Nick Noble
31-Oct-11, 13:51
Despite what Osborne maintained when upping VAT to 20% that it is a progressive tax, an official report by the office for national statistics has found that the poorest 20% pay a higher proportion of their income on VAT than do the richest 20%.
When will any government have the courage to levy tax in a genuinely progressive manner, on income, and stop trying to hide tax elsewhere.
http://www.bbc.co.uk/news/business-15519727
I guess that they could perhaps zero rate those "luxuries" - for example adult clothing and shoes (and clothing and shoes which has to be bought for larger children), sanitary towels, petrol and diesel - which we all have to buy, at least that would make VAT somewhat more progressive. But so long as everyone has to pay VAT on items which are not luxuries then it will remain unfair.
When will any government have the courage to levy tax in a genuinely progressive manner, on income, and stop trying to hide tax elsewhere.
http://www.bbc.co.uk/news/business-15519727
I guess that they could perhaps zero rate those "luxuries" - for example adult clothing and shoes (and clothing and shoes which has to be bought for larger children), sanitary towels, petrol and diesel - which we all have to buy, at least that would make VAT somewhat more progressive. But so long as everyone has to pay VAT on items which are not luxuries then it will remain unfair.