how much tax do u pay?

This was the question that sparked a debate at a family gathering recently.

We all know how much income tax we pay. That's easy to keep tab off being accounted for in total once a year when we file our income tax returns. But the problem comes with sales taxes for which you have to be very meticulous to keep tab of... i actually never thought some people keep a tab of that !!

Also in many countries like India, besides sales tax, there are also indirect taxes like Excise and Service taxes which are levied on the provider of the goods/service but borne by the consumer.

So the problem is this, do you really know how much tax you end up paying to the Government? Why does the government not impose just Income tax which is easier to keep tab of and get rid of sales tax and indirect taxes? Are not sales tax and indirect taxes a double taxation on your income?

I am no tax expert and its been sometime since i passed my grad in economics.

However, i know this; income and spending are two different activities for economics and taxing each has got different objectives. Also there is the divide of what goes to the Federal (Central) government coffers and what goes to the State coffers. For me though that is just a matter of how the Government has chosen to organise itself. I'm not sure if its true in the US but in India a fair part of the taxes collected by the Central government are re-routed to the states based on various parameters. Thus, as the person getting taxed i'm equally worse off, no matter which pocket or part of the Government taxes me.

Fact is many people who do not pay income taxes, still have to pay sales tax and indirect taxes when they buy goods/services and so it certainly widens the tax net. But for those who pay Income tax, it certainly does appear to be 'double' taxation.

Also in certain economic periods (like right now) when the government would want to stimulate spending, shouldn't they do away with sales tax?

Anybody out there has an opinion? feel free to share.