The Mudcat Café TM
Thread #161908 Message #3851625
Posted By: Nigel Parsons
21-Apr-17 - 09:26 AM
Thread Name: BS: UK General Election
Subject: RE: BS: UK General Election
But those who have more disposable income will, presumably, spend more. It's no use looking at a figure the VAT on the goods they buy (being identical to those bought by someone on a totally different income) as a percentage of their disposable income. As a percentage that figure is meaningless.
For goods which are liable to VAT, they can choose how much of their disposable income they spend, and for everyone buying standard rated goods at the standard rated VAT they are paying 20%.
Those with a higher disposable income will probably spend more than those with a lower disposable income, and that spend is more likely to be on goods which have VAT levied on them (basically 'luxuries'). The poor are more likely to direct their spending toward 'necessities'.
In the circumstances you quote, the percentages you choose are meaningless.