On Thursday, December 3, 2020 at 11:40:01 AM UTC-5, Dave Smith wrote:
> On 2020-12-03 10:50 a.m., Cindy Hamilton wrote:
> > On Thursday, December 3, 2020 at 10:31:22 AM UTC-5, Graham wrote:
> >> On Thu, 3 Dec 2020 03:23:23 -0800 (PST), Cindy Hamilton wrote:
> >>
> >>>
> >>> Tennessee's method is regressive, hitting the poor more severely.
> >> All flat taxes are!
> >
> > Sales tax is more regressive than income tax. Suppose it takes $10,000
> > in taxable purchases to keep body and soul together. Someone who makes
> > $20,000 pays tax on 50% of their income, but someone who makes $100,000
> > pays tax on 10% of their income.
> ????? If there is a basic $10,000 exemption the $20,000 earners pay tax
> on 50% on their income. People with $100,000 earnings who get the same
> $10,000 exemption pay tax on 90% of their income, not 10%.

I'm talking about sales tax, not income tax. Is there such an exemption in
places where there is no income tax? If you don't file a tax return,
where does the exemption come into play?

Sure, it's complicated. I figured the "bar napkin" analysis that I provided
was sufficient for this venue.

> A lot of the basics in life are tax exempt in most places, like
> groceries. Sales tax is almost an attempt to put a higher tax burden on
> those with more money. They may pay the same percentage rate for sales
> tax, but they are buying more, so spending more.

But not proportionately more. A person with a small income spends
all of it. A person with a large income saves some of it.

Cindy Hamilton