The Tax Foundation Is Advocating for Sales Taxes

Do you think that exempting groceries from the state sales tax makes that tax more progressive? Think again. A recent study for the Tax Foundation found that exempting groceries from the sales tax results in higher rates for other goods. The study further found that low-income families would be better off if groceries were taxed, and the tax rate was reduced commensurately on other goods. So far, the Tax Foundation has not endorsed the FAIRtax, but it looks like they're slowly recognizing the economic truth that sales taxes are better than income taxes.