Many EU countries have a “VAT” and like feel like this is kinda targeting poor people. Like, for the rich, this is insignificant, for poorer people, a (example) 20% tax would be a huge burden. Why do they do this?
🤔
Many EU countries have a “VAT” and like feel like this is kinda targeting poor people. Like, for the rich, this is insignificant, for poorer people, a (example) 20% tax would be a huge burden. Why do they do this?
🤔
Essential goods have a 6% taxation in my country (Portugal). This also applies to the first 200kw/h you use in your home.
Then there is a 13% for services, like restaurants. I think wine is also taxed thia way.
The higher tier is reserved for non essential items, like cookies, chocolate, fuels (which are technically being double taxed), cars, etc.
We also pay a direct contribution for our social security system (11% over your gross salary, monthly), plus a direct taxation over our overall monthly salary (the minimum wage workers are exempt from this).
The discussiom on these taxes is long, old and boring but it essentially boils down to having those who want something, pay for it.
Your whole post can be summed up as “consumption taxes are regressive but some think they are more fair”
What is the alternative? Asking honestly.
More progressive income taxes like a land value tax would be a great start.
I pay those. I have a plot of land and pay tax on it.
Any other suggestion?
You almost certainly do not unless you are incredibly wealthy and own multiple plots of land . Land Value Taxes are not the same as property tax.
That’s correct. My country does not observe it.
Most countries do not have a LVT because it would hurt the very wealthy as it is taxes on unused land not on your primary home.