It's the opposite, people who earn more money spend a lower percentage of it, the rest of it goes into savings - This money avoids the sales tax entirely. The person who has to spend everything they earn faces both the income tax and the sales tax.
If you eliminate sales tax and raise income taxes to the point where the government is collecting the same amount of revenue a higher proportion of the tax is coming from people who who spend less of their money than at present, the people who earn more.
There is also more efficiency when it comes to beneficiaries, the money they are given isn't re-taxed, you could give them less money and they would have the same purchasing power AND you would eliminate a layer of bureaucracy while you're at it.
You can still have 'other' taxes on top of this, for alcohol, fuel, smokes etc.
Good point about criminals though, I hadn't thought of that. Then again with drugs and prostitution legal (as they should be) you wouldn't have this problem to the same extent.
If you eliminate sales tax and raise income taxes to the point where the government is collecting the same amount of revenue a higher proportion of the tax is coming from people who who spend less of their money than at present, the people who earn more.
There is also more efficiency when it comes to beneficiaries, the money they are given isn't re-taxed, you could give them less money and they would have the same purchasing power AND you would eliminate a layer of bureaucracy while you're at it.
You can still have 'other' taxes on top of this, for alcohol, fuel, smokes etc.
Good point about criminals though, I hadn't thought of that. Then again with drugs and prostitution legal (as they should be) you wouldn't have this problem to the same extent.
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