3 ms·

Sales tax results in the poor and middle class paying vastly higher tax rates as a percentage of their income compared to the rich.

• u801e 9y ago
  If we were to exempt things like food and rent from the tax, then that may address that issue to some extent. Regardless, the rich do tend to spend a lot more money compared to the middle class or poor.
  • hamandcheese 9y ago
    If you’re going to make arguments like that though it’d be easier to just keep things the same. Yes, the rich pay way more taxes in absolute terms but equal or less in relative terms.
    • u801e 9y ago
      > If you’re going to make arguments like that though it’d be easier to just keep things the same. For the government and businesses, that may be true, but if taxes were sales/VAT based instead of income based, then it would remove a significant burden from individuals (since they would no longer have to file taxes every year).
      • hamandcheese 9y ago
        True, never thought of that!