For instance, in Mexico, higher income households capture the largest part of the benefits in absolute terms (OECD Economic Survey of Mexico, 2011).7 In France, although reduced rates for essentials and services are usually justified on equity grounds, empirical evidence suggests this is misplaced. The 2013 OECD Economic Survey of France notes two studies that illustrate the ineffectiveness of these policies. Unsurprisingly perhaps, Ruiz and Trannoy (2008) conclude that reduced VAT rates for restaurant meals and yachts are of greater benefit to better-off households than to lower-income persons.