They might spend 100% of their income, which means they would pay a sales tax on all of that money. A wealthy person will spend more in terms of dollars on a sales tax, but will also not spend 100% of his or her income. Some of that income will be saved, meaning that not all of the wealthy person's income will be subject to this tax.
For poor people a higher portion of income will be taxed, and there is also less margin for tax increase in their budgets. A wealthy person can afford to pay a little more tax and still have a roof over his or her head, and food on the table. At lower income levels, even a moderate sales tax like 5% is going to put those things at risk. Thus, a sales tax is a particularly regressive plan.
The income tax system is also regressive to some extent, however. Employment income is taxed at a higher rate than investment income. For lower income people, all of their income is in the form of employment income, whereas for higher-income people a large portion of income come from investments, which are often taxed at a lower rate, if it comes in the form of capital gains.
However, it is telling to see where the support for a sales tax as a replacement to the income tax comes from -- mainly from the far right of the political spectrum. Support for tax proposals often reflect...
According to Fickes, GASB 34 changes traditional government accounting to give the readers of government financial reports a more accurate reading of everything (2002). Private accounting firms do not follow these standards because they are not responsible for being accountable to the taxpayers. Budgeting and Financial Reporting in the Government The government cannot just act as it wishes when it comes to budgeting and financial reporting. For this reason, there is
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public budgeting comparisons of the federal, state and local budget distributions. This thesis will be focused on whether or not the increased budget allocations for transportation in the federal, state and local government will enhance travel security, efficiency, performance measures and R&D development in the domain. The thesis will start off with a proposal for an agency that works across and is allocated budget in all the federal, state
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