Sales taxes are not particularly regressive; they're not progressive.
Opponent of general sales taxes correctly point out that lesser income earners must spend a greater proportion, and higher income earners need not, and generally do not spend their entire incomes for products that would be subject to a general sales tax. Lesser income earners generally must spend a greater proportion of their incomes for necessities.
The wealthy have discretionary income, the poor have little or none.
The expenditures of the wealthy that would not be subject to a general sales tax, are currently items that generally now reduce their taxable incomes. Proportional to their individual revenues, their expenditures that would be subject to a general sales tax are no less, and I suspect exceed the proportions of their revenues subject to our current federal individuals' income taxes.
But for those that do not pay income taxes, a general sales tax would be a regressive tax.
I'm a proponent for replacing a significant proportion of taxes levied only upon wages and payrolls, and replacing those revenues with a general sales tax. FICA is the most regressive of federal taxes.
Its effect is most severe upon the wages of the poor and is of no consequence to individuals' incomes other than wages.
Refer to the thread:
https://www.justplainpolitics.com/showthread.php?37379-FICA’s-our-most-regressive-federal-tax
Respectfully, Supposn
Opponent of general sales taxes correctly point out that lesser income earners must spend a greater proportion, and higher income earners need not, and generally do not spend their entire incomes for products that would be subject to a general sales tax. Lesser income earners generally must spend a greater proportion of their incomes for necessities.
The wealthy have discretionary income, the poor have little or none.
The expenditures of the wealthy that would not be subject to a general sales tax, are currently items that generally now reduce their taxable incomes. Proportional to their individual revenues, their expenditures that would be subject to a general sales tax are no less, and I suspect exceed the proportions of their revenues subject to our current federal individuals' income taxes.
But for those that do not pay income taxes, a general sales tax would be a regressive tax.
I'm a proponent for replacing a significant proportion of taxes levied only upon wages and payrolls, and replacing those revenues with a general sales tax. FICA is the most regressive of federal taxes.
Its effect is most severe upon the wages of the poor and is of no consequence to individuals' incomes other than wages.
Refer to the thread:
https://www.justplainpolitics.com/showthread.php?37379-FICA’s-our-most-regressive-federal-tax
Respectfully, Supposn