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> What would happen if you replace all (most) tax with VAT? The poor would pay considerably more of their income as tax than the rich. And yes, there are ways
by rmc 11y ago
> What would happen if you replace all (most) tax with VAT?
The poor would pay considerably more of their income as tax than the rich.
And yes, there are ways to do tax evasion with VAT. There was a court case in the UK about whether Jaffa Cakes were a cake or a biscuit (because there are different VAT categories)
- ahallock 11y agoThen don't charge the poor for VAT.
- kuschku 11y agoNow you create an incentive for everyone to stay just below the limit of what counts as "poor" and have their actual assets in other countries and get it as loan from themselves.
- deleted 11y ago[deleted]
- weego 11y agoDefine the poor, without creating loopholes, for a tax system.
- rmc 11y agoHow do you do that? What's the limit? Is it all or nothing, or a sliding scale? How is each and every shop suppose to know and keep track of if someone is in this category or not?