alt Hacker NewsMy 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?
Which still doesn't have anything to do with whether it's income or sales tax. If someone has some money they're not intending to spend anytime soon then they put it into a 401k to defer the taxes, or any of a dozen other things that have a similar result.