A:08 Definition Argument- Phillyfan321

“Regressive Tax”

In my own words, I describe a regressive tax as a tax that affects and taxes the poor more than it does to wealthier citizens. This tax can be either income, sales, or property. A regressive tax can be a tax on food, clothing, or even prescription medication.

So if the government imposes a tax on certain sales, it may sound regressive. But if the tax is only on luxury items then it is not regressive. If the sales tax does not tax  basic items that people need, the cost of essential items will not go up. People who have low incomes will not be affected by the tax of they only buy essential items (groceries, clothing, and prescription  medication).  These items listed in the previous sentence are exempt from the New Jersey 7% sales tax. This sales tax will go down to 6.875% on January 1, 2017.

The sales tax only applies to to luxury items. This includes, but is not limited to: prepared meals, tobacco, alcohol, and candy.  If someone chooses to pay a tax then it is not regressive, it is voluntary. A tax only on luxury items is not a regressive tax because it does not place more of a burden on the people who can least afford to pay the tax. I think that New Jersey should not lower its sales tax at all. It should be left at 7%. This is a fair tax because it does not place a tax burden on the people with low income. I would not define the sales tax in New Jersey as regressive.

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