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> An increase in resource taxes doesn't necessarily mean an increase in consumer good prices. Because income tax is taken out of a worker's gross pay, the Ex't
by etjossem 12y ago
> An increase in resource taxes doesn't necessarily mean an increase in consumer good prices.
Because income tax is taken out of a worker's gross pay, the Ex'tax plan is not going to substantially impact how much companies pay their workers. It will simply increase take-home pay. Assuming it's a revenue-neutral tax shift, three things happen:
- Workers with low incomes get a little bit more take-home money every month.
- Workers with high incomes get a lot more take-home money every month.
- Milk and eggs are uniformly more expensive.
That's why this is a regressive move that hurts people with low incomes.