Hello!
Today I'll make a brief comment on that area of \u200b\u200bknowledge that meet the law, politics and economy and that we love to everyone: taxes! I've never been a fan of financial and tax law, but want something that you have left after 3 months on the subject matter. And this whole tax issue is highly topical, as it was presented today in Parliament the draft State Budget for 2010 which includes, among other measures a rise of value added tax (VAT) from 16 to 18%. I focus on this specific point and why I think is wrong as a strategy to overcome the crisis.
There are basically two guiding principles of taxation: equity and progressivity (31.1 EC). These two principles are somewhat contradictory, since it implies that escalation has the most pay more, and equality implies that we all pay the same . The ultimate progressive tax is the income tax (PIT): if you earn 17,000 euros, the rate is 15%, whereas if you earn 50,000 euros, the rate is 24% (simplifying a lot and all the nuances of world that can found in the tax law). I said, the more you have, the more you pay. VAT, for its part, is a great example of the principle of equality, because no matter how you win, everybody pays 16%. So far so good, I hope.
Well, now let's see the current situation and the effects of a VAT hike, albeit with the rigor of a person without notions of economics. The question is: Who most noticeable increase in VAT, a person earning € 6,000 a month or a person who is unemployed living at 800 € a month? For the person who is unemployed, of course. Thus we see how the VAT is in fact a regressive tax with effect or in other words, especially affects the poor people. Hence
cost me see a consistency between what the prime minister says and what it does. If you want to increase revenue in order to provide more social services (say re-education courses, say pay off) is better to raise taxes on high earners and go for investment companies that do not really know what they are but it has something to do with where the pasta hide the great fortunes of the country (and only pay 1% tax.) With an increase in VAT hurts the people you're trying to help.
Today I'll make a brief comment on that area of \u200b\u200bknowledge that meet the law, politics and economy and that we love to everyone: taxes! I've never been a fan of financial and tax law, but want something that you have left after 3 months on the subject matter. And this whole tax issue is highly topical, as it was presented today in Parliament the draft State Budget for 2010 which includes, among other measures a rise of value added tax (VAT) from 16 to 18%. I focus on this specific point and why I think is wrong as a strategy to overcome the crisis.
There are basically two guiding principles of taxation: equity and progressivity (31.1 EC). These two principles are somewhat contradictory, since it implies that escalation has the most pay more, and equality implies that we all pay the same . The ultimate progressive tax is the income tax (PIT): if you earn 17,000 euros, the rate is 15%, whereas if you earn 50,000 euros, the rate is 24% (simplifying a lot and all the nuances of world that can found in the tax law). I said, the more you have, the more you pay. VAT, for its part, is a great example of the principle of equality, because no matter how you win, everybody pays 16%. So far so good, I hope.
Well, now let's see the current situation and the effects of a VAT hike, albeit with the rigor of a person without notions of economics. The question is: Who most noticeable increase in VAT, a person earning € 6,000 a month or a person who is unemployed living at 800 € a month? For the person who is unemployed, of course. Thus we see how the VAT is in fact a regressive tax with effect or in other words, especially affects the poor people. Hence
cost me see a consistency between what the prime minister says and what it does. If you want to increase revenue in order to provide more social services (say re-education courses, say pay off) is better to raise taxes on high earners and go for investment companies that do not really know what they are but it has something to do with where the pasta hide the great fortunes of the country (and only pay 1% tax.) With an increase in VAT hurts the people you're trying to help.
Seeing as is the patio, I can only join the chorus of critical voices with government performance. What you do you think?
Cuidarsus!
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