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That's why basic, necessary goods are not taxed, only luxury items. We have a GST in Australia and poor people effectively do not pay any tax on purchases.


The definition of basic, necessary goods is extremely narrow in the US. Poor people still pay plenty of sales tax.


Unfortunately that's not the case everywhere. I live in a state in the US where even groceries have sales tax.


Most sales tax proposals I've seen will exempt food and other "necessities" for exactly this reason. With how complex income taxes are, I'd love to get a serious discussion going about a sales ax replacing it.


Or a wealth tax.




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