4 ms·

The poorer you are the higher a percentage of your money you typically spend.

• lotsofpulp 4y ago
  The margin is not based on the percentage of your income/wealth that you spend, it is based on the amount you spend. Like income. For example, $0 to $50k per year spend is taxed at 0%, then $50k to $100k is 10%, etc. Although a continuous exponential function is preferable than discrete cliffs.
  • whiddershins 4y ago
    Are you saying that is how VAT works? Because I have no idea how any could keep track of all that.
    • lotsofpulp 4y ago
      No, marginal sales tax is not in effect anywhere. Assuming electronic payments, I could see it being relatively easy to track everyone’s spending since bank accounts/credit cards/etc would be tied to tax ID #s. Of course, there are all sorts of issues with possible downsides and jurisdictional issues.