this post was submitted on 18 May 2026
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Sales taxes are regressive. The poorest people pay way more of their income to buy things at stores. Therefore they are getting taxed a lot more than someone who saves money because they have bigger incomes
That actually makes sense, thank you
It's only regressive when framed as a tax on consumers - which is of course easier to do in a ridiculous country that allows retailers to advertise prices without all the retailer's costs included.
A properly organised VAT type tax is not regressive - it's a tax on corporations that buy product for cents and then sell them on for dollars, pocketing the difference. I've no idea why sales taxes bring out this "but won't somebody think of the corporations!" handwringing.
I really enjoy your snarky tone, but can you explain how any consumption tax regardless of labeling are not regressive when poor people consume a lot more of their income than people with people with higher incomes? Sure you can mitigate this by only taxing x products or offering rebates to poor folk. But it just seems like it is inherent to the system.
It seems to me that progressive income taxes, direct taxes on profits of corporations, wealth taxes, and the like are much better targeted and don’t harm the poorest among us. But I’m from a “ridiculous country” so what do I know?