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Comments by "" (@badluck5647) on "Why Is Denmark So Rich Despite Huge Taxes?" video.
In Texas, sales taxes are about 8.25%, but it is 0% for groceries to avoid putting to much burden on the lowest earners. The issue is now you have state officials and lobbyists deciding what is considered necessary groceries. For example, after "completing unrelated" donations from bottle water manufacturers, Texas decided that bottle water are completing necessary for every household and therefore it won't be taxed.
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@twinmama42 It sounds like government officials and lobbyists are deciding winners and losers in your economy. With the right donations, your high sugar drink with 5% juice can be reclassified as healthy and taxed at a lower rate than competitors. Due to it being a value-added tax instead of a sales tax, the taxpayers/consumers won't ever know what game the politicians are playing.
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VAT is also a great way to get the lower and middle class to actually contribute to tax revenue instead of over relying on the highest earners.
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