Sales Tax

[Magenta]

Should it be done away with completely?

 

[airham]

I believe that it should. It's a regressive tax (meaning that poor people pay a higher percentage of their income in sales tax than do wealthy people) , and in a time where income inequality is an increasingly pressing issue, there's no good reason to nickel and dime the working class rather than making up the gap with progressive taxes, such as taxes on capital gains, property taxes, and estate taxes.[DOUBLEPOST=1506112787][/DOUBLEPOST]You misunderstand. A regressive tax means that poor people pay a higher percentage OF THEIR INCOMES than wealthier people. This is because poor people spend a higher percentage of their income, whereas wealthy people are more likely to save or invest their money. Because they spend a higher percentage of their income, poorer people pay a higher percentage of their income in sales tax.

Oop, she deleted that comment before I sent that second part. Now I look crazy. Lel.

 

[Aka]

Agreed with Airham, since sales tax is basically a flat rate charged to each constituent in a certain jurisdiction, then lower income individuals feel a higher cost burden due to income inequality. Unfortunately it’s their sacrifice minute in the grand scheme of the economy, which contributes to the supposed greater good of generating general or special purpose fund revenue for local, state, and federal governments that finance operations and creation of infrastructure, public utilities and services, etc. for the overall well-being of society. Taxes are a necessary evil, but must be justifiable to the most good for the most people at least. So I feel sales tax shouldn’t be gotten rid of. It’s a small price to pay for most middle and higher income individuals, while understood lower income can struggle to pay it. They do have other means of governmental assistance that others pay through their taxes to fund means of living like Supplemental Security Income, cash assistance programs, and grants/programs to provide non-cash benefits. Though it is tough to be of lower income status, it’s a lot worse in developing countries.