The Mudcat Café TM
Thread #161908   Message #3851663
Posted By: Nigel Parsons
21-Apr-17 - 11:07 AM
Thread Name: BS: UK General Election
Subject: RE: BS: UK General Election
Second thought while I was typing - No need to refactor anything but I will rephrase. If someone with 10 has to buy an item for 1.20 and 20p of that is VAT then they have used 2% of their money on VAT. If someone with 100 buys the same item they have only used 0.2% of theirs. The poorer person has paid 2% in tax while the richer one has only paid 0.2%. It would be much fairer to remove this inequality This is NOT a tax inequality. The percentage relates to the cost of the item bought and is 20% of the net price.
The person with the higher income can buy many more of these items than the person on the lower income, but the total number bought will be in relation to their available funds. No matter how many of these items are bought the tax rate (VAT) on them is still going to be 20%.