Who pays the most tax?

[vetran]

You're entirely correct (i've said the same thing here several times previously) - But I wish you'd stop saying 'more' and instead said something like 'a higher percentage'. To conflate a large percent of virtually nothing with a smaller percentage of a lot is to presuppose that people don't have any legitimate claim on their own earnings - only a percentage of them.

Supposing that I were rich - even if you think that I should pay more than poorer people, that money is still mine to give. Suggesting that I'm paying less than other men simply because I have more to pay is a very dishonest position to take. If I were rich I'd find it very insulting too.

indeed sloppy writing. the poor will pay a higher percentage of their money in indirect taxes as richer people will either spend less of their money as a percentage on traditional goods or avoid / evade more tax.

[Sysman]

So your analogy is flawed. You would be better using two people losing 10% of body weight. The thirty stone one loses 3st, the 10st one loses a stone. The fat one lost 'more' but they both lost the same percentage.

The difference is that the thirty stone one losing 3st isn't going to be health threatening, but a 1 stone loss for a ten stone person might be.

[SpontaneousOrder]

indeed sloppy writing. the poor will pay a higher percentage of their money in indirect taxes as richer people will either spend less of their money as a percentage on traditional goods or avoid / evade more tax.

VAT has to be a killer. Imagine accumulating 20% at every step of a 20 step production supply chain. The basics should be very cheap.

[vetran]

The difference is that the thirty stone one losing 3st isn't going to be health threatening, but a 1 stone loss for a ten stone person might be.

sort of the illustration I was after, its more complicated than you think. The person may be 4'8"ft so could be officially obese or 6ft and underweight.

[loylewis]

I guess after the UK 2015 elections, the scenario of tax policy will change. According to me, if the Conservative party promises to decrease the burden of tax from low income households, then there are bright chances for Conservatives to win these elections.

[meridian]

indeed sloppy writing. the poor will pay a higher percentage of their money in indirect taxes as richer people will either spend less of their money as a percentage on traditional goods or avoid / evade more tax.

Indeed. And "the poor" will also collect a higher percentage of benefits compared to their income....

[KentPhilip]

VAT has to be a killer. Imagine accumulating 20% at every step of a 20 step production supply chain. The basics should be very cheap.

If you are a business you are allowed to reclaim the VAT spent on buying things. So you don't get a compounding up of VAT. VAT is a tax on private consumption not production.

[d000hg]

"Luxury goods" includes things like petrol to get to work, which is taxed at a ridiculous rate. But it's hard to see how means tested petrol could work.

It sort of is, roughly speaking. Poor people buy small cars which use less petrol, rich people buy petrol guzzling cars which use more

[vetran]

It sort of is, roughly speaking. Poor people buy old cars which use more petrol, rich people buy new ECO cars which use less

FTFY

[d000hg]

That's only a temporary blip.