The Poor

The poor in this scenario will likely pay very little in taxes. Think of where your first $1000 goes to. If budgeting correctly, you are likely paying for your food, clothing and shelter expenses first. In many cases, this consumes that first $1000. Essential food is not taxed. Doing laundry or buying new essential clothes is not taxed. And paying rent, or utilities is not taxed. Therefore, a poor person is likely to not pay sales taxes on most months.Obviously if that person isn’t setting their priorities to the essentials first, then they might pay taxes, but this will be more of a choice rather than something that must be done.