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Poorest people spend more on VAT than richest.


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Well, I can take that post just about as seriously as I can all of your others.

 

I don't smoke, but I do enjoy hunting - should ammunition be a tax-free essential for me?

 

Of course not, that would be insane.

 

You should be purchasing VAT free dog food for your whippet!

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The BBC article is misleading anyway, all the argument about regressive/progressive is irrelevant, the study concludes that the poor are better off and spending more money on items which attract VAT than they used to, the % for the rich hasn't actually changed at all.

I don't suppose even chem1st will see it as a bad thing that the poor have got richer?

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If I buy something VATable at £12, £2 of my income has been spent on VAT - if my income is £200, that is 1% - if my income is £100 it is 2% - the lower my income the higher the proportion I am spending on tax - what is there not to understand?
Short of setting up ever-grainier levels of VAT and defining ever more precisely what items attract what rate (retailers will lap the added overhead no doubt :rolleyes:), this square cannot be rounded anyway.

 

I can't imagine every retailer asking for proof of income at the till would be a practical solution but, if they ever did, I can predict a roaring trade for payslip forgers and fake ID/credentials producers :hihi:

 

Interesting that no one has yet mentioned that (stereotype alert!), item for item, richer people tend to buy more expensive (branded) items which generate higher VAT receipts. E.g. Joe Prole buys a Logik 22" LCD TV and Jim Rich buys a Panasonic 50" Plasma TV.

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Short of setting up ever-grainier levels of VAT and defining ever more precisely what items attract what rate (retailers will lap the added overhead no doubt :rolleyes:), this square cannot be rounded anyway.

 

I can't imagine every retailer asking for proof of income at the till would be a practical solution but, if they ever did, I can predict a roaring trade for payslip forgers and fake ID/credentials producers :hihi:

 

Interesting that no one has yet mentioned that (stereotype alert!) richer people tend to buy more expensive (branded) items which generate higher VAT receipts. E.g. Joe Prole buys a Logik 22" LCD TV and Jim Rich buys a Panasonic 50" Plasma TV.

 

It could always be abolished and have the balancing amount applied to income tax rates...

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