Many EU countries have a “VAT” and like feel like this is kinda targeting poor people. Like, for the rich, this is insignificant, for poorer people, a (example) 20% tax would be a huge burden. Why do they do this?

🤔

  • philluminati@lemmy.ml
    link
    fedilink
    arrow-up
    2
    arrow-down
    2
    ·
    3 days ago

    In what way does VAT hurt the poor more than the rich? Considering it’s on each item you buy it clearly impacts the rich more than the poor.

    • DebatableRaccoon@lemmy.ca
      link
      fedilink
      arrow-up
      7
      ·
      edit-2
      3 days ago

      Because VAT is proportional to the item, not the person’s income. From one perspective, yes it’s a fair system but from another, the cost of living is significantly greater for a poor person than a wealthy person. Many are barely scraping by while others are out wining and dining and still getting plenty for free.