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Should VAT be reduced to 15% Watch

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    (Original post by fleky6910)
    No she didn't, I proved this to you , yet you still keep rambling on despite knowing the facts. Thatcher/major cut taxes from 83% to 40%. Are you suggesting we reverse these? Thatcher saved our economy and changed British politics forever .Hollande's 75% tax failed and had worse effects on the poor than the rich as the rich just left, the deficit soared along with unemployment.
    https://www.theguardian.com/world/20...rcent-supertax.
    75% is way too high it should be around 47.5% and 50%
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    (Original post by RedManc)
    75% is way too high it should be around 47.5% and 50%
    So thatcher ruined the country by reforming tax?? But you support lower taxes then her budgets ? makes no sense. The rich already pay enough tax as it is! 45% is too high.
    (John major cut them further )


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    (Original post by fleky6910)
    So thatcher ruined the country by reforming tax?? But you support lower taxes then her budgets ? makes no sense. The rich already pay enough tax as it is! 45% is too high.
    (John major cut them further )


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    I like Brown's tax policies, not Thatchers
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    I think the revenue impact of cutting it against the actual benefit it will have in terms of the price of goods to the consumer really makes cutting it a pretty ineffective trade-off at the moment. I'd be far keener to direct tax cuts elsewhere.

    (Original post by RedManc)
    I do not know why the Government raised it in the first place. During the recession it was 15%
    Doesn't that question really answer itself? It was cut to provide a degree of short-term economic stimulus because the UK was emerging from a recession.
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    (Original post by RedManc)
    I like Brown's tax policies, not Thatchers
    You make 0 sense.
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    (Original post by KingHarold)
    The cut should be more selective. i would prefer energy bills to be zero rated- one of the few good things we could do post Brexit.
    I too agree that energy bills should be devoid of taxation and were it not for electrical vehicles finally taking off i'd also make the same call for transport. We should also 'cut the green crap' on our energy bills too.

    (Original post by ByEeek)
    It was a small matter of the massive deficit the country is running (and has temporarily forgotten about) which is racking up ever more debt. 20% VAT is reasonably comparable with other EU countries and nothing special. Besides, it is only on luxury, non-essential goods (on the whole) and if this Christmas' trading figures have anything to go by, isn't affecting spending at all.
    Economic figures are mostly year on year so the only year you would have seen an impact was 2011 and indeed the economy was pretty weak.
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      (Original post by Sternumator)
      No. VAT is my favourite tax. It doesn't distort markets (much) and you don't realise you are paying it. It doesn't stop people spending money. Nobody factors VAT into their consumption decisions. What are people going to do? Put off buying that TV in case VAT goes down by 5%? They should increase it to 25% over the next few years.

      If it was reduced to 15%, I doubt it would even be noticeable. Businesses are looking for an excuse to raise prices because of cost pressure anyway. I don't think prices would come down at all as a result. I would much rather they make the cut to income tax and then I actually get more money into my bank.
      Actually, I agree - with one or two small caveats:
      • Make it a flat tax at, say 25-27.5%, with no other taxes levied on any purchases, whatever the nature or use of the purchase (this includes the abolition of taxes on alcohol, tobacco, and fuel - which don't discourage people from buying them at all).
      • Issue biometrically-verified VAT exemption cards/certificates to be used by low-income families (instead of issuing rebates, a process which costs more time and effort, and therefore money).

      The thing with tax isn't that we shouldn't have to pay it, it's that we're paying it several times. When I earn my wages, I pay income tax. I then pay tax on the same money when I spend it. In some sense, I'd be tempted to amend my first point and suggest that we either get rid of VAT completely and levy a flat-rate income tax (not possible) or get rid of income tax and have VAT at 30%, flat, across the board.
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      (Original post by Rakas21)
      I too agree that energy bills should be devoid of taxation and were it not for electrical vehicles finally taking off i'd also make the same call for transport. We should also 'cut the green crap' on our energy bills too.



      Economic figures are mostly year on year so the only year you would have seen an impact was 2011 and indeed the economy was pretty weak.
      Eh? Christmas 2016 figures are in now. Government borrowing is published month by month. Osborne introduced higher VAT as part of his austerity package. What has 2011 got to do with anything?
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      (Original post by Tootles)
      Actually, I agree - with one or two small caveats:
      • Make it a flat tax at, say 25-27.5%, with no other taxes levied on any purchases, whatever the nature or use of the purchase (this includes the abolition of taxes on alcohol, tobacco, and fuel - which don't discourage people from buying them at all).
      • Issue biometrically-verified VAT exemption cards/certificates to be used by low-income families (instead of issuing rebates, a process which costs more time and effort, and therefore money).

      The thing with tax isn't that we shouldn't have to pay it, it's that we're paying it several times. When I earn my wages, I pay income tax. I then pay tax on the same money when I spend it. In some sense, I'd be tempted to amend my first point and suggest that we either get rid of VAT completely and levy a flat-rate income tax (not possible) or get rid of income tax and have VAT at 30%, flat, across the board.
      We shouldn't get rid of one or the other. An efficient tax system taxes as widely as possible. If the government needs to raise x amount to do the spending it wants, the thinner you can spread it, the less damage it would does.

      If we had just a flat rate of income tax, you would be talking over 50% which is a real disincentive to work/ declare work. If we just had a sales tax, you would be talking over 50% which would again would create scope for a big black market.

      It is better to do it bit by. As you say, you seemly pay it for doing anything but that is preferable than having it concentrated on a few things.

      There is not chance of getting rid of duties. They are too attractive politically in that they allow the Chancellor to pretend he is doing us a favour when he taxes us.

      No need to mess about with certificates. Its cheaper and easier administratively for business and government to just give low income families more money if that is what you want to do.
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      Vat is a regressive tax and it would be far better for the working and middle class to raise income tax to replace vat


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      (Original post by paul514)
      Vat is a regressive tax and it would be far better for the working and middle class to raise income tax to replace vat


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      what the you think the top rate of income tax should be
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      (Original post by RedManc)
      what the you think the top rate of income tax should be
      Whatever it needs to be to compensate for the loss of revenue from vat.

      I'd like no fuel tax etc too


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      (Original post by RedManc)
      what the you think the top rate of income tax should be
      Depends on the economic climate. Certainly no higher than 40%.
      If the economy is doing well maybe even 30% but we'd have to be doing well ( running a surplus). If we could back to the regan tax rates, if only.
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      (Original post by fleky6910)
      Depends on the economic climate. Certainly no higher than 40%
      and what should be the lowest rate of income tax?
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      (Original post by paul514)
      Whatever it needs to be to compensate for the loss of revenue from vat.

      I'd like no fuel tax etc too


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      what about a rise in income tax
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      (Original post by RedManc)
      and what should be the lowest rate of income tax?
      Personal allowance and then possible 10-15% if the economy is performing . i think 20% is ok right now but it all depends on the economic climate ! I think its important we make work pay. Hence raising the personal allowance is good because it allows working people to keep more money and their taxes should be cut.
      I would love a flat tax but it would NEVER work or at least in the foreseeable future not work.
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      (Original post by fleky6910)
      Personal allowance and then possible 10-15% if the economy is performing. I think its important we make work pay. Hence raising the personal allowance is good because it allows working people to keep more money and their taxes should be cut.
      I would love a flat tax but it would NEVER work or at least in the foreseeable future not work.
      I agree the lowest rate should be around 10%
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      (Original post by RedManc)
      what about a rise in income tax
      Well if you get rid of vat then it would need to rise to make up for the lost revenue, I thought that was clear in my last post.

      Income tax is a headline tax it isn't the true tax that people pay when you factor all sorts of taxes that people pay such as fuel, vat, insurance etc

      They should all go


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      (Original post by paul514)
      Well if you get rid of vat then it would need to rise to make up for the lost revenue, I thought that was clear in my last post.

      Income tax is a headline tax it isn't the true tax that people pay when you factor all sorts of taxes that people pay such as fuel, vat, insurance etc

      They should all go


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      I'm not sure insurance is a tax
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      (Original post by RedManc)
      I'm not sure insurance is a tax
      There is tax on insurance it's something like 10% of what you pay


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