Sales Tax Rate Increase

Opinion

The new Ohio sales tax rates kicks in on the first of September. The Labor Day weekend is an ironic time to add a tax rate increase on the working class.

Sales tax is considered a regressive tax because, generally, the tax rate decreases as income increases.

As an example: Household (a) has an income of $50,000 and spends $40,000 on taxable goods and services. Household (a) sales tax rate is 4.6% of income.

Household (b) has an income of $250,000 and spends $100,000 on taxable goods and services. Household (b) sales tax rate is 2.3% of income.

If household (b) were very thrifty and only spent $40,000 on goods and services the sales tax rate would be less than 1% of income.

Paul Hunter 

paulhunter45177@gmail.com