Or this:He [correctly] doesn't wish to be associated with attacking the least well off while FFailing to tax the wealthy:
VAT increase adds up to an unfair burden on lowest paid - The Irish Times - Mon, Jan 02, 2012
"First, consumption taxes generally have a more regressive distributional impact than other forms of tax. People on lower incomes spend all, or most, of their incomes, and will attract more VAT as a proportion of their income compared to people whose higher incomes permit them to save.
The VAT change means that many ordinary items, including adult clothing, some food and telephone calls, will go up in price, even though basic foodstuffs and children’s clothing are zero-rated for this levy.
While the Minister is correct to say businesses pay a lot of VAT, studies show the vast majority of this sort of tax increase is passed on to customers.
In addition, the choice of the value added levy instead of income tax puts a higher burden on people who have lower incomes. Evidence presented earlier this year by Economic and Social Research Institute researchers bears this out.
They found the groups hardest hit from an increase in the standard rate of VAT to 23 per cent will be households in the poorest income decile, households in rural areas, six-person households and those containing a single adult with children.
In other words, people on the lowest incomes may have no choice at all but to lower their standard of living.
The impact of a budget is, of course, cumulative. And many of those who will bear the brunt of the latest VAT increase have already been hit by previous budgets."
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