Quote:
Originally Posted by opendoor
That math doesn't make a whole lot of sense. You can't just compare income tax and sales tax rates straight across and equate them.
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Why not? If today I am paying 8 percent of my income and tomorrow I am paying an additional 5 percent of my spending. I understand that you won't pay the tax on your savings and food, but the savings rate in Ab is close to zero. Food is a factor but is it 10 percent of a persons budget? Maybe another 10 percent isn't taxed so that puts the effective sales tax at 4 percent which is a 50 percent tax increase over what I was paying.