Many EU countries have a “VAT” and like feel like this is kinda targeting poor people. Like, for the rich, this is insignificant, for poorer people, a (example) 20% tax would be a huge burden. Why do they do this?

🤔

  • MothmanDelorian@lemmy.world
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    1 day ago

    Ideally the impetus to cut taxes would be as a response to a recession to get the economy moving. Im not advocating cuts for cuts sake.

    • Lauchs@lemmy.world
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      23 hours ago

      Ahhhh, gotchya, sorry missed that!

      Though, I think tax cuts are fine to spur demand (especially targeted at lower income levels) though I’m a little hesitant about cutting spending. I’m in the camp that feels deficit spending is okay, maybe even desirable for things like recessions and wars. Spending cuts usually act as a drag on growth so if your goal is to heat up an economy, cutting taxes AND spending seems counter productive…