The Mudcat Café TM
Thread #161908 Message #3851576
Posted By: Raggytash
21-Apr-17 - 05:36 AM
Thread Name: BS: UK General Election
Subject: RE: BS: UK General Election
Nigel, If a company employs people they are paid a wage, out of those wages they pay tax. Their wages are paid from the cost of the goods they produce. The consumer buys those commodities and thus pays a share of the tax that the employee pays.
If the company makes a profit they would pay tax (one hopes). Those profits come from the cost of the goods they sell, thus the consumer by purchasing those goods almost pays a share of those taxes too.
The same applies to the distributor and the shopkeeper. Although there is no DIRECT taxation on some goods there is an indirect taxation of almost everything that is bought.
Those on the least income can thus pay proportionally more of their income in tax.
That element of tax is the same no matter what the income of an individual is, rich or poor.