No. of Recommendations: 0
>> This is NOT inherrently true. State sales tax programs are regressive, but that does not have to be the case. The (horribly named) FairTax is not regressive in nature because of the rebate checks that everyone receives regardless of income or spending level. <<

Not only that, but most sales taxes exempt food. Some also exempt items like clothing and medicine. Since the lower-income households tend to spend most of their money on these "essentials" -- which are often not taxed -- it's not a foregone conclusion that they are spending a greater percentage of their income on sales tax.

Just the same, any such concern can be alleviated with some form of a rebate to offset the first $X typically spent on sales taxes. It's sort of like creating a 0% bracket in the federal income tax through the standard deduction and personal exemptions.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.