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by nknighthb 4697 days ago
HN delays reply links based on how deeply nested replies are. Though you can find your way around that...

A regressive tax has a specific definition. It's a tax whose effect is to take a greater percentage of income the poorer you are. Sales taxes, like all flat taxes, are inherently regressive. If I make $10,000/year, all of it is getting spent, which means that less any exemptions (which vary by state, but may include things like staple foods), an 8% sales tax eats 8% of my income.

If I make $100,000 year, I may well only spend half of that, which means only 4% of my income is taken.

This is evil in general because I believe, as you clearly do not, that "governing bodies" are simply instruments of civilized society, and those making the most money are reaping the greatest rewards from that society, and should be required to contribute back a correspondingly greater amount.

But it is especially evil because if I'm making $10,000, I'm just trying to survive, and the sales tax makes that harder, while if I'm making $100,000, I'm way past survival, and well into luxury territory.

1 comments

Governments usually try to work around that, including the staple food exception you mentioned, but that makes the whole system a mess of exceptions and exceptions-to-exceptions.