Critical Reasoning (CR) | Re: Economist: Sales taxes do not provide a fair alternative to income

­B. could tax a smaller percentage of the earnings of high-income households than of low-income households

The economist argues that sales taxes are unfair because low-income households spend almost all their income on necessities, while high-income households can save a significant portion.

A sales tax is levied on purchases, so a household spending a larger portion of their income will pay a higher percentage in sales tax compared to their income.

Meanwhile, high earners, with more savings and less spending (in percentage), would pay a smaller percentage of their overall income in sales tax compared to low earners who spend most of their income.

Statistics : Posted by Gemmie • on 01 Aug 2023, 12:00 • Replies 4 • Views 5202

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