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> how does a spending tax disproportionately affect the poor? Because they need to spend more of their income in order to survive. If you spend all of your in
by brandonmenc 11y ago
> how does a spending tax disproportionately affect the poor?
Because they need to spend more of their income in order to survive.
If you spend all of your income, a 10% sales tax reduces your income by 10%. If you only need to spend half of your income, a 10% sales tax reduces your income by 5% - or less, if the money you don't spend earns interest.