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A sales tax is a consumption or usage tax. It is also considered a regressive tax. As people earn a greater amount of money, they use less of their money on items from stores. Thus, a poor man eats a hamburger while his wife wears a Wal-Mart dress. The rich man eats steak and his wife wears a dress from Macys. The rich man has more money left over and does not spend it on something that has sales tax.

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15y ago

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