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.
REGRESSIVE TAX: It is a type of tax that takes a higher tax rate (in %) from the low-income people than from the high-income people. It is the opposite of progressive tax since it takes a larger percentage from the low-income people rather than the high-income people. PROS & CONS. Progressive Tax: