Comment on Isn't EU's "VAT" a regressive tax? Why do they have that, instead of something like, taxing the rich?

• urandom@lemmy.world ⁨2⁩ ⁨days⁩ ago

  How so? A poor person would buy less things, thus pay less VAT, than a rich person buying more things

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  • MothmanDelorian@lemmy.world ⁨2⁩ ⁨days⁩ ago

    They pay a larger percentage of their income in taxes

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    • Taewyth@jlai.lu ⁨2⁩ ⁨days⁩ ago

      Depends on what is being paid, the VAT model being used, the country etc.

      For instance in France the base tva is 20%, but food and hygiene products have a special status which reduces it to 5.5%

      I forgot the exact details buI if I recall correctly in Germany they have two models A and B depending on the product, forgot the percentage though. And then if you’re buying something for work the percentage can change again.

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      • MothmanDelorian@lemmy.world ⁨2⁩ ⁨days⁩ ago

        Regardless how you frame a VAT it will always be regressive. That doesn’t mean they are bad. It just means it shouldnt be the primary source of revenue.

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