Shock as poor pay more on VAT than rich
Would you believe that our lovely coalition government are shafting the poorest 20% of UK households? It's shocking isn't it? When you've finished leaking all the surprise out of your body, we'll hit you with the The Poor Spend A Higher Proportion Of Their Disposable Income On VAT Than The Richest 20% whammy.
This is according to the Office for National Statistics said.
So basically, when Chancellor George Osborne announced the increase in his 2010 Emergency Budget was "a progressive tax", he was full of shit.
The ONS say that the poorest fifth spent 9.8% of their disposable income on goods while the richest fifth spent 5.3%. Basically, VAT is being hiked up on the thing being bought by the poorest households.
"This latest piece of research reinforces what is widely perceived to be the fundamental inequality at the heart of VAT: the poorer pay more of it relative to their incomes than the wealthy," said David Breger of HW Fisher & Company chartered accountants.
"It's clear that the Government needs to reconsider the full effect of VAT, which is inherently regressive."