Comments on: Value Added http://alper.nl/dingen/2008/06/value-added/ Just another WordPress weblog Thu, 09 Feb 2012 14:53:15 +0000 hourly 1 http://wordpress.org/?v=3.2 By: alper http://alper.nl/dingen/2008/06/value-added/#comment-449 alper Thu, 19 Jun 2008 22:44:23 +0000 http://alper.nl/dingen/?p=315#comment-449 How do you calculate that? Luxury goods also carry VAT. Is it because rich people in general are able to save a larger part of their income (and become richer)? You don't need to convince me. Give me a tax law book and a black marker and I'm sure I can come up with a ton of usability improvements. How do you calculate that? Luxury goods also carry VAT. Is it because rich people in general are able to save a larger part of their income (and become richer)?

You don’t need to convince me. Give me a tax law book and a black marker and I’m sure I can come up with a ton of usability improvements.

]]> By: Reinier Zwitserloot http://alper.nl/dingen/2008/06/value-added/#comment-448 Reinier Zwitserloot Thu, 19 Jun 2008 14:42:13 +0000 http://alper.nl/dingen/?p=315#comment-448 Weird. Rich people like VAT - they spend far less percent of their total income on VAT-carrying goods. It's like an inverse tax disc system: The more you earn per year, the LESS percent of that income you have to hand over to the government. Jan Modaal is indeed getting specifically screwed with high VAT. In fact, the existence of both VAT and progressive income tax (where the % of income you have to hand over increases as you earn more) is one of the reasons I use to convince people that we should toss out all that complication and just have a flat 40% tax on everything you earn, no VAT whatsoever. VAT is too complicated anyway; How many millions of euros are wasted every year in determining exactly which bits are value add? Weird. Rich people like VAT – they spend far less percent of their total income on VAT-carrying goods. It’s like an inverse tax disc system: The more you earn per year, the LESS percent of that income you have to hand over to the government. Jan Modaal is indeed getting specifically screwed with high VAT.

In fact, the existence of both VAT and progressive income tax (where the % of income you have to hand over increases as you earn more) is one of the reasons I use to convince people that we should toss out all that complication and just have a flat 40% tax on everything you earn, no VAT whatsoever.

VAT is too complicated anyway; How many millions of euros are wasted every year in determining exactly which bits are value add?

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