It is a good point. It depends on how regressive is defined. There are many competing arguments here, but two I am aware of are
1. Regressive deals with % of income spent.
2. Regressive deals with an ideal state where those with more excess income contribute more than those with less.
In both of these, I suppose sales tax is regressive if it applies to all items, but only 2 is regressive with sophisticated rebates and untaxed categories.
1. Regressive deals with % of income spent.
2. Regressive deals with an ideal state where those with more excess income contribute more than those with less.
In both of these, I suppose sales tax is regressive if it applies to all items, but only 2 is regressive with sophisticated rebates and untaxed categories.