Hacker News new | ask | show | jobs
by GFK_of_xmaspast 4021 days ago
By the double tax hypothesis, how come then I have to pay sales tax on things I buy using money I earned from income that's already been taxed.
2 comments

It's only considered "double taxation" when the tax hits wealthy people[1]

1: http://assets.amuniversal.com/921b06d016420130ff2c001dd8b71c...

Sales taxes are deductible in the US, sort of. You can deduct either state and local sales taxes or state and local income taxes. No idea what the rationale for that is, but if you live in a State with no or very low income tax and deduct your sales taxes, it's kind of like you're not getting taxed twice.

http://www.irs.gov/Individuals/Sales-Tax-Deduction-Calculato...