True Cost Economics is currently creating a sizable ruckus in the academic world, and its value as a system of thought is starting to be recognized by the economic establishment. -- Brendan Themes Go there >>True Cost Economics
Combined with the fact that sales tax is tied to consumption rather than income, this leads some to the conclusion that low-income individuals and families pay a greater proportion of their incomes in sales taxes, therefore sales tax is regressive. You're supposed to read regressive as unfair.
Sale tax is a compulsory contribution to state and local revenue, imposed by those governments on retail sales (sale of tangible personal property for use or consumption). Sales tax is actually a combination of occupation tax and use tax. Occupation tax is imposed on a sellerâs receipts, and use tax is imposed on a the amounts paid by customers. Sellers owe the occupation tax to the stateâs department or revenue, and reimburse themselves by collecting the use tax from their customers.