"I you make $10,000 per year and I make $100,000 per year and we both buy a boat for $1,000 at say, 10% tax then we both pay $100.
That $100 is only 0.1% of my income and 1.0% of your income. That's a regressive tax system. "
No, that is a fair tax system. Why should the second man pay more sales tax for the same thing?
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"I you make $10,000 per year and I make $100,000 per year and we both buy a boat for $1,000 at say, 10% tax then we both pay $100.
That $100 is only 0.1% of my income and 1.0% of your income. That's a regressive tax system."
No, that is a fair tax system. Why should the second man pay more sales tax for the same thing?
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It's a regressive tax. If you pay a larger percent of your income for tax on an item than someone making more than you, then that is a regressive tax.
You have to think in terms of "percent of income."