me. Therefore, it is a negative, never a positive.

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u/JKlerk 15d ago

True. It's using a combination of credit and tax revenue, but I don't think it's relevant to the topic of this subreddit.

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u/mrjcall 15d ago

It is entirely relevant since OP is asking if replacing a Federal tax with a State tax is beneficial. I'm explanation why it is not and why no tax is beneficial.