Title: Is a National Sales Tax Really Fair?
Headings: Is a National Sales Tax Really Fair?
Is a National Sales Tax Really Fair?
Content: Critics suggest that a national sales tax is regressive, favoring the rich. This criticism depends on how you measure rich, that is, what you use as a denominator. If you measure dollars spent per dollars of income, the tax is regressive. The poor spend a greater percentage of their income. Advocates try to address this issue by providing a prebate of taxes up to the poverty level. But income is only one measure of rich. It measures your productivity and the value of your yearly labor. Advocates of the fair tax suggest this should not be the deciding factor of how you ought to be taxed. Another measure of rich would be those who have a higher standard of living. Those who live rich would have to pay tax on whatever portion of their assets they choose to spend.