How a VAT could tax the rich and pay for universal basic income

[OnDoutside]

28. I don't know where Brookings are coming from in saying that VAT is a "progressive" tax. The rich

pay exactly the same VAT as poor people, but as a percentage of income, it's a drop in the ocean, compared to poor people, where it places an increased economic strain on lower-income taxpayers and also adds bureaucratic burdens for businesses.

Value-added taxation is based on taxpayers’ consumption rather than their income. In contrast to a progressive income tax, which levies greater taxes on higher-level earners, VAT applies equally to every purchase.

Here in Ireland, we have

Value Added Tax (VAT) is a tax charged on the sale of most goods and services in Ireland

VAT is charged at different rates for various goods and services. These are the current VAT rates in Ireland that are in place for 2020 .

(The only change from 2019 is that VAT of 13.5% is now charged on food supplements)

23% is the standard rate of VAT.
All goods and services that do not fall into the reduced rate categories are charged at this rate. See below for reduced VAT rates.

13.5% : This lower rate of VAT is charged on items including
fuel (coal, heating oil, gas), electricity, (It is 5% in the UK)
vet fees,
building and building services,
agricultural contracting services,
short-term car hire,
cleaning and maintenance services.
Catering and restaurant supplies, including vending machines and take-away food (excluding alcohol and soft drinks sold as part of the meal)
Food Supplements
Hotel lettings, including guesthouses, caravan parks, camping sites etc
Cinemas, theatres, certain musical performances, museums, art gallery exhibitions
Fairgrounds or amusement park services
Hairdressing services.
9% is a special reduced rate of VAT for
newspapers
Facilities for taking part in sporting activities including green fees charged for golf and subscriptions charged by non-member-owned golf clubs.
electronically supplied publications
More here on the 9% VAT Rate

4.8% is a rate of VAT specifically for agriculture.
It applies to livestock (excluding chickens), greyhounds and the hire of horses.

0% (Zero) VAT
Most food including Tea, coffee, milk, bread, butter, cheese , milk , vegetables, meat, etc. (Not when supplied from a vending machine or in the course of catering and NOTt food supplements such as slimming or sports supplements and protien supplements)

Books, children’s clothes and children’s shoes,
Oral medicine for humans and animals,
Vegetable seeds and fruit trees, fertilisers, large animal feed,
Disability aids such as wheelchairs, crutches and hearing aids.
All exports,

VAT Exempt :
There is no VAT on financial, medical or educational services.
You should also not pay VAT for live theatrical and musical performances (except those where food or drink is served during all or part of the performance)

In Ireland – you can buy goods from outside the EU up to a value of €22 without incurring any VAT charges

VAT rates in the UK
In the UK – the standard VAT rate is 20%
There is a 5% VAT rate on home energy , children’s car seats
Zero VAT on most food and children’s clothes.

http://www.moneyguideireland.com/vat-rates-in-ireland-to-increase.html