[lbo-talk] Progressive taxation vs flat tax

Doug Henwood dhenwood at panix.com
Thu Aug 5 06:42:53 PDT 2004


R wrote:


>a flat tax is the most regressive tax there is.

No it's not - a flat tax is flat (and if there's a large exemption, it can be moderately progressive up to a point). A sales tax is regressive because the poorer people are, the larger the share of their income they consume. People at the bottom of the distribution could end up paying many times the percentage of their income in sales taxes as those at the top.

Doug



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