“A problem with relying on sales taxes is that, compared with income or property taxes, they hit the poor the hardest. “Low-income people spend most, if not all, of their income on just getting by,” said Matt Gardner, executive director of the Washington, D.C.-based Institute on Taxation and Economic Policy (ITEP). Even though wealthier people spend more money, they also save and invest. So a big chunk of their income is not subject to a sales tax.”
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Mentioned Locations
Texas, Washington