Comment by pessimizer
4 years ago
Taxes are only paid to the extent that you're making money. Cost of living hits you equally no matter how much you make. If you're making money, when it rises, you consider whether you'd rather be living in a different place for that price. If you're not making money, you leave (or the bailiffs drag you out.)
COL[1] doesn't really hit anyone directly. It's an abstraction based on some fictional "standard of living" and its costs in an area.
That said, common knowledge is that it's cheaper to be rich than poor.
[1] https://en.wikipedia.org/wiki/Cost_of_living
Does it not depend on how progressive / regressive the tax system is, and how much money the government is spending on things that do not benefit you?