The example shown here may not be realistic, as the numbers were chosen to demonstrate more easily the differential impact of sales taxes. We wouldn't expect a person who makes $10,000 to buy a $2000 television set. But, such a person probably does buy $2000 worth of taxable essential items over the course of the year.
People who prefer the sales tax as the basis for funding the state government are often quick to argue that such taxes are not regressive: the rich buy more things and they own more expensive houses, cars, boats, etc. Consequently, they end up paying much more in both sales and property taxes.
This is certainly true. Nevertheless, the wealthy get to enjoy all of those goods while paying the same tax rates as those who are much less wealthy. It is by this criterion that such flat rate taxes are by definition regressive.
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