At 02:08 PM 1/30/2009, you wrote:
Disproportionate to what? Take sales tax - the poor tend to pay less
sales tax, as more of their expenditures are on non-tax items such as
food. With the earned income tax credit, their income tax can go
negative, offsetting their payroll tax in whole or in part (usually in
part as far as I know). Add in various forms of means tested
assistance, and there are indeed some who on balance are net
recipients rather than tax payers.
You make some general assumptions there.
Two of the three states I have lived in tax all food and general
merchandise. TN has a high local sales tax 9.75% and we paid that on
all groceries and GM except Prescriptions. TN had no state income
tax. I presently live in AL. and they too charge full sales tax on
all groceries and GM except for Prescriptions and we do have a state
income tax. Local sales tax is 9%.
Oh the threshold for state income tax is low. I think AL has the
lowest threshold for state income tax for all states.
How is that not disproportionate? I have to spend most of my income
as it is not high enough to afford me a lot of discretionary
income. Therefore I pay tax on most of my purchases.
Stewart
Rev. Stewart A. Marshall
mailto:[email protected]
Prince of Peace www.princeofpeaceozark.org
Ozark, AL SL 82
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