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Remember that everyone is paying VAT, so yes little income are also taxed
by Glawen 4y ago
Remember that everyone is paying VAT, so yes little income are also taxed
- Moissanite 4y agoI feel like we need a progressive VAT, which differentiates necessities from luxuries. Probably too complex to implement though.
- ChuckNorris89 4y agoMany countries have progressive VAT. In my country food is half the VAT of consumer goods while medicine and books have zero VAT. It's definitely not that difficult to do.
- stu432 4y agoWe do already, there's several VAT values, necessities are supposed to be VAT free for instance. Has some quirks in it, so you end up with the Jaffa Cake Vs Biscuit debacle - https://www.astonshaw.co.uk/news/jaffa-cake-tax/#:~:text=The%20significance%20of%20the%20borderline,always%20remain%20exempt%20from%20VAT https://www.astonshaw.co.uk/news/jaffa-cake-tax/#:~:text=The....
- Moissanite 4y agoI was aware of the biscuit thing, but think it should just be rolled out more widely. We sort of have that with luxury cars, but an across the board increase of VAT to 30% on high-end goods is really what going for - defining luxury goods is left as an exercise for the reader.
- stu432 4y agoPretty comprehensive list here, https://www.gov.uk/guidance/rates-of-vat-on-different-goods-and-services https://www.gov.uk/guidance/rates-of-vat-on-different-goods-...
- midasuni 4y agoI pay hardly anything in vat other than a few luxuries. Food Rent Public transport No vat on those Electricity is only 5% A few quid a year on vat on toothpaste hardly makes a difference.