Ideally, a sales bite is fair, born loser a formidable compliance rate, is difficult to avoid, is charged exactly once on any different item, and is simple to calculate and simple to collect. A conventional or retail sales tax attempts to achieve this by charging the cost only on the final boundary user, unlike a gross receipts boondoggle levied on the average business who purchases materials for production or ordinary operating expenses prior to delivering a service or product to the marketplace.
Sales taxes are treated to be regressive tax; that is, low income people tend to spend a greater percentage of their income in taxable sales (using a cross section time-frame) than over income people. However, this calculation is derived when the expense paid is divided Sales and Use Tax not by the tax ignoble (the amount spent) but by income, which is argued to create an arbitrary relationship.