yawn
Ayup. And as I stated, the term regressive, does not fit to sales taxes in any state of the nation. Basic necessities are not subject to sales taxes. Thus, no matter how much people spend on "basic" necessities, by % of income, it does not matter. Those items are not subject to sales tax.Nearly all states (45 as of 2002) have instituted some type of general sales tax. State
sales tax rates range from 2.9% (Colorado) to 7.25% (California11). A few states levy a
lower rate on certain goods considered to be necessities, such as food and prescription
drugs. For example, the general sales tax in Illinois is 6.25% but food and drug sales are
taxed at only 1%.In most states, localities can charge a separate sales tax. While local sales taxesOther states with sales taxes exempt some necessities from taxation
entirely.
are generally lower than state sales taxes, there are exceptions. In New York the state
sales tax is 4% but local sales taxes are often higher than 4%.
Sales taxes tend to be quite regressive. The reason is that low-income households tend to
spend a larger share of their income on taxable items than high-income households.
Consider Massachusetts a state with a typical sales tax rate of 5%. According to the
Institute on Taxation and Economic Policy (McIntyre et al., 2003), Massachusetts
households in the lowest income quintile pay about 2% of their total income in state sales
taxes. Meanwhile, those in the top income quintile pay only about 0.8% of their income
in state sales taxes.o, here is an actual study.
http://www.ase.tufts.edu/gdae/Pubs/wp/03-10-Tax_Incidence.pdf
Now, I know, RKM, you spend your time in the bat shit crazy con web sites. So a simple concept of sales taxes being regressive would be beyond your cognitive reach. But it is OK, me boy. Beleiving what you want is just fine for you. It is all you can really help for. That is how it goes for CI's (congenital Idiots). Remember, it is not your fault. Just bad luck.
Now, you should be immediately angry. At those clowns who you believed when they told you that sales taxes were not regressive. Though, a smart person might have read a bit about it...........