Date: Tue, 4 Feb 2020 18:13:50 -0500
From: tonyblake
Subject: RE: Proposed Sales Tax Increase
The argument against sales taxes is that they are more regressive than other types of taxation. There are three main reasons cited:
1. Compared to income taxes, which mostly have a minimum income level at which you do not have to pay taxes, everyone is forced to pay sales taxes, no matter their income.
2. Income tax rates are generally graduated – the higher your income, the higher the tax rate on that income. Sales taxes, however, stay the same no matter your income level. Property taxes are likewise generally fixed to the value of the property with the wealthier properties paying more.
3. Wealthier people spend a smaller portion of their income on goods and services than poorer people. Wealth is not the same thing as income, but the two are closely related.