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While technically rich people consume more than the poor in absolute numbers, they consume a smaller percentage of their income than the poor, so a consumption
by PeterisP 6y ago
While technically rich people consume more than the poor in absolute numbers, they consume a smaller percentage of their income than the poor, so a consumption tax is inherently regressive, taxing rich people less.
- refurb 6y agoSource? If you exempt the necessities of living (food, etc) I’d suggest the rich would be tax on a far bigger percentage of income than the poor. And even if they didn’t spend it, any capital gains or interest income would still be taxed too. And you’re ignoring the fact that a consumption tax would capture spending from black market income as well. Expanding the pool of income taxes.
- ac29 6y ago> And even if they didn’t spend it, any capital gains or interest income would still be taxed too. The post you are responding to is talking about getting rid of income taxes. Those are income taxes.