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Economics - Financial Markets
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HELP!!! "The sales tax on a $20.00 hammer is 17%, or $1.40, why is this tax a bigger burden for josh, who has a $15,000 income, than for Aaron, who has a $150,000 income?
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because the $1.4 represents a much larger portion of Josh's income than Aarons. The more money you have the less having to spend $1.4 matters to you. Think about how important $1.4 to a homeless person then compare that to how important $1.4 would be to Bill Gates. You can see the difference that way pretty clearly!
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