The Pale King : progressive sales tax

‘Irrelevant’ Chris Fogle tells the story of Illinois’s (imaginary) 1977 experiment in a progressive sales tax, with rates of 3.5% on purchases under $5.00, 6% under $20.00, 6.8% under $42.01, and 8.5% for everything above $42.01.

$42.01? It’s a David Foster Wallace novel.

The result, Fogle says, was statewide chaos, with shoppers buying groceries one small bag a time and pumping gas in $4.99 increments. But there was worse to come.


David Foster Wallace, The Pale King (Boston: Little, Brown, 2011).

These troubled Illinois times prompted me to think of this passage. Illinois is one of a handful of states with a flat income-tax rate. The Institute on Taxation and Economic Policy calls Illinois one of the “Terrible Ten,” those states that “tax their poorest residents — those in the bottom 20 percent of the income scale — at rates up to seven times higher than the wealthy. Middle-income families in these states pay a rate up to three times higher as a share of their income as the wealthiest families.” Here’s some thinking about what a progressive income tax, or even a slightly higher flat rate, would mean for the state.

Related reading
All OCA David Foster Wallace posts (Pinboard)

[Why ‘Irrelevant’? Notice the final sentence in the passage. Wallace, by the way, used single quotation marks.]