GST here applies to everything including food.
The poor pay a larger % of their income on GST, unless the richer person lives a more luxurious lifestyle.
For example if one person earns 40000 a year and another earns 50 000.
They both have the same lifestyle, same street, similar rent.
They both have similar expenses. The 10k difference can be invested after tax and you don't pay tax on it and get a return.
In our 20 for example we lived almost like students with a better diet. Saved,saved, and saved. No foreign holiday double income no kids.
Our friends did the same.
We both bought houses, then they had kids.
Other friends after graduation had kids, went to Rock concerts, and foreign holidays.
Our incomes were similar but a few if them are renting. We almost have the mortage paid. All that money they spent also got taxed more.
Mortgages also fluctuate less than rent which has doubled but our mortgage rate is essentially the same as 2010.
The sooner you do that the better you are off financially. We avoided tax by not spending and saved for an asset.
Yes
I myself live like a kind of mendicant. Did not invent that. Just continued living regarding luxuries as I was raised at home. My only luxuries were beer/wine in the pubs and smoking when young, and when I had more side money/regular income my own books (and not the library). And I buy bio food (although that feels more like charity).
What you say is like the fable of de la Fontaine, the cricket and the ant.
I was just thinking about that when you got your post first... not only as individual but also regarding heritage at family and state level.
Not to you but in general (as rhetoric question points):
Do you restrict luxuries to yourself to be able to give your children a head start (like no education debt)... do you save up more ?
Or work justenough hours to get around ?
Do you you have children at all ? How does a society with less children, with more life long singles/couples behave regarding legacy for the future ? Like generating/increasing now our Climate & Environmental debt.
How strong is solidarity between the generations ? How strong when you have yourself no offspring as next generation making that heritage more direct. Not abstract societal, but family level ties.
Some countries made or are making a real mess of there public finances.
(I never mind spending lots of public money as long as it is well spent.. but there are too many examples where older generations made life easy with ill-spent money or tax reductions with little effect to the detriment of their youth).
Maarten Luther is ofc known for his reforming stance on catholic convictions of those days.. but my first association with him is the quote (not accurate and is it really original from him ?):
"even if the world goes down tomorrow... that should not prevent you from planting a tree today".