Question

“Sales taxes are fairer than income taxes because sales taxes cannot be avoided by the rich.” Discuss & evaluate this idea, using tax policy concepts to provide support for your evaluation. Is it possible to design a sales tax that is more progressive than a personal income tax? What would this tax structure look like?

Answer 1

The national sales tax are doubled as fair tax.no taxes would be put on necessities like the food and also no taxes on the items paid used and purchased. National sales tax empowers regarding the amount of money moving to the Federal government.income tax refers to the amount to be paid upon the total income gained from the business to the federal and the state government.sales tax influencers the expenditure on consumption and also savings to the extent of increase of the goods and services prices by two ways.individuals real income are reduced by the way of increase in the taxes induced price which is affecting the spending as well as savings as per the relative elasticity of the schedule of the consumer spending and savings.a progressive tax has increased impact financially on the individuals having higher income than those having lesser income.sales tax is regressive tax with further sales tax a greater proportion of income is being taxed to the low-income people than the rich.