A simple tax like that on its own is also socially regressive. Implemented on its own, people would go hungry, causing social unrest.
What would you suggest as a simple social stabiliser on top? A negative personal income tax up to a certain rate?
What would you suggest as a simple social stabiliser on top? A negative personal income tax up to a certain rate?
Why would that happen?
For example, in the UK, sales tax is discounted or not applied on many types of food, children's clothes, etc. - yes, you end up with strange arguments at the edges (a famous one being the lawsuit to decide whether Jaffa Cakes are legally cakes or biscuits) but I think it _could_ work.
We had a lawsuit to determine if KitKat is a chocolate or a biscuit for similar reasons:
https://www.businessinsider.in/KitKat-is-a-biscuit-and-Parac...
> In the case of Nestle India Ltd Vs Commissioner of Central Excise, Mumbai of 1999, it was ruled that KitKat is a biscuit and not a chocolate that is taxed high.