Will renters have to pay sales tax if bill s1493 is passed?

[1songbird]

An interesting topic came up on a finance site about a bill sponsored by Saxby Chambliss(R-GA). Proposal S. 1493 seems to require renters to pay taxes, but homeowners who buy existing homes would not be taxed. The tax would be non-ending and will specifically exclude "business use" property(including rental property) from the definition of "used property" which is exempt from the tax. Here's a link to the site. I want to know if your interpretation is the same as mine. I believe renters will indeed be taxed if this bill is passed. Refer to section 2, Subsections 14-16 of the following:


Type in S1493 under Bill search by number
http://www.senate.gov/pagelayout/legislative/g_three_sections_with_teasers/legislative_home.htm



If this is true it would be grossly unfair and detrimental to those who rent. People usually rent because they can not afford to own a home. This is a gross penalty and transfer of tax burden to those least likely to be able to afford it.

[Wwagsthedog]

1. It is called regressive taxation

Similar to taxing the prisoner in the Wizard of Id for the swill his is entitled to consume. Chambliss is such a swill fella.

[1songbird]

2. I was hoping that I was wrong in the interpretation.

This is beyond regressive

[papau]

3. GOP's replace income tax with sales tax so rich can buy taxfree in

other countries and pay no tax here.

We had a lux tax on cars over 40,000 and big boats - and the rich just bought over seas and moved them here - with no tax because because we did not have a "use" tax that replaces the sales tax and taxes new stuff when you put it in service in the US (all the states have "use" taxes to back up their sales tax - if they have a sales tax)

The GOP want the poor to pay more taxes so they can appreciate the great country they are sharing with the rich who, per the GOP, should not pay taxes so that they can have more money to move jobs overseas via investments overseas. The rich folks solution to their bad habit of investing overseas is to make investment income tax free = which Saxby Chambliss(R-GA). would do - but then they forget to mention that they invest where workers are screwed the most - unless peer presure via law and regulation force them to not do so.

You can tell it is a GOP idea by the name - "fair tax" when it is really most "unfair" to all but the rich.

[Noordam]

4. If you rent you are already paying property taxes

that is factored into the rent.

This sounds like a tax on a tax to me...

[1songbird]

5. This would definitely be double taxation

[area51]

6. outrageous taxation

Noordam said:

"If you rent you are already paying property taxes; that is factored into the rent."

Exactly. Nazi radio talkshow host, Jon Matthews, recently mentioned on other threads for being indicted for alleged indecency with a child, has been fond of lying that renters don't pay property taxes.

And in places in TX & CA, if you live in an apt., you may get to pay a separate "tax" in the form of a monthly water bill, even though there probably isn't a (separate) water meter connected to your apt. There's more taxation w/o representation.