Posted by Ray Kidder on 11/10/2008, 5:55 pm, in reply to "Re: Working for sales"
71.241.226.42
Don,
You wrote:
"There is no need to worry about graduating the tax for poor people - if a person truely is poor he can buy his food, clothing, and shelter and pay absolutely no tax at all."
Would food, clothing, and costs of shelter be tax free?
Suppose you have two customers at (say) Home Depot. Both customers purchase a gallon of maplewood fence stain/wood preservative for $12.99. A 30% sales tax brings the total price up to $16.89. One has an income of $20,000 per year and works for a lawn maintenance company, while the other has an income of $200,000 per year and works as a country club manager.
How is it the rich one pays the sales tax, but the poor one avaoids the sales tax?
Also, what if both customers went into the same shoe store and purchased shoes? Would $80 leather shoes to look nice at the country club be taxed, while $80 work shoes that a lawn mainteance person uses be tax free? What if the country club faces hard times, and his pay dropped to only $20,000 per year?
Ray Kidder
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