Lower income people spend - as a proportion of their income - far more of their income than higher income people. This makes the “nothing but sales taxes” approach much more regressive than it initially seems, despite often being touted by economists as a progressive approach to taxation.
Lower income people spend - as a proportion of their income - far more of their income than higher income people. This makes the “nothing but sales taxes” approach much more regressive than it initially seems, despite often being touted by economists as a progressive approach to taxation.