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Some financial experts today think we should get rid of income tax and replace this tax with a national sales tax.

Would this be a fair alternative to the current system?
Make sure you explain whether you think this would be a fair alternative or not and why or why not.

User PrinceZee
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1 Answer

7 votes

Answer:

The problem with replaced income taxes with sales taxes is that sales taxes can be more regressive, this means that low-income people could end up paying more in tax in the form of a national sale tax than they do in the form of income taxes.

This is because low-income people spend a higher percentage of their income on consumer goods than high-income people, and would end up paying a larger share of their income in the form of sales tax.

User Geeks On Hugs
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