Re:Elon Musk: Only a Carbon Tax Will Accelerate the World's ...
by brandonmenc on Thursday December 03, 2015 @03:43AM
(#10668559)
> how does a spending tax disproportionately affect the poor?
Because they need to spend more of their income in order to survive.
If you spend all of your income, a 10% sales tax reduces your income by 10%. If you only need to spend half of your income, a 10% sales tax reduces your income by 5% - or less, if the money you don't spend earns interest.
Because they need to spend more of their income in order to survive.
If you spend all of your income, a 10% sales tax reduces your income by 10%. If you only need to spend half of your income, a 10% sales tax reduces your income by 5% - or less, if the money you don't spend earns interest.