MLive Media Group: You ask, we answer: Proposal 1, regressive taxes and electric vehicle fees
media mentionSales taxes, which would increase under Proposal 1, are considered “regressive” because they can disproportionally affect low-income workers, who tend to spend a larger portion of their earnings on taxable goods than wealthier residents.
The Institute for Tax and Economic Policy, a left-leaning research group, currently ranks Michigan in the middle of the pack for tax fairness — 29th out of 50 states — but generally argues that states with higher sales taxes tend to produce more income inequality.