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vel0citylast Tuesday at 10:05 PM1 replyview on HN

> Suppose you pay a 25% income tax and then a 10% sales tax. You're paying the same amount, almost a third of your income, as you would with a 47% sales tax.

No, I don't, because I don't spend 100% of my income every year on income-tax applicable goods. A good chunk of my income, even that which is taxed with income tax, goes to other things (like my mortgage, other investments, groceries, savings accounts, charitable donations, etc.) that either defer paying sales taxes or have no sales tax applied.

Meanwhile other purchases have extra sales taxes applied such a liquor or hospitality taxes.


Replies

AnthonyMouselast Wednesday at 7:05 AM

Obviously the hypothetical is assuming a uniform 10% sales tax, but what's your point? If you had a 20% sales tax on accommodations then incorporating a 25% income tax into it would make it a 60% sales tax. If you wanted to continue omitting the existing sales tax contribution to groceries but apply the income tax portion you could use 33% instead of 47% and so on.

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