this post was submitted on 01 Mar 2025
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Degrowth
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A sales tax disproportionately impacts people who are lower income, as a greater percentage of their earnings go towards purchasing essential goods - and defining exclusions for sales taxes is a whole exercise. Food, easy; heat, ok. But what if i heat with electricity and also drive with electricity? Should clothes be taxed? Where do we draw the line on what constitutes luxury clothing when people buy carhartt for very different reasons depending on their income source. What about diapers, people choose to buy disposables. Condoms? Period products are a shoe-in but what about cups or reusable panties?
I don’t hate the idea, but it is complex. Like most tax schemes…
it does not if all transactions are taxed. every stock and bond sale for instance.