Thread: Dodge City Commission Candidates Forum, Sat. March 15, 10 a.m.
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Old 03-16-2008, 08:05 PM
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Regressive versus progressive tax structure
as I said, isn't something that people here get.

An example of why sales tax is regressive.
Regressive, Progressive taxes/taxation explained.

"If progressive taxes soak the rich, and regressive taxes soak the poor, why do we almost never hear the term, "soak the poor"? Perhaps that is a "loaded" question?

Let's imagine two frugal traveling salesmen. They each have to buy a new car every four years to (say) keep up appearances, and they need reliable transportation.
(One guy makes 20K, the other 300K)
Run the numbers on a the RATE of total income each pays on on 5% sales tax.
Poor Boy buys a $20,000 car pays $1000 or 5.0% of his income.
Rich Boy buys a $60,000 car pays $3000 or 1.0% of his income.
Poor Boy has 5 times the tax bite, or rate of tax on a car. Rich Boy hardly feels sales taxes. Then run the numbers on a $30 pair of Levis, and the tax rate discrepancy triples.
Sales tax is NOT a flat tax."

Quote:
But wouldn't you say that the poor spend less than those that have more money...
Gee, huh, wonder how you figured that out?
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