This prevents so-called cost "cascading" or "pyramiding," in which an minutia is taxed farther than once as it makes its way from production to final retail sale. There are diverse types of sales taxes: Seller or Vendor Taxes, Consumer Excise Taxes, Use Tax Retail Transaction Taxes, or Appraisal Added Taxes.

If all purchases are subject to the same contribution rate, the duty proportion itself is flat with institute income people paying enhanced giveaway as they consume more. While the tax on spending as a percentage of gross income may be regressive, the effective impost rates can be progressive on consumption due to exemptions or rebates. If a sales tax is to be related to income, then the unspent income can be treated as tax-deferred (spending savings at a later particle in time), at which time it is taxed. Sales taxes often exclude available resources or provide rebates in an effort to create progressive effects. In copious locations, "necessary" items such as non-prepared food, clothing, or prescription drugs are exempt from sales boondoggle to alleviate the burden on the poor.