Comment Re:time for a outsouring tax? (Score 1) 427
I'd put income tax in the regressive category.
3K a year off a min wage earner does more damage than a higher rate of tax, on a higher earner.
It's because they have so little leeway, that its damaging.
Here's my prediction. EU is freedom of movement of people, goods, services and capital. So you can move your money to where the tax is cheapest, and countries have to derogate to stop it. Even Greece hasn't done this.
So the rich will move their money to where the tax is the least. Companies, particularly with IP such as royalties and websites will do the same. It's almost impossible to tax a website, although France is trying, and its will be illegal under EU law. Websites are services. So all IP taxes will be lost.
The rich will move money into companies, and just pay the tax on what they take out. ie. Their spending. So for the rich, there will be no difference, its all a sales tax.
So that means more and more governments are going to be forced into sales taxes. It's going to be the only way they can raise a percentage of what they spend.
You're quite right, its going to hit them hard. They've been forced to rely on the state, and the states in Europe are bankrupt. [The big debts are hidden off the books - pensions]
So all taxes are bad for the poor. More so than for the rich.