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.
10. Generally, most economists feel that a _____type of income tax is a fairer way to raise government revenue than a sales tax. a. regressive. b. proportional. c. flat-rate. d. progressive. ANS: d. A progressive tax is argued to be fair because people with higher incomes pay more tax. 11. The federal personal income tax is an example of a (an) a. excise tax. b. proportional tax. c. progressive tax. d. regressive tax. ANS: c. Since the marginal tax rate increases with income, the federal ...