Re:France has approved a digital services tax despite threat...
by pyrale on Thursday July 11, 2019 @03:12PM
(#20414568)
LVT and VAT are considered effective because they're hard to dodge and easy to collect.
They pose major problems in terms of tax fairness though. The reason for this is that VAT efects the poorer disproportionately (poor people spends almost 100% of their income, while richer people won't spend a larger fraction of their revenue) while LVT targets the middle class (AKA those that don't have enough capital to diversify their assets and invest beyond their home).
They pose major problems in terms of tax fairness though. The reason for this is that VAT efects the poorer disproportionately (poor people spends almost 100% of their income, while richer people won't spend a larger fraction of their revenue) while LVT targets the middle class (AKA those that don't have enough capital to diversify their assets and invest beyond their home).