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Originally Posted by Gypsy  Sales tax does not treat everyone alike. It's a regressive tax that hits the poor MUCH harder than the rich. The only way it would hit people the same is if 8% (don't tell me .0795 isn't 8%) left everyone with the same amount (not percentage) of spendable income. |
But wouldn't you say that the poor spend less than those that have more money. I have found through the years that the more money I make, the more I tend to spend. I think that holds true for everybody. Thus, those with more money pay more sales tax.
Case in point, if a poor family goes out to eat, they will more than likely go to a fast food establishment. Those families with more money will tend to go out to a Casey's Cowtown or Central Station type eatery. The poor family will pay $20-40 for there fast food meal for the family, the family with more money will pay $50-80 to feed their family at the nicer eatery. As you can see by this example, the family with more money pays more sales tax.