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.
For sales tax deductions, you can either claim the amount you paid over the year -- which means keeping a lot of receipts -- or take a standard deduction set by the IRS. This amount varies with sales tax rates in each state, as well as your income level and exemptions.or example, if your state imposes a general sales tax of 6 percent but a higher sales tax on cars of 8 percent, you can deduct only $1,200 in sales tax on a $20,000 car, not the full $1,600 you paid.