Reply #107: Totally bogus. [View All]

Compare Poor Guy A and Rich Guy B.

A makes $20,000 a year. B makes $250,000.

Say your national sales tax is 20% (low according to most estimates). Then let's say A buys a used Pontiac for $2000 and B buys a brand new Lexus for $60,000 (I assume that's typical for a Lexus?)

A pays $2000 x .2 = $400 tax. B pays $60,000 x .2 = $3000 tax.

$400/$20,000 = A's effective tax rate = 2%

$3000/$250,000 = B's effective tax rate = 1.2%

B buys a much more expensive car, and yet only 1.2% of his income goes towards the sales tax on it. A buys a cheap car yet pays almost twice the percentage of B based on income.

SALES TAXES ARE REGRESSIVE AND UNFAIR!