alt Hacker NewsObviously 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.
My point is some people spend all their money on sales tax applicable things while others don't spend all their income. So those who don't spend all their money get to avoid those taxes on some percentage of their invome, potentially indefinitely.
Think for a second. What kind of household spends every penny they make? Which one maybe manages to toss some money into savings every month? Which one doesn't even come close to spending their income?
Which household here pays the highest effective tax rate?