Title: Why is Sales Tax Considered Regressive? (Sales Tax Infographic)
Headings: Why is Sales Tax Considered a Regressive Tax? (Infographic)
Why is Sales Tax Considered a Regressive Tax? (Infographic)
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Content: But it refers to a tax that is unfairly imposed more strongly on lower income families. Sales tax is regressive. Why? Because people who earn less pay a larger percentage of their salary in the form of sales tax, as compared to those who earn more. In fact, based on percentage of salary, people in the lowest bracket pay more than DOUBLE what the top 1% pay. Compare that to income tax, where (not counting deductions), the rich pay a higher percentage than the poor. Income tax is called a "progressive tax", because the burden falls more strongly on those who earn more. You may wonder if there’s a middle ground. There is – it’s called a "proportional tax". That’s where everyone pays the same percentage of what they earn.