New VAT rate from the ConLib coalition
Discussion
ConLib are scrapping Brown's proposed increase in National Insurance and pledging to pay down the national debt, so the money's got to come from somewhere.
Although there are many different taxes only a few of them raise BIG money, such as corporation tax, income tax and VAT. What are your bets for the new VAT package and reasoning?
20% mainstream rate (up from 17.5%) - only the spenders pay - moving towards other EU countries
10% domestic energy rate (up from 5%) - encouraging efficient use - clean and green approach
5% rate on food, childrens clothes etc (new tax) - reduce Tesco profits - moving towards EU
Although there are many different taxes only a few of them raise BIG money, such as corporation tax, income tax and VAT. What are your bets for the new VAT package and reasoning?
20% mainstream rate (up from 17.5%) - only the spenders pay - moving towards other EU countries
10% domestic energy rate (up from 5%) - encouraging efficient use - clean and green approach
5% rate on food, childrens clothes etc (new tax) - reduce Tesco profits - moving towards EU
I'm sure VAT will go up and every other Tax/stealth tax and new taxes will be invented but may I ask a stupid question.
VAT was reduced in order to help the economy and get people out buying stuff. Won't increasing VAT have the opposite effect, and If so is that not to be avoided in a strugling economy?
VAT was reduced in order to help the economy and get people out buying stuff. Won't increasing VAT have the opposite effect, and If so is that not to be avoided in a strugling economy?
Pesty said:
I'm sure VAT will go up and every other Tax/stealth tax and new taxes will be invented but may I ask a stupid question.
VAT was reduced in order to help the economy and get people out buying stuff. Won't increasing VAT have the opposite effect, and If so is that not to be avoided in a strugling economy?
very good observation.... VAT was reduced in order to help the economy and get people out buying stuff. Won't increasing VAT have the opposite effect, and If so is that not to be avoided in a strugling economy?
Exactly what putting it back up to 17.5% has done!
The logic eh?
20%... up goes fuel as well!
Anyhow, let's not give them ideas how we think. They might be reading these threads...
Talking of reading...
Keep your bl**dy vat of my books!!
Just remember Mr Osborne, another election could be close.
You want my vote... don't you?
The logic eh?
20%... up goes fuel as well!
Anyhow, let's not give them ideas how we think. They might be reading these threads...
Talking of reading...
Keep your bl**dy vat of my books!!
Just remember Mr Osborne, another election could be close.
You want my vote... don't you?
dandarez said:
Just remember Mr Osborne, another election could be close.
You want my vote... don't you?
The country is in chronic debt, whether we like it or not, someone has to tackle this. At some point, we, the public are going to have to repay it. The longer we wait, the worse the problem will be.You want my vote... don't you?
This can never be repeated enough:
The Labour Party left office with public borrowing growing by £460m PER DAY.
Pesty said:
I'm sure VAT will go up and every other Tax/stealth tax and new taxes will be invented but may I ask a stupid question.
VAT was reduced in order to help the economy and get people out buying stuff. Won't increasing VAT have the opposite effect, and If so is that not to be avoided in a strugling economy?
The reduction in VAT had no noticeable beneficial effect as in many cases, the expected price reductions were not passed on to the consumer.VAT was reduced in order to help the economy and get people out buying stuff. Won't increasing VAT have the opposite effect, and If so is that not to be avoided in a strugling economy?
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