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.
@birkenator @babaq @MostlyHarmless
That's not the part that matters most. (They borrow to avoid income). That lower income people spend all their income to make it through the month. Rich people spend a fraction of their income. If you can't tax them for the money they make they'll sit on more and more money.
That's not the part that matters most. (They borrow to avoid income). That lower income people spend all their income to make it through the month. Rich people spend a fraction of their income. If you can't tax them for the money they make they'll sit on more and more money.
@alper I am not proposing to have *only* VAT – I suppose that some kind of revamped wealth tax is also necessary
@birkenator @MostlyHarmless
@birkenator @MostlyHarmless
@babaq @alper @MostlyHarmless it’s a pipe dream though.
Most western systems are all about keeping the lower classes occupied and uninformed while the higher classes make the real policy.
The key word is occupied - enough income for food and the occasional new car, but not enough to do damage.
That system is hard to change. In some places politics are almost Chinese, but rich people are hand picking politicians instead of an aligned committee.
@babaq @birkenator @MostlyHarmless
We don't even need that. Just proper income tax and closing the loopholes created over decades over assets will be enough, mostly. But the problem snowballed into them beginning to want everything, including their own fiefdom. So they became rich enough to think they can act like little feudal lords that deserve their sovereign lands to rule. Historically the only cure seems to be guillotine.
We don't even need that. Just proper income tax and closing the loopholes created over decades over assets will be enough, mostly. But the problem snowballed into them beginning to want everything, including their own fiefdom. So they became rich enough to think they can act like little feudal lords that deserve their sovereign lands to rule. Historically the only cure seems to be guillotine.
Baron Vonskinnback@alper @birkenator @babaq @MostlyHarmless what about paying VAT on investments savings and pensions when the money goes in & out?
@Vonskinnback @birkenator @babaq @MostlyHarmless
VAT is a method of collecting sales tax. It's indirect. So no sales made or value added/created then you don't pay the money you didn't make.
Simple: If money is made you tax it. If not you don't.
VAT inflates the price of something to create an extra margin for the government. It says "you made a transaction, bought a good/service and sold it for a bit more. Apart from the tax you'll pay for your income I want 10% (or whatever) paid by the last person. The only difference from sales tax is everyone including the last person adds the VAT to their price. Only the final buyer cannot deduct the VAT they paid from the vat they got from the next sale since there isn't one. This is what VAT is. But if you understand or mean something different let me know.
VAT is a method of collecting sales tax. It's indirect. So no sales made or value added/created then you don't pay the money you didn't make.
Simple: If money is made you tax it. If not you don't.
VAT inflates the price of something to create an extra margin for the government. It says "you made a transaction, bought a good/service and sold it for a bit more. Apart from the tax you'll pay for your income I want 10% (or whatever) paid by the last person. The only difference from sales tax is everyone including the last person adds the VAT to their price. Only the final buyer cannot deduct the VAT they paid from the vat they got from the next sale since there isn't one. This is what VAT is. But if you understand or mean something different let me know.