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Article #21717

Re: When does the sales tax go DOWN?

#21717
From: Rob Bickel
Date: Sun, 10 Jul 1994 20:51
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In article <1994Jul8.234921.19651@ttinews.tti.com> paulb@harley.tti.com (Paul Blumstein) writes:
>In article <2vka8k$4r@crl.crl.com> dk@crl.com (David A. Kaye) writes:

>+tax), the sales tax is spread evenly.  This allows the rich to get off 
>+paying less, but getting better services (police will generally respond 
>+faster to a rich neighborhood than a poor one).
>
>Huh?  Beyond the basic food & shelter, etc., the wealthy are heavier
>consumers than the poor.   The more you buy, the higher sales tax that
>you pay.  A new Lexus/BMW/Caddie provides more in sales tax revenue
>than a used Ford Escort.  Eh? Also the rich tend to buy more "garbage"
>than the poor.  Please re-think your statement.

Sales tax is a regressive tax.  Proportionately, poor spend a large
portion of their income on goods that have the sales tax; therefore,
pay a larger percentage of their income on the sales tax.  You can only
spend so much.        

Rob
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From: bickel@scorpio.Berkeley.EDU (Rob Bickel)
Newsgroups: ca.general,la.general
Subject: Re: When does the sales tax go DOWN?
Date: 10 Jul 1994 20:51:18 GMT
Organization: University of California at Berkeley
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Distribution: ca
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