If you must raise taxes, raise VAT
Taxing consumption is economically efficient and politically possible
The rich world’s states are getting bigger and less effective—and the forces that are the cause cannot easily be turned back. As governments look after ageing populations and fight wage inequality, they are doling out more in pensions and benefits. From 1980-2022, social spending in rich countries with available data rose from 14% to 21% of GDP.
Explore more
This article appeared in the Leaders section of the print edition under the headline “The case for VAT”
Leaders September 28th 2024
- The war is going badly. Ukraine and its allies must change course
- An Israel-Hizbullah war would be a disaster for both
- If you must raise taxes, raise VAT
- How worried should Sri Lanka be about its ex-Marxist president?
- The sinking feeling caused by Labour’s clumsy start
- YouTube’s do-it-yourself brigade is taking on Netflix and Disney
From the September 28th 2024 edition
Discover stories from this section and more in the list of contents
Explore the editionDiscover more
The front line of the tech war is in Asia
The two superpowers are vying for influence. China will not necessarily win
How high could the oil price go?
Geopolitical risk is rising. But so is the supply of oil
The Trumpification of American policy
No matter who wins in November, Donald Trump has redefined both parties’ agendas
How Florida should respond to Hurricane Milton
Storms like it raise uncomfortable questions about the state’s future
Britain should not hand the Chagos Islands to Mauritius
Once again, the Chagossians have been denied a say
A map of a fruit fly’s brain could help us understand our own
A miracle of complexity, powered by rotting fruit