Discover and read the best of Twitter Threads about #regressive

Most recents (3)

Should #Truss go for the ‘nuclear' option of a 5% #VAT cut? In favour…

✅ can be done quickly (immediate boost to spending power)
✅ saves *average* household c£1,300 a year
✅ lowers headline #inflation (temporarily)
✅ struggling businesses could use it to help cashflow...

#VAT is one of the least bad (e.g. non-distortionary) taxes
❌ cutting it would have few supply-side benefits
❌ would be at least mildly #regressive (see my earlier tweet on this 🤓)
❌ a 5% cut would ‘cost’ £38 billion (could be better deployed elsewhere?)...
My verdict: it's right to consider cutting #VAT across the board (not just on #energy). It should only be a 'nuclear' option, as part of a broader package, but the scale of the crisis means everything should be on the table.

#truss #trussonomics
Read 3 tweets
1/ Frustrated and stuck on the @MBTA? Here’s a thread for your morning commute, and a reminder of why the transit system’s main funding source has fallen far short of expectations:
2/ The @MBTA has relied on the “penny on the sales tax” since 2001. At the time, the state thought sales tax revenue would continue to grow by 3 to 8% per year as it had. In 2007, 3% was still “worst case scenario”.
3/ Actual growth of sales tax has, in fact, averaged 1.5% — half what leaders expected. This is partly because of changes in what people buy. Further, the “penny on the sales tax” portion that the @MBTA gets doesn’t include meals.
Read 11 tweets
We've just released the final report by @Alston_UNSR, the UN Special Rapporteur on extreme #poverty, on his visit to the #UK. The report is available here:…. A few key takeaways:
Some have asked me why a UN expert on #poverty would visit the #UK. Unfortunately, although the UK is the world’s 5th largest economy, 14 million are in poverty, child poverty is rising & predicted to reach 40% by 2021, homelessness is up 60%, and food bank use has skyrocketed.
To understand #poverty in the #UK, you have to look at the massive disinvestment in social support since 2010: the end of a centralized social fund, changes to the ways benefits are capped & calculated that substantially reduce their value, the decimation of civil legal aid, etc.
Read 13 tweets

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