Basic example to help you understand since it can be a little abstract: I make $1000 a week and buy a TV with $10 in sales tax. That comes out to 1% of my income on taxes. You make $2000 a week and buy the same TV. In your case you only pay .5% of your income for taxes on the same item.
Basic example to help you understand since it can be a little abstract: I make $1000 a week and buy a TV with $10 in sales tax. That comes out to 1% of my income on taxes. You make $2000 a week and buy the same TV. In your case you only pay .5% of your income for taxes on the same item.