- Capitalism and Alternatives -

Proprtion is what counts...

Posted by: Red Deathy ( Socialist Party, Uk ) on August 20, 1999 at 15:36:54:

In Reply to: regressive in proportion, not in value ofcourse posted by Gee on August 20, 1999 at 13:00:07:

: regressive in proportion, not in value ofcourse

Of course, but proprtion is what actually matters- since richer people are paying proprtionately less tax- effectively 9by the old standard) working less for the state...

: 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.

No, prices don't go up, because they have to stay at market value- VAT is a proprtionate tax- i.e. its paid as a percentage, hence what tend to happen is that the +VAT price is the real price.

: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.)

Childrens clothes, boooks, etc. VAT on fue is a Euro policy, supposedly envrionmental, but its been resisted because of the threat of Old people having to pay it, etc.

: 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.

My point was the basket of goods did not increase significantly, and if it did, then wages increased to cover the difference- in the end its only Capital thats paying the taxes. The need for two wages comes from a general increase in teh number of unemployed, thus holding wages down further.

: 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'

There's no duty on TV's? If you look at that economic modelling site, you'll see that Beer and Wine & Spirits are taxed by adding a spoecific amount to their price- the duty, that is a real tax, VAT doesn't increase the price.

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