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paragraph 2
moving away from direct taxation and towards indirect tax will be regressive
logic chain
higher indirect taxes - tax is as a % of spending - low income groups save a lower % of their income
logic chain 2
therefore they spend a greater proportion of their income - therefore increase in taxes of spending has a greater effect - worsens inequality
example
increasing VAT at a time when the cost of living is already increasing is likely to have a significant effect