Sales taxes function as regressive taxes.
Sales and consumption taxes are widely recognized in economic literature as functioning regressively, taking a larger proportion of income from lower-income households than from higher-income earners.
The retrieved papers consistently support the claim that sales and consumption taxes (such as excise taxes, carbon taxes, and general consumption levies) are regressive because they consume a larger share of income from lower-income households. None of the provided papers refute this well-established economic principle.
Paraje GR, Jha P, Savedoff W, Fuchs A. Taxation of tobacco, alcohol, and sugar-sweetened beverages: reviewing the evidence and dispelling the myths.. 2023. https://doi.org/10.1136/bmjgh-2023-011866
The article notes that excise taxes like those on tobacco, alcohol, and sugar-sweetened beverages are commonly opposed due to their regressivity, as they take a larger percentage of income from low-income earners.
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John Creedy. Are Consumption Taxes Regressive?. 1998. https://doi.org/10.1111/1467-8462.00057
The paper discusses the long-standing argument that a general consumption tax is typically regressive because lower-income households save less and spend a higher proportion of their income.
O'Brien RL. Redistribution and the New Fiscal Sociology: Race and the Progressivity of State and Local Taxes.. 2017. https://doi.org/10.1086/690118
The study highlights that state tax systems, including various consumption and general tax structures, often function as regressive mechanisms that disproportionately burden vulnerable populations.
Mengesha I, Roy D, Roy D. Carbon pricing drives critical transition to green growth.. 2025. https://doi.org/10.1038/s41467-025-56540-3
The research points out the inherently regressive nature of carbon pricing and consumption-based environmental taxes, which can disproportionately affect lower-income populations.
Syahrituah Siregar. Estimation of the Effect of Carbon Tax Implementation on Household Income Distribution in Indonesia: Quantitative Analysis with Miyazawa Input- Output Approach. 2025
The empirical analysis of a carbon tax implementation in Indonesia demonstrates that such taxes have a regressive impact, with low-income households bearing a proportionally greater economic burden.
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