QUOTE (FionaK @ 18/5/2011, 13:15)
....
It sounds like we're mainly in agreement that pensions are essentially a wealth transfer tax from the poor to the rich. Do I have that about right? The poor die young and don't collect.
I proposed a VAT surcharge and current account expenditure. What was your alternate proposal?
VAT is a different subject but I think you'd be well to observe that the Conservative government in Canada (led by an economist who for many years helped guide the fiscally conservative Fraser Institute think tank) has consistently
lowered the rate while their Liberal and NDP (socialist) opponents have always established that it could be
raised. VAT are not regressive unless they are applied unequally.
Payroll taxes are and always have been more unequal against the poor. As incomes rise, a larger portion of household revenues are earned from non-payroll sources. Moreover, each succeedingly wealthier quintile is able to take further advantage of tax deferrals offered as incentives to invest for retirement. None of this would be happening (or need to happen) with a secure VAT and plenty of oversight.
Another option, is to train the poor to not die so young and to make them more productive members of society.But that is for another thread, too
Edited by FionaK - 18/5/2011, 22:26
