- Capitalism and Alternatives -

regressive in proportion, not in value ofcourse

Posted by: Gee ( si ) on August 20, 1999 at 13:00:07:

In Reply to: Vat do you Vant? posted by Red Deathy on August 20, 1999 at 10:59:35:

: 1:Conservative elements like sales taxes because they tzx as you spend, not as you earn (they claim), and encourage saving. Also, by conventional logic they are regressive, since the poor must spend proprtionately more of their income on taxable goods.

regressive in proportion, not in value ofcourse

: 2:VAT, GST, etc. does not break the Law of Value- when VAT here goes up, prices continue to be held down by competition- effectively VAT, GST, etc. comes out of the pockets of the Distributers (shops, etc.)

Its a margin (17.5% in the UK, usually less than 10% in US) that often isnt there o squeeze - and prices go up reducing the 'basket' of goods a family can buy and slowing the investment cycle as a result. Its also rarely a tax accross the board, there are exceptions and special rates - such as the aforementioned fuel taxes (a feeble attempt by the UK govt to make private transport as expensive as 'public' transport and therebye claim they are equal - I imagine fools will fall for it even as the scam is explained to them.)

: 3:VAT rests at 17.5 here, it began at 5%, but went up drastically, but it didn't seem to effect inflation...

It just eats up the basket of goods. Much of your criticism about families needing two wages can be sourced to sales tax as well as various other regulatory induced cost increases. Will VAT ever go down in the UK? I doubt it will by the same amount it went up.

: 4:Pertol, Beer, tobacco, etc. are all subject to a de facto government monopoly, which alows them to raise the price in the form of duty, and that is about all the taxes the working class pay.

They pay plenty on their white goods, TVs, Sofas, Carpets, Flights to Spain, satellite TV contracts and other things typically associated with the term 'working class'

Much better if they werent subject to govt monopoly then.

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