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The problem is that also poor people have to buy things, and they'll end up paying more taxes than they had with the income tax because there is no progression.

There are two things that make income taxes social:
One is that you pay taxes in percentage of your income and not an absolute amount. This might would happen with sales taxes too, but I don't think that you can assume that poor family with half the income of a richer family also buys exactly half as much things as the richer family; it would be more like 2/3 I guess. For example, the poor family probably won't go on holiday, while a rich family may will travel to a foreign country where they don't have too pay the american sales tax.

The other thing is the progression, and this would fell flat completely with a sales tax of course.


Of course there are ways to make a sales tax social, for example you can free food from the tax. But the question is if the tax brings enough money for the state if such things are done.



Currently Playing: Skies of Arcadia Legends (GC), Dragon Quest IV (DS)

Last Game beaten: The Rub Rabbits(DS)