Should VAT be reduced to 15%

A cut in VAT would make products cheaper, and it will encourage people to spend more money.

Yes the VAT should definitely go down.

Even the U.S.A, one of the most powerful countries in the world, do not even charge a VAT rate as high as 20%.

I do not know why the Government raised it in the first place. During the recession it was 15%

I know right! This is what really pisses me off about this country,

Everything here is so so expensive. The houses, the bills, the shopping - its all so expensive yet our US counterparts or even Australian counterparts get it way cheaper.

Recently went to Tommy Hilfigers outlet store in the states and got a polo and a shirt for around $80 USD. Is about £50 which is really cheap. Would get a slap if I asked for the same prices from an outlet store here

Agreed, although, I think the reason to why everything is so expensive is because of EU red tape

Yeah that - but I think by reducing the VAT by 5% - there would at least be some hope of the prices being slightly cheaper.

We are not living in a very hard-hit country. We have a VERY DIVERSE population and the economy is good here. Just think the government are being greedy here :P

Yes the VAT should definitely go down.

Even the U.S.A, one of the most powerful countries in the world, do not even charge a VAT rate as high as 20%.

I do not know why the Government raised it in the first place. During the recession it was 15%

Agreed, although, I think the reason to why everything is so expensive is because of EU red tape

The answer to this question is Yes for a number of reasons..

1) As a tax on consumption it is a tax on growth (even if not much).
2) By increasing prices it reduces the number of jobs created (lower prices increase consumption, consumption creates jobs)

The only real caveats are..

1) Taxing consumption is a very easy way to generate large tax revenues with a small cost to jobs and growth
2) In less competitive markets the benefit may not be passed to the consumer



Most public services in the UK are better to be fair and certainly more inclusive. The US also accounts for this by having higher taxation in other areas like corporation tax.



Government raised it because Osbourne was somewhat illiterate until he listened to the Lib Dems in 2012 and because with a deficit of 10%+ GDP, he needed to increase tax revenues significantly as fast as possible.



I voted Leave but this is simply not true. Indeed your also assuming we won't keep most of the regulation (we will).

Our domestic governments (both Labour and Tory) have done more to increase the cost of living than the EU has.

It would be great if VAT was reduced to 15% and an increase on the top rate of income tax to between 47.5% and 50%

The top rate is 47% (don't forget the stealth tax - National Insurance).

Instead of punishing success by increasing taxation i'd aim for a fiscally neutral tax reform by lowering the 45% threshold to £60-100k and then use that revenue to reduce VAT.

I agree, however, I think tax should be reformed completely.

Agreed. To do so would be time consuming, complicated and not for several years electorally rewarding if at all though.

Hence why so few politicians have the stomach for huge tax reform.

Agreed. To do so would be time consuming, complicated and not for several years electorally rewarding if at all though.

Hence why so few politicians have the stomach for huge tax reform.

I do not know why the Government raised it in the first place. During the recession it was 15%

The only politician who has done was Thatcher and she ruined the country