Originally Posted By: driftfishin
Sales tax takes consumption, income tax taxes wealth creation. Income tax doesn't hurt the rich most, it hurts the middle class most.

The rich generally don't have "income" or a paycheck. They have huge offshore accounts, tax shelters and income tax free municipal bonds. But they pay sales taxes when they buy yachts, pearl necklaces, mercedes, fur coats and eating out.

The poor guy with a beater car, buying food at the grocery store and spending most of his income on rent, doesn't pay hardly any sales tax.


Actually, that's a complete steaming heap of crap.

Sales Tax systems are the most retrograde of all.

An 8% sales tax taxes all people roughly the same, it's just a much heavier burden for the lowest income levels to cover that expense on a week to week basis. For example, if you make $2000/mo you pay $80 in tax on your monthly purchases, it's going to be a 4% monthly rake, but if you make $8000/mo the same expense would be 1% of your monthly income.

Simple math. You failed. Welcome to the darkside.