Quote:
Originally posted by: southern_sweets
Going to an all sales tax system is the stupidest thing I've ever heard. And, absolutely puts those at lower incomes and the middle class at a disadvantage. Reality is the lower your income the higher percentage of it goes to payment of goods and services which would be highly taxed under such a system. The upper middle class and wealthy are able to save and invest more of their income, which would be tax free.
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A more fair way to do sales tax is to tax each item. Cheaper items are taxed at a lower rate and more expensive items are taxed at a higher rate. Thus the guy who buys the BMW pays a higher tax rate than the guy who buys a pair of shoes at Wal-Mart.