Yes, you're correct: Poorer people spend most of not all of their available on income on everyday goods like groceries, clothes, etc...
Richer people spend (relatively speaking!) less of their available income on these items and save me
this post was submitted on 28 Jan 2025
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It's a vat. Like a vat of oil. They deep fry the money, and then recirculate the crispy delicious money into the ecconomy. That's what thfy mean by eat the rich. Deep fry their money, and eat their faces.
.......what? Whys everyone looking at me like that?
Username checks out.
:P
It's just a different implementation of sales tax. Non-European countries in the Global North also have it, including the big one I shall not name, just sometimes under a different form and thus different name.
Here in the Uk we have tax for services (council tax), tax for health care (national insurance), tax for all your income (income tax) and almost everything you buy includes a small tax called VAT (value added tax) which is about 20%. There’s also a few taxes on cigs, alcohol and petrol.
VAT not on food, books but it on basically everything else. The more things you buy, the more tax you’ve paid. You more yoy spend on items the more you pay.
I don’t know why people are calling it a tax on the poor. It’s obviously a tax on the biggest consumers.
It’s obviously a tax on the biggest consumers.
Yes and no.
You're absolutely correct in terms of total dollars contributed.
But the flip side is in terms of percentage of income. The wealthier you are, the more likely you are to have stocks, property and the like, which are usually exempt. So, as a total percentage of income, a VAT tends to hit the poor harder. (That being said, other taxes like capital gains are more progressive etc to make up the difference.)
Stocks and property are taxed in the UK, just not with VAT: we have capital gains tax, dividend tax, and stamp duty.
Oh absolutely, it's just the VAT itself is regressive, not the overall tax system.
The rich don't have to pay taxes. The taxes they pay are largely voluntary.
That is the way of the world. It's a truism. That's what happens. You cannot change it.
Bonus extra: the trickle-down theory almost entirely doesn't exist either. BUT the second generation - the grandchildren - after the original rich person will usually piss almost all of the fortune away.
Second bonus extra: the same thing happened with serious socialism; the leaders become dictators.
Anarchy for the win. 😁