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That tax is reduced for important goods in most countries, like with bread
All consumption taxes are regressive.
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
They do not.
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.
The inequality impact of consumption taxes: An international comparison - ScienceDirect - https://www.sciencedirect.com/science/article/abs/pii/S0047272723000798
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.
Children's clothing too.
Someone wanna tell me one of those countries with reduced VAT for children's clothing or bread?
We get reduced VAT on hotel stays and medicine only. Bread, children's clothing (or more importantly if you need to use it, milk formula, which is going to cost you more) are all full VAT. Estonian here.
In the UK we don't pay any vat on "essential" goods. And we have a raft of tax relief for lower earners.
Not that it helps much, but it's better than a poke in the eye.
Idk why but this comment made me want to watch something with witty British humor and endearing characters
Can recommend Ludwig for this purpose.
I really enjoyed it, although I do wish it wasn't so "draw the rest of the owl".
How's income taxation?
Here in Estonia we have 22% income tax if you earn enough, but also there's a 33% tax on the employer's side + some tiny ones on both sides. 22% sounds completely fine except your pre-tax income is NOT what your employer pays for you, they pay a significant extra. Which is still coming out of your salary in the end, because your employer has to offer you a lower pretax income lol
We get a tax free allowance of Β£12,570 annually, and then it's banded from there: Income from Β£12571 to Β£14876 is taxed at 19% Income from Β£14877 to Β£26562 is taxed at 20% From Β£26523 to Β£43662 is taxed at 21% From Β£43663 to Β£75000 it's 42% Β£75001 to Β£125140 it's 45% And anything north of that is 48%
This is calculated on income after any deductions from pay are made, like national insurance contributions, pension scheme payment, salary sacrifice schemes, student loan repayments and so on.
The Netherlands, Germany, France, Belgium, Poland. I knew some, others I just Kagi'd
Ah fair enough, not sure the reduced VAT for bread of children's clothing is going to matter much compared to the insane 1000+ euro kindergarten fees per kid monthly (in the Netherlands). Some of the rest might be nice places to live though.
I don't know where in the Netherlands you are, but kindergarten is free. I happen to live in the Netherlands. You're going to get costs such as pens and paper for your kid. But there's no fees.
I'm not, but I looked into the CoL as it's the highest paying country in the EU for software engineers. Maybe it was just the it private ones that are paid and I was looking at those implicitly because I was looking at international ones where it wouldn't be expected for kids to speak Dutch at home already
Youre always allowed to pay. But they're not allowed to require it