Making VAT (& other taxes) Progressive
Australian Warlord
Some people are calling VAT a evil regressive tax. VAT isn't the evil thing here nor should it be completely blanketly removed. Plus it can be progressive if you know how to actually use the tax correctly. It's pretty basic to use & it's concerning that people don't seem to have that knowledge.
To make VAT progressive, you must understand basic purchasing patterns. A new player will essentially spend on one single item, food. Therefore, if you don't VAT food yet other items are VATed (yeah probably not a real word) then you'd automatically have VAT being a progressive tax system.
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In the same spirit, you further assist to make a eRepublik tax system progressive by looking at the other area that seperates new players from long term players. Players that's been playing long term essentially have eBusinesses. A low level tax on eBusiness profit withdraws can assist in making eRepublik taxes progressive.
These measures combined (if done correctly) can provide the progressive tax system that many want without establishing a significant black market.
Comments
Good article and idea,
Well done.
im stupid but i think i got the idea, is this a tax that changes with supply and demand?
that would be very good.
VAT is essentially a simplified GST style tax. It's essentially a tax in each sale. You can levy this on more "luxury" items making the tax more progressive.
good article, VAT is generally aimed at higher end goods, GST is more uniform, ie on everything, so is generally perceived as hitting lower income earners harder
sweet thanks for the information.
voted
VAT can be levied how the government decides to levy it. If it's levied across the board then it's clearly regressive. If it's used selectively then it can have progressive qualities.
Nice explaination for the peeps AW, and mabye the idea will be taken up by those who can impliment it. *fingers crossed* Thrown a vote to get it up where those-on-high can see it hehe.
Voted. Thanks for the information.