In response to:

Taxing the Poor

Zerubbabel Wrote: Dec 12, 2012 11:25 AM
A sales tax equal to the income tax would be huge. It would dwarf the Canadian sales tax of up to 17%. While theoretically fair, this would be a deterrent to consumption and hence our economy. The one good thing it would do is to boost alternative (black) markets.

With all the talk about taxing the rich, we hear very little talk about taxing the poor. Yet the marginal tax rate on someone living in poverty can sometimes be higher than the marginal tax rate on millionaires.

While it is true that nearly half the households in the country pay no income tax at all, the apparently simple word "tax" has many complications that can be a challenge for even professional economists to untangle.

If you define a tax as only those things that the government chooses to call a tax, you get a radically different picture from...