3 ms·

Aren’t consumption taxes generally regressive?

• jsty 7y ago
  If imposed at a blanket level, then yes. But zero-rating some items (e.g. food, housing) and higher-rating others (yachts, private jets, ...) can address that to a certain extent.
  • refurb 7y ago
    Or what Canada does, which is rebate over the year based on your income level and assumed consumption.
• humanrebar 7y ago
  I favor a minimum income and/or earned income tax credit to offset.
• leetcrew 7y ago
  for "regressive" and "progressive" to mean something useful, you need to take into account what the tax proceeds are used for. if a mildly regressive tax is used exclusively to fund healthcare for the poor, it's probably not regressive in the end. if a highly progressive tax is used exclusively to finance wars for the elite, it is probably not progressive in whole.
• consp 7y ago
  The are usually offset by either multiple consumption tax rates (luxury vs necessary goods like food, toilet paper, etc) or income tax deductions in the lower brackets. Either by excluding taxes at lower income or by subsidies for those groups.