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Southwest Virigina employment and wage data:

Total Avg Employment- 32990


Total AVg Hourly Wage: 17.68
Avg Weekly Wage: 707
Avg Annual Wage: 36764

Soutwest Virginia Income tax information:


3 percent on taxable income between $3,001 and $5,000. 5 percent on taxable
income between $5,001 and $17,000. 5.75 percent on taxable income of $17,001
and above. Virginia residents must file Form 760, Resident Income Tax Return, by
May 1.

The general sales tax rate for Virginia is 5.3 percent (4.3 percent state tax and 1
percent local tax). There is an additional 0.7 percent state tax imposed in the
localities that make up Northern Virginia and Hampton Roads, making the rate in
these areas 6 percent (5 percent state tax and 1 percent local tax).

0-3000= 2%- 60
3001-5000= 3%-60
5001-17000=5%- 600
17001-36764=5.75%- 1136.43
Total avg tax revenue per worker in SWVA= 60+60+600+1136.43=1856.43
http://www.tax.virginia.gov/income-tax-calculator
http://www.foxbusiness.com/personal-finance/2012/10/11/is-it-time-to-switch-toconsumption-tax/
http://www.econlib.org/cgi-bin/printarticle.pl
http://www.howmoneywalks.com/consumption-tax-vs-income-tax-why-more-statesare-opting-to-collect-consumption-taxes-only/
http://virginialmi.com/report_center/community_profiles/5115000441.pdf
http://www.econlib.org/library/Enc/ConsumptionTax.html
http://object.cato.org/sites/cato.org/files/pubs/pdf/pa416.pdf
http://www.cleveland.com/open/index.ssf/2014/10/the_pros_and_cons_of_the_incom.
html

Thesis: The use of only a consumption tax would benefit southwest Virginias
economy by: increasing each workers take home pay, it would obtain temporal
neutrality, and it would increase the labor supply.
Many Americans avoid income taxes by getting paid under the table cash and not
reporting their income.
Conclusion: William Andrews, a Harvard law professor, makes the argument that
taxing incomewhether from labor or capitaltaxes people on the basis of what
they contribute to society. Taxing consumption, he argues, taxes what they take out.

https://owl.english.purdue.edu/media/pdf/20090212013008_560.pdf
Increase Take home Pay
-

No income tax means workers are taking home everything they earn. It
almost seems like a raise
More spending power. Can now buy things they couldnt before.- More buyers
in the market increases sales tax revenue
Makes it easier for those struggling to get by- Groceries or just necessities
can be tax exempt
Encourage Savings
Goods and services would see a jump in sales and usage. Increasing the
economy all the way around

According to the Virginia Labor Market Information website, workers in Southwest


Virginia make an average of just over $700 per week, compared to nearly $1100
average for the entire state of Virginia. After the income taxes are taken out that
number reduces to around $600 of take home pay per worker. If there were no
income taxes, workers would take home around $100 more per week. Taking
home an extra $100 per week would encourage savings because if you dont
spend, you dont get taxed (foxbusiness). Since the majority of workers in
Southwest Virginia are struggling to get by, groceries, medicines, and other
necessities may be tax exempt making it easier to buy more of those goods to
provide for their families, while still having money left over to save or spend as
they wish. Increasing take home pay would generate economic growth all the
way around, primarily in Southwest Virginia. The extra money would be spent on

goods and services (foxbusiness), a lot of them locally owned, which would
create a cyclical effect for them to hire more workers to keep the money flowing
through the economy.

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