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**Lt_Apple** · 06-23-2010, 12:27 AM

I guess you really did not understand my post.

The proportion is always the same. But the reason why the VAT is regressive is because the real impact of it provides benefits to the rich that the poor do not get -- the deferral of VAT payment granted by investments results in real-world supplemental income not afforded to poor people. The proportion is the same, but the overall income is higher for rich people as a direct result of the deferral of VAT payments.

If you're going to be pedantic and only look at the superficial -- yes, it is a proportional tax. 20% for everyone.
If you look at it in terms of the real world, the rich benefit more than the poor.

06-23-2010, 12:27 AM	#37
Lt_Apple Join Date Dec 2008 Posts 4,489 Senior Member	I guess you really did not understand my post. The proportion is always the same. But the reason why the VAT is regressive is because the real impact of it provides benefits to the rich that the poor do not get -- the deferral of VAT payment granted by investments results in real-world supplemental income not afforded to poor people. The proportion is the same, but the overall income is higher for rich people as a direct result of the deferral of VAT payments. If you're going to be pedantic and only look at the superficial -- yes, it is a proportional tax. 20% for everyone. If you look at it in terms of the real world, the rich benefit more than the poor.
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