AndyA wrote:Consumption taxes are the most regressive form of taxation, the more of your net income you spend on consumption the higher your effective tax rate. It's most notable impact will be to make the poor even poorer.
Not a problem if you provide a tax credit to low income people. Ontario, Canada single residents can get up to a $265 HST tax credit per year (paid quarterly) and up to a $281 sales tax credit from the provincial government. Considering that some of the essential living costs such as rent and food are not subject to sales tax, the tax credits should more than compensate for any sales tax a low income person has actually paid.