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

<- View Parent
Meron35@lemmy.world ⁨2⁩ ⁨days⁩ 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
Sort:hotnewtop