MostlyHarmless
Martin Bodlák 💙💛@MostlyHarmless at some moment, there was a (rather theoretical) discussion about completely replacing income tax with only VAT… I wonder if it would work IRL
Display Name@babaq @MostlyHarmless
That's taxing expenditure instead of income. Rich people don't even spend money. They borrow. So they keep accumulating stock. They spend so little of their income compared to low income people spending almost all. That's every rich asshole's dream.
That's taxing expenditure instead of income. Rich people don't even spend money. They borrow. So they keep accumulating stock. They spend so little of their income compared to low income people spending almost all. That's every rich asshole's dream.
Birk@alper @babaq @MostlyHarmless you still pay VAT on what you pay with loaned money righr? I believe using loans is mostly to get around income tax.
catch@birkenator @alper @babaq @MostlyHarmless you also pay VAT even when you have zero income at all. Whereas income tax you usually have a personal allowance where you only start paying tax once you go above it.
@catch56 @alper @babaq @MostlyHarmless so in essence it’s easy to get around income tax and harder to get around VAT.
@birkenator @alper @babaq @MostlyHarmless no that's not the point.
If you earn $20k per year you might pay very little income tax right now. But you have to spend everything you earn on housingl/food/bills etc. if there is VAT on all of that then you pay VAT on everything.
If you earn $500k/year you don't need to spend all of that on housing/food/bills and can save it instead. You would pay zero VAT on the saved money.