Steve Randy Waldman
@interfluidity.com

VAT is regressive. VAT plus universal benefits is not. You can soften the edge of VAT with lower rates on necessities. The issue is, in order to create space for noninflationary expenditure, you have people who spend their marginal income. that limits progressivity of taxes for this purpose. 1/

in reply to this
Steve Randy Waldman
@interfluidity.com

i’d not support the VAT without a portfolio of universal benefits that it funds. that’s the tricky politics: VAT is part of a decent endgame, but you can’t advocate it on its own, you need to negotiate the package. /fin

in reply to self