In theory if it stimulates the economy as hoped then it could be almost, if not entirely self-funding.
In a similar way to how income tax receipts increased when Thatcher slashed the top rate of income tax in the 1980s.
VAT to be cut by at least 2%!
- Thread starter Hen_Dawg
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In theory if it stimulates the economy as hoped then it could be almost, if not entirely self-funding.
In a similar way to how income tax receipts increased when Thatcher slashed the top rate of income tax in the 1980s.
If only Labour hadn't screwed the country with it's (sic) tax and spend and deficit spending policy when the going was good, they might be able to show some fiscal responsibility now.
Sadly, it seems that fiscal irresponsibility is in fashion at the moment
I'd have thought you would support this move rather than having knee jerk opposition to it.
Looks like Labour are planning for the election. 2% off VAT sounds good, but analyse it and its worth next to nothing.
It wont. They are hoping that it will fix the economy and everything will be rosey in 12 months time. Although no one has put the question what happens if it isnt.
It wont. They are hoping that it will fix the economy and everything will be rosey in 12 months time. Although no one has put the question what happens if it isnt.
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Soldato
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I can see most Highstreet retailers just keeping their prices as they are now. I mean, how many average joes actually know what VAT is, let alone what the current rate is.
I imagine virtually everyone knows both of those things.
In any event, you don't have to know you are getting a tax cut in order to benefit from it, or for the country to benefit from it.
Soldato
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Really? There're several people I know that would scratch their heads if you asked them about VAT. And some who know what it is to a certain degree, that is, they know when they're shopping online that they need to look at the price with VAT, but beyond that they've no clue.
Soldato
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i earn a good wage and im struggling at the moment, i dont have any outgoing luxurys, my pc is the only luxury i have personally i havent spent a bean on it as i work in a computer shop at the moment and my boss is quite cool that and hes a long time friend pre work, anyway that aside i work hard for my money and it seems im working just to pay bills all the time im getting seriously fed up with this as are countless others, now our VAT goes to brussels which as far as i know fuels the EU, i went through brussels last year to visit my family and that place is a cra* hole, broken pavements, weeds coming up the middle of roads and a general **** hole, our money is going out of our pockets and somewhere else.
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Not directly it doesn't - it goes into the Exchequer's coffers like all other taxes.
Soldato
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yeah and then in to the fat cats banks and then in to fur coats and diamonds etc etc...
yes. with future tax increases that everyone will pay and can't opt out.low income earners are going to pay more tax in the future, and not benefit from a drop in vat, energy vat is 5% food vat is 5% goods is 17.5% so who benefits? people that have the money.
That makes no sense. Also there is no VAT on food.
On a lot of food there is, even orange juice has vat on it.
I'm not that clued up on this sort of thing, but didn't this entire mess come about because too many people were spending money they didn't have?
As a result it went too far - banks went bust and now we are where we are. And now the government are encouraging us to continue the same behaviour which caused it, In the form of spending more money we don't have.
I don't see how its responsible to condone people to blow all their money and start spending again, not with the amount of companies laying people off and putting them at risk.
Although it'll ensure the government will continue to get all its taxes paid and Hector won't go broke, but what does that matter to me? As a high earner I pay so much tax and see so little back for it, why should I be encouraged by this latest desperation.
As a result it went too far - banks went bust and now we are where we are. And now the government are encouraging us to continue the same behaviour which caused it, In the form of spending more money we don't have.
I don't see how its responsible to condone people to blow all their money and start spending again, not with the amount of companies laying people off and putting them at risk.
Although it'll ensure the government will continue to get all its taxes paid and Hector won't go broke, but what does that matter to me? As a high earner I pay so much tax and see so little back for it, why should I be encouraged by this latest desperation.
heres what you do and don't pay VAT on
http://customs.hmrc.gov.uk/channels...HMCE_CL_000136&propertyType=document#P19_1841
http://customs.hmrc.gov.uk/channels...HMCE_CL_000136&propertyType=document#P19_1841
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
On some food there is, not on most.