People don't look at tax cuts right Watch
Well it does, but its a quarter of the standard rate.
I'd have thought with extra income you'd be a better consumer, attracting more standard rated VAT goods.
Buying that 60" TV and all that.
Well remember that the figures I gave only include the top and bottom fifths. The middle 3 fifths could well be paying more than either of them.
NI is a much more regressive tax IMHO and has for council tax...
Yep. I agree. VAT disproportionately detriments the poor yet they seem unaware of this.
Most economists agree that sales taxes are more efficient than income tax, because they cause less market distortion.
That being said neither Labour nor the Tories are remotely ambitious enough to radically overhaul the tax system so a freeze at 20% for the next parliament is the next best thing as there's still cuts that can be made elsewhere.