THE VAT DEBATE BY THE FNM: AN EXERCISE IN STUPIDITY

Here’s the deal.  VAT is a retrogressive tax. In other words as a portion of their income, the poor pay more than the rich.  So if you zero rate the tax on bread basket items as a proposition of income, the rich benefit more than the poor. That is the immutable fact.  Further, the experts say that if you want a cheaply administered tax,  the best thing to do is to keep it simple.  No exemptions.  If you want to help the poor, bring social services to the rescue. That is another immutable fact. Fast forward to the FNM, they are beating the dead horse that zero rating on breadbasket items will hurt the poor. Well, we know that it won’t. The mantra of the FNM though is don’t let the truth interfere with a good story.  So they are going to keep saying it over and over again.  The PLP  must keep telling their story before their lies become the truth.