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guydreamr
VisualEconomik EN
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Comments by "guydreamr" (@guydreamr) on "The Plan That Nearly Collapsed the UK - VisualEconomik EN" video.
Yes. However, the effect on the poor can be mitigated by having lower consumption taxes on staple items such as flour, sugar, fruits and vegetables, etc. and higher consumption taxes on luxury items like yachts, Ferraris, Hermes bags, etc.
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@ArawnOfAnnwn Well now, let's test your hypothesis then, shall we? Inputting "lower consumption taxes on staple items and higher consumption taxes on luxury goods" into ChatGPT 4 returned the following results: 1) the effectiveness of consumption taxes in terms of reducing consumer demand for luxury goods seems to be negative, since for one thing, these items tend to be "Veblen goods," meaning the demand actually increases when the price is raised. 2) But more to the point, as to whether a consumption tax does in fact effectively redistribute income from the rich to the poor, the evidence seems to be that it does, provided however that the consumption tax isn't too complicated and riddled with loopholes. None of the reasons you mentioned were cited, either as a pro or a con as to effectiveness.
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@Mickeymoon-j2x Do you have a source for any of those statements? I provided mine, now it's your turn.
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