Many EU countries have a “VAT” and like feel like this is kinda targeting poor people. Like, for the rich, this is insignificant, for poorer people, a (example) 20% tax would be a huge burden. Why do they do this?

🤔

  • MothmanDelorian@lemmy.world
    2·
    10 days ago

    And this is why the 1983 tax cut in the US increased revenue as at the reduced rates more wealthy people paid rather than avoided taxes.

    • Lauchs@lemmy.world
      3·
      10 days ago

      Oh interesting, I wasn’t aware there were actually examples of the Laffer curve working in reality! I alwats thought it was just a theoretical that conservatives had latched onto…

      • MothmanDelorian@lemmy.world
        3·
        10 days ago

        It is the only incident of Laffer being proven correct as far as I know. It is the 2nd to last time spending was cut along side taxes.

            • Lauchs@lemmy.world
              2·
              9 days ago

              Honestly, I’m just not sure deficit spending outside of wars/economic emergencies was a great strategy and instead, a time bomb Reaganomics left everyone else to deal with. I think that’s the ridiculously outsized part of spending that would’ve been the best to cut. If I remember correctly, servicing the debt is now on par with American military spending…