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> Yes, rich people will buy more stuff subject to VAT, but a much lower proportion of their incomes, and it falls a lot as incomes go up. Doubt. Rich people us
by 9dev 1y ago
> Yes, rich people will buy more stuff subject to VAT, but a much lower proportion of their incomes, and it falls a lot as incomes go up.
Doubt. Rich people usually have holding corporations or trust funds that can buy their yacht, and employ a wide range of tax evasion techniques carried out by an army of specialist lawyers and accountants to minimise tax impact to the absolute minimum.
They play a different game than you or me, but on the same playing field.
- graemep 1y agoI think you agree with me? To clarify, rich people will spend more on the things subject to VAT than the rest of us. They will spend a lot more on entertainment, maintaining houses, cars and fuel, luxury consumables etc. However, a much higher proportion of their spending will be able to escape VAT because they can evade VAT (and income tax) to a much grater extent.
- 9dev 1y agoYes, I think so too. I guess I just didn't get the tax evasion aspect in relation to VAT.