Winky refuses to rule out VAT rise..................

[AndrewW-G]

Now we know why the scum/Nazi/labour party have been banging on about not putting income tax up...................... they are refusing to rule out a VAT rise, so looks like a vote for winky will also be a vote for higher VAT rates to pay for all their terrible policies of the last 13 years

Yes I know that there is also a chance that the conservatives may well do the same thing, however labour have used that to bash the conservatives even though they want to do the same thing!

[turbobloke]

And then you have to consider whether he would rule out extending the scope of VAT as well as the various existing rates.

[AndrewW-G]

turbobloke said:

And then you have to consider whether he would rule out extending the scope of VAT as well as the various existing rates.

Kids clothing and food will no doubt get whacked with a "starter" rate

[amir_j]

according to what I read somewhere, Tories suggested VAT increase and Gordo blasted them over it.

Now thinks its a good idea!

[HundredthIdiot]

amir_j said:

according to what I read somewhere, Tories suggested VAT increase and Gordo blasted them over it.

Now thinks its a good idea!

Indeed, a quick Google suggests that the Tories are traditionally the VAT party (I'm not point scoring in any way, just think it's interesting).

It's not a very New Labour thing, as VAT has always been seen as "non-progressive". They must be desperate.

Yahoo Answers said:

In 1979, the UK had a Zero Rate, a Basic Rate of 12.5 per cent charged on "luxury" items and a reduced rate of 8 per cent charged on most other goods and services. When the Conservatives came to power that year, Chancellor Geoffrey Howe increased both of these to a single rate of 15 per cent, to partially offset the impact of large cuts to the Basic and Higher Rates of Income Tax. This was portrayed as a deliberate move aimed at shifting the burden of taxation from earnings to consumption.

VAT remained at 15 per cent until 1991, when Norman Lamont increased it to 17.5 per cent. This step was intended to provide revenue for the "Community Charge Reduction Scheme", aimed at assisting local authorities suffering from the fall-out of massive levels of defaulting on the "poll tax".

[B17NNS]

A tax on consumption. Everyone has to pay it if you want to buy stuff, not just those who work hard.

One of the fairer taxes in my opinion.

[Soovy]

B17NNS said:

A tax on consumption. Everyone has to pay it if you want to buy stuff, not just those who work hard.

One of the fairer taxes in my opinion.

This.

The more you buy the more you pay. Simple and fair.

[turbobloke]

Soovy said:

B17NNS said:

A tax on consumption. Everyone has to pay it if you want to buy stuff, not just those who work hard.

One of the fairer taxes in my opinion.

This.

The more you buy the more you pay. Simple and fair.

Doesn't the efficacy of the strategy from the government perspective rely on people maintaining their spending?

If a lot of folks just made do and mended everything, went to Skegness on foot for holidays and put chip oil into the Pug diesel, so far fewer goods and services are traded, where does this help getting the country's problems sorted? It seems like it could backfire.

What about putting the rate of VAT back down, encouraging more joe public purchases of goods and services, supporting both manufacturing and the service sector, and getting a larger tax-take overall than if the rate had been put up?

Isn't it a close call as to which way to go? Just asking

[B17NNS]

Soovy said:

Simple and fair.

Two words that don't belong anywhere near our taxation system.

[Mikeyboy]

It's chicanery though isn't it. Because the other voter is a bit dumber than you they don't mind VAT going up becuase its not out of their wage packet.
So as long as the government isn't putting up Income Tax the average voter thinks they aren't being taxed more.
raising VAT is as odious as raising NI. Effiency is the key

[theaxe]

B17NNS said:

A tax on consumption. Everyone has to pay it if you want to buy stuff, not just those who work hard.

One of the fairer taxes in my opinion.

Will benefits rise to cover the increase in the cost of living?

[Yeast Lord]

I would like to see more cuts than tax rises as the public sector doesn't need to be this big. Mr Brown is thinking along the lines that if you take billions of pounds out of the public sector those pounds leave planet earth. If people have more money in their pocket their more inclined to consume, so the private sector ends up providing more jobs and paying more tax.

[Elroy Blue]

Labour won't increase income tax.

They will increase National Insurance (again). Now NI is taken out of my wages every month as a percentage of my income. So that'll be income tax by another name then!!!!

Edited by Elroy Blue on Monday 12th April 19:04

[Iain328]

musclecarmad said:

Soovy said:

B17NNS said:

A tax on consumption. Everyone has to pay it if you want to buy stuff, not just those who work hard.

One of the fairer taxes in my opinion.

This.

The more you buy the more you pay. Simple and fair.

i'd much rather high vat and high consumption taxes than high income taxes.

Except that higher VAT will just drive more money into the "black economy" where neither VAT is paid on transactions nor tax paid on earnings/profits.

Raising VAT isn't a great idea IMO - its difficult and expensive to manage.

Edited by Iain328 on Monday 12th April 18:57