A sales tax would be the biggest scam ever put on by the rich to screw the poor and middle class.
Let's say that goes and the rate is 20% and we have two people. One makes 30k and the other makes 300k. The guy making 30k has to spend every penny that he makes to get by, therefore his tax rate is 20% of his total income. On the other hand the guy making 300k might have 100k left at the end of the year. As a result, he only spent 200k. He pays 40k in taxes, resulting in a 13.3% tax rate.
People making over 300k pay currently pay over 30% and they contribute over 35% of the total income tax generated. This group as a whole would have their tax rate fall to less than half of its current rate. As a result, instead of getting 35% of the taxes from the top 1%, we are getting less than 20% from them. That extra burden is therefore shifted to the middle class and poor.
|