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by legitster 528 days ago
Sales tax is not regressive per se. It's just much less progressive than an income tax. Rich people still pay more overall since they spend more money.

An example of a regressive tax would be something like cigarette taxes - poor people would actually spend a larger share of their income since they are also more likely to smoke.

1 comments

People with lower incomes do spend larger a portion of their money on things that incur sales tax.

Higher income people spend more of their money on investments and other assets.