Internal Revenue Service United States Department of the Treasury


All people, no matter how much money they earn, pay the same percentage of sales tax. Such a tax is called a regressive tax because the people with smaller incomes pay a larger percentage of their money into the sales tax system than people with higher incomes. However, since all of us use state services, such as state highways, state public schools, and state medical institutions, all should pay a tax for using these services.


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