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I couldn't reply to null0pointer directly. Sales tax is considered regressive because it is a flat percentage X% of spend. Poor people spend close to 100% of

I couldn't reply to null0pointer directly. Sales tax is considered regressive because it is a flat percentage X% of spend. Poor people spend close to 100% of their income, so it is basically an X% tax. Rich people might spend closer to 10% of their income so it is an X/10% tax on rich people.

thret 6y ago
That's why basic, necessary goods are not taxed, only luxury items. We have a GST in Australia and poor people effectively do not pay any tax on purchases.
- freedomben 6y ago
  Most sales tax proposals I've seen will exempt food and other "necessities" for exactly this reason. With how complex income taxes are, I'd love to get a serious discussion going about a sales ax replacing it.
  - devdas 6y ago
    Or a wealth tax.
- thebean11 6y ago
  The definition of basic, necessary goods is extremely narrow in the US. Poor people still pay plenty of sales tax.
- Splendor 6y ago
  Unfortunately that's not the case everywhere. I live in a state in the US where even groceries have sales tax.