When you hear the media state figures or stats it's always worth remembering what is put to you is for impact.
"Prices only up 3%"
This three per cent makes more difference the less money a person has.
Say an item costs 2 quid and it goes up 3% that's 6p.
But if you compare impact to someone with a tenner against impact of someone with a hundred quid. The relative impact gets visible. Then compare that to impact on someone with a grand.
There's even less impact.
This basic thing may sound easy,
Relative impact is very important.
That's how you arrive at other measures that are important , like...
How much of your income goes on food...
Example someone with a grand spend 20 quid. And then someone with a hundred quid spend 20 .
Why am I explaining so simply?
Because then I can start talking in terms of this basic seemingly simple impact understanding...
And then say that is where the more difficult analysis of regressiveness.
"We will introduce a fair uniform tax of 30%" could be said by a party.
Now how is that fair..
Flat income tax rate is regressive in impact.
Other regressives are VAT. There are more.
Now where did I put that 6p?