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>Imagine if we have a VAT on yachts and nothing else, does that disproportionately affect the rich or the poor? Nobody? They'll buy yachts abroad.
by crdoconnor 7y ago
>Imagine if we have a VAT on yachts and nothing else, does that disproportionately affect the rich or the poor?
Nobody? They'll buy yachts abroad.
- notahacker 7y agoYup. Plus talking about 'VAT on yachts' is nonsensical in the context of funding a basic income anyway. There are a lot of economically inactive people to fund and not many yachts being purchased; wealthy dynasties tend to consume only tiny fractions of the economic rents they can extract from the economy each year. Choosing a consumption tax as a means of funding a UBI ensures that the bulk of the net contribution towards funding it will be paid by the large numbers of people who spend most of their incomes on consumption - i.e the middle classes.
- 3131s 7y agoI was only trying to illustrate that a VAT isn't inherently regressive, that example wasn't meant to be taken that seriously.
- crdoconnor 7y agoYou inadvertently did the exact opposite.
- devonkim 7y agoVAT is usually much higher in the world. 10% ish would put the US in the lower quartile. So not worth dodging the VAT and then to transport over still