The Hidden Disparity in Rising Gas Prices #gasprices #gaspriceincrease #fuelpricehike #economy

Gas prices might be rising for everyone, but how they impact you depends a lot on how much money you make. Workingclass families spend a bigger chunk of their income on gas. So when prices at the pump go up, their monthly expenses go up by a higher percentage than wealthy families. Furthermore, higher income employees are more likely to work from home and own a fuelefficient or electric car, which can further minimize the effect on their budgets. This is why some economists say that higher gas prices are like a hidden regressive tax. It basically means that the less you make, the more it hurts. And it doesn't end with gas. Many of the most essential expenses of daily life, housing, food, energy, eat up a larger share of your income the less money you make. Which is why general inflation does more damage proportionally to the budgets of lowincome workers. Sales tax is also considered regressive for similar reasons. Every dollar you spend at the grocery store, for example, is essentially taxed twice. Once when you earn it and once when you spend it. Since poor people have to spend so much more of their paycheck on goods, their income is getting taxed more heavily than someone who can afford to build up a savings. That's why most income tax systems are designed to be progressive, not as a punishment for people who are doing well, but to balance out the inherent inequities of our economy.