Wealthier folks consume less as a percentage of their income than poor people do. If you add a 10% sales tax on food, the poor are hit harder, as a percentage of their income.
This is such an important point that so many seem to miss. The more income you have, the higher your disposable income. A person who earns $20k per year probably spends $20k per year. A person who earns $50 million a year isn't going to spend $50 million every year. Even if their income skyrockets to $150 million, they likely aren't going to spend $50 million in a year. It's just not feasible. Therefore, any sort of FairTax or FlatTax is hitting the poor a lot more than the rich and is regressive by definition.
Its a basic fallacy of the fairtax/nonprogressive tax movements that consumption equal to income. It is true, until you have your basic needs met. Go around to your local rich neighborhood - not everyone has the latest Maserati, because their transportation needs are fully met by a cheaper vehicle. If you're well off much more of your income is going to go to investments and savings.
