(no subject)

[gfish]

Huh. It strikes me that, with modern technology, one could have a progressive sales tax.

Comments

[craigp.livejournal.com]

i must be missing something; are you implying modern technology is required in order to have a progressive sales tax?

[gfish.livejournal.com]

Not absolutely, but it doesn't strike me as particularly practical otherwise. I'm mostly just interested in the theoretical breakage of the standard 'sales tax regressive, income tax progressive' rule.

[grinninfoole.livejournal.com]

The basic idea is that a sales tax tends to be a flat percentage, and that it therefore affects those with less money, who tend to buy more stuff that they need, than those with a lot, who tend to buy a lot of stuff that they just want. Thus, someone who earns little money every year winds up paying a larger chunk of it to the government than someone who earns a lot.

[gfish.livejournal.com]

Right, so with a fancy system to apply a varying sales tax based on the buyers income, you could make it progessive.

Not saying this is a wonderful idea, I just find the theoretical possibility interesting.

[grinninfoole.livejournal.com]

OK, in theory, sure. In practice, if you come into my comic book store and buy a $75 Absolute edition of Watchmen, do you really want to reveal your financial status to me so that I, as collector of the sales tax, can charge you the correct amount? Setting aside the hassle for me, having to calculate a different point of sale price dependent not upon me or upon the product, but upon the personal information of a customer who is otherwise a total stranger? It might be possible to do, but I don't think it would be better than extant practices.