For instance, while high-income earners can save or invest a larger proportion of their income, lower-income individuals often have to spend a larger part, if not all, of their income on basic goods and services, even if food and medicine are exempt. This could mean they end up paying a higher proportion of their income in taxes compared to wealthier individuals.
A rebate of $25,000 of income could help mitigate this to some extent, it also assumes that all individuals and families have stable, predictable incomes. In reality, many people, especially those working in the gig economy or other informal sectors, have irregular incomes that can fluctuate widely from month to month.
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