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

• Maggoty@lemmy.world ⁨1⁩ ⁨day⁩ ago

  They do not.

  source

  • 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

    source

    • 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

      source

      • Boomkop3@reddthat.com ⁨1⁩ ⁨day⁩ ago

        More taxes paid are still more taxes paid. Regardless of whether that’s a large or small portion of someone’s income.

        More tax revenue is more money for social services.

        I know it’s not all perfectly fair, but it’s not all bad.

        source