I don't see how this will be a tax increase. It increases purchasing power. Poor people buy less so they pay less like they pay less now!
If you spend 100 percent of your income, as the poor do, your effective tax rate is 15 percent.
If you only spend, say, 60 percent of your income, as a more well-to-do person may, your effective tax rate is 9 percent.
How are the poor paying less? Do you mean less in absolute terms due to their lack of money?
Generally speaking, yes. That's the idea, but in the derogatory way you'd think. Who says that rich people don't spend all of their money? The idea is that they will buy lots of stuff, such as their 50 sports cars and 3 yachts, and therefore pay more in taxes. It would be preferable to have the sales tax be bracketed in terms of inherent value/necessity, but how would one go about determining that?
I say the rich don't spend all their money. Evidence: the increasing concentration of wealth in the richest households. As to your next comment, that's really too ridiculous to respond to.
