Tuesday, August 18, 2009

Kates Playground Oily

. VAT on food and medicine

In recent weeks the media has said the bailout measure to the economy of applying VAT on food and medicine.

As it is already becoming easy to load state spending in those with full effects of the crisis. Given that failed to achieve an efficient fiscal policy and revenue tax is the lowest, it is easy to grab resources which inevitably tilts the expense of citizens.

For the average person to forget the crisis meant unnecessary expenses such as vacations, tours, gustito or whatever you call them. Also review the limited options in other expenses, or as they say, tighten their belts.

Personally, I am aware that an effective and immediate fiscal problem is not possible, and factors acting as financial education of citizens, the credibility of the fate of taxes collected, the equitable distribution of states themselves, and so on. Hence it is must take unpopular measures such as VAT on food and medicine.

Although, although I think the consumption tax is a more effective way of raising the income taxation, the latter should be revised.

Historically we have seen that belonging to the state apparatus is more than a lifestyle. It's like a quasi-nobilístico privilege, and how could it not be! The perceptions of many officials are divided into basic salary, which itself is taxed, and guaranteed compensation to more than ten times the base salary and does not suffer from any tax.

Instead, he is not in this privileged position are asked where are all these deductions shown on your receipt and payroll, the more you win, but you removed.

So I think you should check the type of consumption that is due to tax, especially one who has the ability to consume large extent and thus boost the stagnant economy, instead of selecting a market already themselves punished for the mere fact that a guarantee that to eat and to fight the disease continue consuming.

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