Posted: Mar 16, 2012 5:13 pm
by mattthomas
Blip wrote:I confess that I know little of economics so would be (sincerely) interested to learn how an increase in VAT is progressive taxation.

Some call it progressive because EVERYONE has to buy "stuff" and "stuff" attracts VAT so EVERYONE pays VAT.

In practice though someone earning £10-20K is going to spend nearly all of their money on "stuff" that attracts VAT, whereas someone earning £100k+ is going to spend a small amount of their money on "stuff" that attracts VAT and save the rest for fattening themselves up financially.