Originally posted by Scaroth of the Jagaroth
Yes VAT is regressive with respect to income but not consumption. But because the poor generally consume less, use State services more and what they do consume is generally exempt anyway e.g. food they should be better off.
It's really about the transfer of money, choice and resposibility from government to the indiviual. The incentive to earn is still there - you keep it all. This gives people security and the choice to save, invest or spend.
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