There’s a lot of argument over VAT and whether it’s regressive or progressive – the Con-Dems would like you believe it’s progressive but it isn’t.
Talking the governments report The effects of taxes and benefits on household income, 2007/08 it shows:
If you look at table 14 (appendix 1), which shows the income, taxes and benefit for all household decile groups. The figures are for 2007-08.
You can see that the bottom decile have an average gross income of £8820, and pay out £1240 in VAT – that is one pound in seven.
You can see that the top decile have an average gross income of £92936, and pay out £3688 in VAT – that is one pound in every twenty-five. Next Left.
Now like every such statistical report there’s a margin for error but it have to be a pretty fucking big error to turn VAT into a progressive tax. The Con-Dems are taxing the poor to pay for the mistakes of the rich.
“The Con-Dems are taxing the poor to pay for the mistakes of the rich.”
Indeed, any tax that hits the poor harder than the wealthy is a tax worth it’s weight in gold to the Tories. They can show the IMF and international finance that everything’s under control.