Quote Originally Posted by DryCleaning View Post
VAT isn't regressive by a long stretch as it is a tax on consumption. Its quite progressive if you (i) set the rate high enough and (ii) you zero rate those purchases that are required for everyday living only taxing the true luxuries of life. Those who spend on those luxuries pay the most tax, those who only can afford the essentials pay nothing.
Obviously it can be avoided by not buying anything, but the definition of essentials varies by person.

It's regressive in the sense that someone on £20k a year who needs to run a car pays the same rate as someone on £200k a year who needs to run a car.

Thats another debate altogether though.