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Currently uncooked food is exempt from sales taxes. This is because taxes on necessities at a flat rate is regressive to the poor because they pay a higher proportion of their income to necessities. However, this falls short for a number of reasons:
1. Other necessities like clothing and housing are not tax exempt.
2. Unnecessary expenditures like more exorbitant foods are also tax exempt.
Instead, we ought to tax those goods, but offset with a set amount to each person per month. This way there is effectively zero tax on necessities without giving a tax break on luxuries. It's a relatively minor change, yes, but this is a significant flaw in our tax system.
1. Other necessities like clothing and housing are not tax exempt.
2. Unnecessary expenditures like more exorbitant foods are also tax exempt.
Instead, we ought to tax those goods, but offset with a set amount to each person per month. This way there is effectively zero tax on necessities without giving a tax break on luxuries. It's a relatively minor change, yes, but this is a significant flaw in our tax system.