Thread: Productivity
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John Larkin John Larkin is offline
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Default Productivity

On Fri, 07 Sep 2007 15:38:31 -0400, Chuck Harris
wrote:

Richard The Dreaded Libertarian wrote:


Well, you don't tax grocery store food or medical supplies, for one thing.
Restaurant food, take-out pizza, convenience store food, all that's
taxable because they're luxuries.


Once you start making exceptions, you are on your way to a mess of
a tax system like we have now.


And if you go to Kmart and buy a $5.00 pair of jeans, you pay $0.50 tax;
you go to Saks and buy a $250.00 pair of jeans, you pay $25.00 tax.

What does "regressive" mean anyway?


Basic costs of living are a larger percentage of a poor person's income
than they are of a rich person's income. If you tax those basic costs with
a "sales tax", it is a regressive tax. This is because the tax is a larger
percentage of the poor person's income than it is of the rich person.



It's not regressive, it's flat. Regressive taxation is taxation that
has lower rates for bigger incomes or purchases.

This is because the tax is a larger
percentage of the poor person's income than it is of the rich person.


But we're not talking about an income tax, we're talking about a sales
tax.

Taxes can be good for the populace, or they can be emotionally "fair",
but they can't be both.


John