Not everywhere. Tax evasion is a thing, and some countries have messy laws. But for vat it does, rich people simply tend to buy more and more expensive stuff
No, consumption taxes (such as VAT) are generally considered to be regressive, because the rich spend less on consumption relative to their income.
In almost all countries, the top income decile was estimated to have paid a share of their income that is only 60% of what the bottom half pays in consumption taxes.
Boomkop3@reddthat.com 2 days ago
Fortunately they hit the rich harder than poor. Which means there’s more money for the social programs that keep those who are struggling alive
Maggoty@lemmy.world 2 days ago
They do not.
Boomkop3@reddthat.com 1 day ago
Not everywhere. Tax evasion is a thing, and some countries have messy laws. But for vat it does, rich people simply tend to buy more and more expensive stuff
Meron35@lemmy.world 1 day ago
No, consumption taxes (such as VAT) are generally considered to be regressive, because the rich spend less on consumption relative to their income.
In almost all countries, the top income decile was estimated to have paid a share of their income that is only 60% of what the bottom half pays in consumption taxes.
The inequality impact of consumption taxes: An international comparison - ScienceDirect - www.sciencedirect.com/…/S0047272723000798