|Inequality is perceived as class or race bias.|
However an analysis shows that the root cause is greed and corruption, in hierarchies of politics, law, finance and education.
These tax pages catalog UK's inequality problems in political finance (and `culture').
Laworjustice page does the same for policing and courts, where gender and age biases are subsets. Schools pages similarly expose education biases. Morals page examines the same problems - ever present, though covert in UK - in hierarchies of churches.
Impact of VAT on cost of necessities
If you're an ordinary working person, you pay an extra tax of 40% -50% of your spend.
[That's in addition to two NI taxes, and PAYE]
For those who are forced to spend all of their income on necessities, that is the real cost of the corrupt & inefficient VAT.
Because most or all money earned by the non-rich (the 99%) must be spent on necessities.
Therefore VAT - a tax invented to pay the high salaries of greedy bureaucrats and politicians in the new EU - inflicts another wasteful tax-cost on all European countries. [BTW - Lying UK bureaucrats & politicos claim "There is no VAT on food / childrens clothing" - WRONG! The cost of VAT is all-pervasive and similarly increases the price of all products, even untaxed ones.]
Merely to profit greedy politicians, about 25% - 40% of UK's (and Europe's) Gross Domestic Product (GDP) is wasted: thrown down the drain of tax-inefficiency and tax-corruption.
Indirect taxes, mainly VAT, are stupidly inefficient [below], and therefore stupidly and corruptly high for the middle-incomed and the poor.
Those with very high incomes don't need to spend everything on necessities. So they escape almost all indirect taxation, and can also profit from tax-free savings schemes - these are forbidden to the poor of course, but are _paid-for_ by the poor. ref10 ref11
Transport and fuel taxes of about 90% are taken from the poor and from ordinary people on middle-incomes. ref12
But the 'establishment' - i.e. MP's and their like - actually profits from subsidies and allowances for transport, fuel, and energy use - these subsidies are given only to the rich, as `business allowances'.
N.B. Unfair VAT and labour taxes cost families, pensioners and other small item buyers about 50 - 60% more on their food and consumable items.
This tax decreases - for those capable of 'quality' spending - by their buying larger quantities and higher quality products, which incur less tax costs. Therefore the rich pay less indirect tax even within their tiny fraction spent on 'necessities'.
ALL INDIRECT TAXES ARE UNFAIR - lowdown at fuel, lowages & reptiles.
Politicians and bureaucrats always lie about taxes.
They claim the COST of an indirect tax is equal to the tax RATE.
Ie. now 17.5% for VAT.
TRUTH - When VAT was first introduced (at a RATE around 8%) a British Independent TV team found that, within ten or so years, the extra COST had escalated, adding up to 42% on manufactured items.
We estimate today's real COST of VAT is around 60% plus.
This hidden tax is paid in full by a poor person - ie. a tax of 60+% on necessary spending;
but VAT need only COST 6% tax to a person with 10 × that income,
and only 0.6% to the very rich with 100 × that income.
Date: 21 March 2000
11 Jan 2001 - Children link01 of the poor are barred from school for not wearing expensive compulsory school uniforms their overtaxed parents can't afford.
1999 - Many councils link02 now charge fees for "public" services paid for by poor peoples' taxes - educational link03 & link04 facilities, museums, even "public" washrooms or lavatories.
So the poor and lower-incomed can't use them!
Now young mothers and anyone out-of-work, paying vastly higher real tax rates than the well-off councillors and their richer friends, are corruptly excluded from use of services (and grants) for which they (the poor) are paying so much.
Hypocrite councillors and rich senior civil servants are thus exposed as liars link07 and thieves. For the the middle-incomed and the poor - who pay the highest rates of local tax, are now excluded, by unfair costs, from the very services for which they are paying so highly.
The truth of Adam Smith's statement above is born out by admissions of the Chancellor of the Exchequer - of the most corrupt government in recent British history - Norman Lamont:-
"reducing a tax or even abolishing one can bring in more revenue"
and, on the "Petroleum Revenue Tax"
"...because of its generous regime of reliefs it had become a drain on the Treasury rather than a source of revenue".
[the Oil Companies complained when the tax was abolished]
[from p346 of "In Office" by Norman Lamont - ISBN 0-316-64707-1]
`Perceptions' editor (me) wrote to John Major (then UK Prime Minister) asking why his government allowed Duke of Westminster (England's richest so-called "aristocrat") to escape 99.9% of the taxes that we poorer people are forced to pay.
[E.g. the Duke pays less than 0.001% property tax (`council tax'), while many poor people are forced to pay 1000% - a tax rate one million times higher than the Duke's
The Duke - like other rich aristocrats (and all national politicians) - is paying much less tax than the national average and is therefore a criminal parasite (and pervert), feeding off the poor - see here & here]
John Major instructed his civil servant to answer, saying -
a) that British taxes were 'fair' - a lie;
b) that 'National Insurance' was not taxation - another lie;
c) that the Duke paid fair taxes - yet another lie.
Note: If you were in UK at the time, you might remember another `big lie' from John Major. His lying slogan - `the polluter pays'
As events proved, he'd omitted two words.
Under his Gov't, and every previous and subsequent gov' - "the rich polluter never pays"!