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It's a regressive tax: https://taxpolicycenter.org/briefing-book/who-would-bear-burden-vat https://taxpolicycenter.org/briefing-book/who-would-bear-bur...
by gardnr 1y ago
It's a regressive tax: https://taxpolicycenter.org/briefing-book/who-would-bear-burden-vat https://taxpolicycenter.org/briefing-book/who-would-bear-bur...
- nabla9 1y ago>Although a value-added tax (VAT) taxes goods and services at every stage of production and sale, the net economic burden is like that of a retail sales tax 1. all goods and services taxation is regressive. 2. VAT is better than alternative goods and services taxation methods. Argument for removing goods and services taxation is one thing. Argument for compensating good and services taxation to the poorest (as is common) is another. None of these are arguments against VAT itself. VAT is harder to avoid and brings more money and allows lower tax rate all things considered. In the source you provided look up the: >Why is the VAT administratively superior to a retail sales tax?
- bravesoul2 1y agoWhat if you waive it on food, school supplies, public transport &c...
- nabla9 1y agoIt's typical to have reduced VAT for food, etc. There is even better way to offset the regression of consumption taxes. Hint three letters, starts with U.
- bravesoul2 1y agoUB40
- toast0 1y agoHow does British Reggae help us?
- JimmyAustin 1y agoIt reduces the degree of regressive, but as long as lower-income people spend any money at all on nonexempt goods it will never make it neutral.