VAT is going up to 20% say government

[NickK]

Coalition Government Con/Lib had agreed to rise VAT from 17.5% to 20.0% by end of 2011 when the emergency budget to be announced within 50 days say the latest BBC news.

Once again, David Cameron is lied to the British Peoples when he told Labour Party that he will not rise any VAT under conservative government.

http://news.bbc.co.uk/1/hi/business/10112936.stm

Thank alots Tory/Lib!

Bring back Labour Party !!!!

So in a socialist government you work and you don't have your money.. so you're complaining against money being taken away from you and to bring back Labour..


Tough decisions that people won't like are going to hit everyone. Get with the program on this.

 

[oweneades]

A VAT increase kind of makes sense in the current climate for two reasons (at a very high level).

1) We have the third lowest rate in all of Europe, bringing it up to 20% brings us in line with the rest of Europe (although I would have preffered to see a 19.5% rate).

2) It doesn't affect the 'poor' as much as the papers will make out. Generally speaking it doesn't touch the 'basics' (in many ways it can still be considered a luxury tax).

TBH given the current defecit we have to do something and increasing VAT is a quick and relatively painless way of doing it -an extra £2.50 on every £100 spent on standard rate goods - (unlike other proposals the legislation and guidance is already there so it won't be 'expensive' to implement).

 

[D.P.]

At the risk of starting a flame fest.

What was wrong with poll tax - we all pay the same for a loaf of bread, we all pay the same for petrol, we all pay the same for electricity. Why shouldn't we all pay the same for policing, rubbish collection etc.

Sure 'rich people' might live in bigger houses but they will only use more services if they have more people under the roof in which case they would have paid more poll tax ?

It was a simple *FAIR* policy unlike council tax which is complicated and unfair. Why should a family of 6 in a small house pay less than an elderly retired couple in a big house when they will use more services ?

Nothing was wrong with Poll tax, it is simpler and fairer and more efficient to run.

There were some implementation problems but nothing that couldn't be dealt with.

 

[D.P.]

I think you will find it is a regressive tax.

A regressive tax is a tax that takes a smaller proportion of a income as income rises. As your earnings rise you still pay the same amount of tax so as a proportion of your income it is smaller, hence regressive.

And what is wrong with that?

 

[fidget]

Coalition Government Con/Lib had agreed to rise VAT from 17.5% to 20.0% by end of 2011 when the emergency budget to be announced within 50 days say the latest BBC news.

Once again, David Cameron is lied to the British Peoples when he told Labour Party that he will not rise any VAT under conservative government.

http://news.bbc.co.uk/1/hi/business/10112936.stm

Thank alots Tory/Lib!

Bring back Labour Party !!!!

VAT is going up to 20% say government

Where exactly does it say that on the article?

 

[Citizen420]

Bring back the poll tax!!!!

 

[badcompany]

Thank alots Tory/Lib!

Bring back Labour Party !!!!

1./ its labour fault we are in so much of a mess
2./ they would have had to do the same

 

[OCDStevo]

Labour should have put VAT up to 20% after the cut to 15%, the decided not to until after the election (if the won) anyone without thier head in thier arse and not wearing red tinted glasses can see this.

The country has a massive debt to serve caused by an incompetent Government, they would have had to raise taxes if we had been unlucky enough that they won the election.

 

[mrochester]

And what is wrong with that?

The poor get poorer and the rich get richer.

 

[arknor]

2) It doesn't affect the 'poor' as much as the papers will make out. Generally speaking it doesn't touch the 'basics' (in many ways it can still be considered a luxury tax).

you do live in the real world right? do you even look at receipts

 

[Andrew_McP]

The poor get poorer and the rich get richer.

I am in favour of a fair tax system (though mostly in relation to affordable housing), but it's hard to argue that VAT affects the poor significantly. Essential electrical goods have never been cheaper. Washing machines, toasters, and even computers (arguably essential these days) are all available at bargain basement prices compared to the past, and the further back you go the worse it gets. We really are better off than we used to be... and I talk as someone with below average (or even median) earnings.

So it's important to keep a sense of perspective. We have blurred the line between luxury and essential thanks to 20 years or so of expanding virtual wealth (ie national and personal debt), and perhaps it's time for all of us to sit back and work out exactly what the difference is between need and want.

Ultimately the best way for the poor to stop being poor is to work harder, stop buying junk, and -- the secret weapon of the middle classess -- stop having kids so young. The latter concentrates more money in fewer generations... though in recent years the benefit system has expanded to make up that gap to an extent, which is unfortunately part of the problem.

We are going to be living through some very "interesting" times, and I think we're all going to have to think a bit harder about things we used to take for granted. Especially those who don't have the benefit of previous experience of really tough times in this country.

Andrew McP

 

[Cosimo]

Coalition Government Con/Lib had agreed to rise VAT from 17.5% to 20.0% by end of 2011 when the emergency budget to be announced within 50 days say the latest BBC news.

Once again, David Cameron is lied to the British Peoples when he told Labour Party that he will not rise any VAT under conservative government.

http://news.bbc.co.uk/1/hi/business/10112936.stm

Thank alots Tory/Lib!

Bring back Labour Party !!!!

First of all get your facts right the report says:

VAT is set to rise under the new coalition government, according to a BBC survey of influential economists.

Of 28 independent economists currently used by the Treasury to assist its forecasts, 24 said they expected the rate to rise in the coming parliament.

The majority predicted a rise from the current 17.5% to 20% before the end of 2011. Analysts say a 20% rate would raise an estimated £11.5bn a year.

Nowhere does it say it will, maybe you should learn how to read, where you taught under a Labour government?

Thank alots Tory/Lib!

Bring back Labour Party !!!!

Thanks a lot for what, there will be tax rises, anyone who thinks otherwise in this current climate is a fool. So you dear defeated labour goons would be planning them a well.

 

[mrochester]

I am in favour of a fair tax system (though mostly in relation to affordable housing), but it's hard to argue that VAT affects the poor significantly. Essential electrical goods have never been cheaper. Washing machines, toasters, and even computers (arguably essential these days) are all available at bargain basement prices compared to the past, and the further back you go the worse it gets. We really are better off than we used to be... and I talk as someone with below average (or even median) earnings.

So it's important to keep a sense of perspective. We have blurred the line between luxury and essential thanks to 20 years or so of expanding virtual wealth (ie national and personal debt), and perhaps it's time for all of us to sit back and work out exactly what the difference is between need and want.

Ultimately the best way for the poor to stop being poor is to work harder, stop buying junk, and -- the secret weapon of the middle classess -- stop having kids so young. The latter concentrates more money in fewer generations... though in recent years the benefit system has expanded to make up that gap to an extent, which is unfortunately part of the problem.

We are going to be living through some very "interesting" times, and I think we're all going to have to think a bit harder about things we used to take for granted. Especially those who don't have the benefit of previous experience of really tough times in this country.

Andrew McP

I love the suggestion that people are poor because they don't work hard! Granted, that may be true of *some* people, but you can bet that the vast majority of poor people are hard workers that simply lack the skills, training, confidence and intelligence to do anything other than a low paid job. Should these people of natural lower ability be penalised? I'm not trying to sound superior or condescending, but there are millions of people just like that in our country, who, by frequently doing some of the most disgusting, boring and demoralising jobs that are essential that others wouldn't touch with a barge pole, should be granted the benefit of having some money to spare to afford a few luxuries. Why are they any less deserving even if they work just as hard?

I agree that people do need to reign in their expectations. A 40" flat screen TV is hardly essential, yet in the poorest households you're still likely to find one! But the rich also need to realise that a 40" flatscreen for each of the 8 bedrooms in their house isn't essential, and they shouldn't be permitted to see their wealth needlessly increase at the expense of someone who is much poorer than they are.

 

[robgmun]

Coalition Government Con/Lib had agreed to rise VAT from 17.5% to 20.0% by end of 2011 when the emergency budget to be announced within 50 days say the latest BBC news.

Once again, David Cameron is lied to the British Peoples when he told Labour Party that he will not rise any VAT under conservative government.

http://news.bbc.co.uk/1/hi/business/10112936.stm

Thank alots Tory/Lib!

Bring back Labour Party !!!!

Are you an idiot bulldog? I think you are mate, either that or you're a product of Labour education, because you haven't learnt to read properly

VAT is set to rise under the new coalition government, according to a BBC survey of influential economists.

It's right there, on the first paragraph. The government has said nothing about raising VAT, so they haven't lied even if they did say they wouldn't, which they haven't

And even if they did, who's fault was it that they have to? That’s right, anyone who’s looked at the economy or politics over the last 2 years would know that it was Labours fault

Yeah, you're an idiot, through and through

 

[LOAM]

There comes a time when you have to stop throwing fuel on a fire, for years now Labour/Brown have tried (and in many respects failed) to fight a raging economical crisis by throwing money at it.

The bottom line is no matter who got in, something had to be done and done now. It's not going to be pretty and we all are going to have to go through some level of financial change but rather that than end up like Greece in 12-24 months time, we can't keep borrowing 450million pounds a day to pay off current debt interest, what ever has to be done has to be done.

 

[antijoke]

/Lol.

 

[AGD]

Coalition Government Con/Lib had agreed to rise VAT from 17.5% to 20.0% by end of 2011 when the emergency budget to be announced within 50 days say the latest BBC news.

Once again, David Cameron is lied to the British Peoples when he told Labour Party that he will not rise any VAT under conservative government.

http://news.bbc.co.uk/1/hi/business/10112936.stm

Thank alots Tory/Lib!

Bring back Labour Party !!!!

I don't know if you'll get this but labour were also going to raise VAT even though it wasn't in their manifesto - they would have done the same thing.

 

[NathanE]

Anyone that finds this surprising clearly isn't very switched on.

A 20% VAT rate is likely to be just ONE of MANY tax rises. We have an unbelievably huge budget deficit that has to be brought under control. I voted for the Conservatives under the *full knowledge* that I would end up paying substantially more tax than I am right now. And this shouldn't be surprising. I'd rather pay a bit more tax for a few years if it means this country doesn't become a third-world country. Just look at Greece if you don't believe what can happen to a country with such money problems.

Of course, in 10 to 15 years when the budget deficit is back to normal levels... I am not expecting the government of the time to lower the VAT to 17.5% again. I totally realise that something like this is, pretty much, going to be a permanent change.

It's not Con-Lib's fault. It's Labour's fault. This is how the political system works in this country. We have a period of time where Labour, the big spenders, spend all the cash reserves we have. Then we have a period of time when Conservatives fix all the problems Labour caused in their previous reign of power.

 

[RDM]

And why should someone on £10k a year pay 10% of their salary on this tax, whilst someone on £1m a year pays 0.1% on the same tax? The trouble with the word "fair" is that it usually means "I would pay less".

And if you instead change it to say a 10% local income tax you get another problem. Why should someone on £10k a year pay £1000 whilst someone on £1m pays £100,000 when they use similar services? The trouble with the word "fair" is that is usually means "I would pay less".

 

[PaulStat]

Silly question but where did this borrowed money come from? Usually I'd say the banks, but it's the banks the government was bailing out