VAT is a great way to tax. There should be more of it and less of other taxes. The reason why there are so many rules is the desire to create a fair system.
A flat tax + VAT doesn't offer much in incentives and disincentives. And it will lead to all kind of unfair decisions.
As a society you do want to retain tools to encourage good behaviour and especially to reward long term thinking.
Reality is messy...
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"The reason why there are so many rules is the desire to create a fair system."
But system won't be fair at all.
I can only speak for german tax system other I don't know.
One example: If you should move for job to another town you have two possibilities:
Both have often the same expensis.
What Nr. 2 have to pay (petrol, car insurance, ticket for public transport and so on) tax authority will deduct from his salary before calculating tax.
But Nr. 1 have to pay the same because he pay higher price for renting flat. But this is not interesting for tax authority.
Is this fair ?
In Germany if you rent flat on landscape you pay often for one square meter between 3 and 4 Euro, but f.e. in munich you pay approximately 20 Euro, so difference are quiet high.
Generally speaking people in cities pay more for a house since the ground and property is rare but they also have a higher income. It is the same in Holland. So if you are smart go live on the countryside.
Yes but people who work in city have decision to life in city or on the countryside.
But I think not, that state should only accept expences from them who live on the countryside (driving cost) and not expences from them who live in city (higher rent).
In my opinion the most logical and fair system would be to take average expences and add to them the cost of working with tax declaration for this point - the result of this everybody get as tax free income and everybody must take his individuell costs.
But in my opinion german state don't make this because he don't make tax system easier because in this case tax advisor would loos their work.
You have a good point here @udow
We must remember that those who create taxes do not care if those taxes are fair or not. What they care is: if people can afford to pay those taxes without protesting (the way french do right now).
Cheers
Piotr
@crypto.piotr I doubt they care if the taxes can be payed... just hushing at the moment and within 6 months ot will be payed one way or the other, "Prince John loves Nottingham"
Yes without protesting or to vote at next eligation for another party.
Hi @bluerobo
It's great to see how responsive you are. Steemit indeed needs more people like you.
Im not sure if this would be the best solution.
Dont you think that if other taxes would be abolished then VAT would have to be increased like crazy?
Cheers
Piotr