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The left often argue that VAT is a regressive tax, with "poor" (by which they mean low income, not low wealth) people paying more as a percentage of their incom
by isostatic 8y ago
The left often argue that VAT is a regressive tax, with "poor" (by which they mean low income, not low wealth) people paying more as a percentage of their income than "rich" people.
I'm not entirely sure why, given the number of basic items that don't attract vat (rent, train fares, food).
Buy a new car though and you're paying tons.
- CiaranMcNulty 8y agoBecause the % of income spent on goods decreases as earnings increate. Many high-earners aren't 'spending' their money, they're investing it to make more money Whereas low-earners are spending their pay cheque before the next one arrives.