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Sales tax is like inverting the income tax brackets. Suppose the rich can buy everything they need with 1% of their income, sales tax is 10%. Then, the rich ar
by PostOnce 9y ago
Sales tax is like inverting the income tax brackets.
Suppose the rich can buy everything they need with 1% of their income, sales tax is 10%. Then, the rich are paying 0.1% income tax. If the poor have to spend 20% of their income on the same necessities, they are paying twenty times more tax per amount of income.
- rayiner 9y agoBoth things are true. Income taxes are less efficient, sales taxes are more regressive.
- klipt 9y agoPossibly the most efficient and progressive tax is a land value tax: https://en.wikipedia.org/wiki/Land_value_tax https://en.wikipedia.org/wiki/Land_value_tax
- remarkEon 9y agoI’m not sure what your point is. That wealthy people would spend a lower percentage of their total income on necessities, and thus a lower tax per income dollar, sounds like a truism.
- BurningFrog 9y agoThis argument assumes the the rich only spend 1% of their income.