What is worst, according to Melencio, is "the effect of these regressive taxes
was across-the-board but the increased exemptions to income taxes were only felt by the rich and the middle class".
Direct Taxes are based on income while Indirect or Regressive Taxes
are based on Consumption.
She said: "Fine Gael and Labour's regressive taxes
attack the family home.
Raising the gas tax and raising the cigarette tax are both regressive taxes
. I've been someone who has always railed against regressive taxes
I am on record both locally and nationally as saying it is one of the most ill-thought out and regressive taxes
that I have ever seen.
are taxes that take a larger share of income from middle- and low-income groups than from higher income groups; proportional taxes take the same percentage of income from all, regardless of income; progressive taxes take a larger proportion of income from higher income groups than from lower income groups (Institute on Taxation and Economic Policy [ITEP], 2005).
The lack of a judicious balance between direct and indirect taxes and the levy of regressive taxes
in the garb of income tax and petroleum development surcharge has pushed an overwhelming majority of Pakistanis towards the poverty line.
Or, the revenue could alleviate the burden of other regressive taxes
, such as the payroll tax.
Julian Hunt, Director of Communications at the federation, said: "Regressive taxes
on the foods that consumers love would result only in lighter wallets, not smaller waists.
It has already introduced regressive taxes
on cars to force the most polluting - and generally the oldest - off the road.
The county would be better served to work toward restoring its authority to budget for essential services using less regressive taxes
At a stroke this would reduce inflation, allow lower interest rates and provide the Government with revenue for infrastructure improvements which would feed back into higher land values and generate additional tax yields once again - allowing further reductions in regressive taxes
like VAT and ending reliance on long-term PFI swindles.