Well in theory, you could have a progressive tax on consumption, i.e. basic subsistence item have a low VAT, while luxury goods have a higher rate. This is alre

Well in theory, you could have a progressive tax on consumption, i.e. basic subsistence item have a low VAT, while luxury goods have a higher rate. This is already in application in some countries, but this is rather crude and does not take into account what you are using the item for. For example, electricity to heat your single room apartment has the same tax rate than the one used to heat your Olympic pool when it's freezing outside.