Community Chat

[ValuSkr]

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@Highlands72 wrote:

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@Porcelain wrote:

Sometimes I wish they would get my sales tax wrong. I have to pay massive sales tax on everything, including food and clothing, because I live in TN.

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Tennessee has no state income tax, as far as I remember (only lived there for short period). In that case,  I would consider higher sales tax a good trade-off. 

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It's a good trade-off for people with middle-to-high incomes.  It's not good for those with low incomes.  Especially if food and clothing are among the items taxed (wow, not good!).  ... There's a reason sales tax is called "regressive" by economists and income tax is called "progressive."

[gertrudecloset]

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@Highlands72 wrote:

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@Porcelain wrote:

Sometimes I wish they would get my sales tax wrong. I have to pay massive sales tax on everything, including food and clothing, because I live in TN.

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Tennessee has no state income tax, as far as I remember (only lived there for short period). In that case,  I would consider higher sales tax a good trade-off. 

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Interesting take on it.  I would think that the higher up front sales tax on items would hurt those on a fixed income who don't have to pay income taxes on their SS and pensions.  A lot seniors have no other income (passive or otherwise) so this group would really benefit from no income tax, but not from the sales tax.