I don’t really understand some of this. Why pair it with a VAT? VAT itself is a known to be a regressive tax because poor people/ households spend a higher percentage of their incomes on consumption (food etc) so the effect of a VAT is to raise their overall tax percentage.
This is definitely what happens in my country, where we have a flat 15% VAT on all goods and services. As someone on disability that means I’m being taxed an extra 15% on most of my income.
I don’t really understand some of this. Why pair it with a VAT? VAT itself is a known to be a regressive tax because poor people/ households spend a higher percentage of their incomes on consumption (food etc) so the effect of a VAT is to raise their overall tax percentage.
This is definitely what happens in my country, where we have a flat 15% VAT on all goods and services. As someone on disability that means I’m being taxed an extra 15% on most of my income.