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France charges 5.5% VAT on food. Why not cut a bit from their welfare budget and reduce this to 0%?
by ArkanExplorer 5y ago
France charges 5.5% VAT on food. Why not cut a bit from their welfare budget and reduce this to 0%?
- input_sh 5y ago5.5% is already quite low. It's usually around 20%.
- pafje 5y agoAnd that change in 2009 (Sarkozy) has been very controversial from the start, as the restaurant owners were supposed to use the tax break to boost employment but that did not happen (surprise!). https://www.connexionfrance.com/French-news/Restaurants-should-pay-higher-VAT https://www.connexionfrance.com/French-news/Restaurants-shou...
- bondant 5y agoDropping VAT will not necessary reduce food prices. In 2009 the government reduced the restaurants VAT from 19.5% to 5.5%. Studies found that 30 months later prices had only dropped by 1.9%. https://www.ipp.eu/wp-content/uploads/2018/05/n32-notesIPP-mai2018.pdf https://www.ipp.eu/wp-content/uploads/2018/05/n32-notesIPP-m...
- kube-system 5y agoHmm, this makes me wonder how a US-style sales tax might have compared in the same situation.
- jacknews 5y agoBecause there's no way the private enterprises will simply keep prices the same and pocket the difference.