Leekbrookgull
Well-known member
Have now pay back later. Why not just slash basic rate tax for low and middle income earners ? None of this cut on Vat or more tax credits on kids. Put the POUND back in your pocket.
Some of these !!
Have now pay back later. Why not just slash basic rate tax for low and middle income earners ? None of this cut on Vat or more tax credits on kids. Put the POUND back in your pocket.
Say you earn £15k, a 1% cut in income tax will give £1.73 a week extra in your pocket.
Say you spend £50 a week on petrol/booze and fags a 2½% reducting in VAT will give you £1.25 in your pocket, that's without all the other things you pay VAT on.
Also a VAT reduction benefits everybody not just earners.
Have you scanned and copied those yourself? If so, I believe its actually illegal !
Two questions here please:
1. Should we really be encouraging people to go out and spend/borrow more, when it was exactly that which got us in this mess in the first place?
2. VAT - has the cost of implementing this reduction been thought through - especially as it is only a temporary measure, and will be reversed after a year/18 months?
my concern wit VAT is, how will it be passed on?
If VAT was increased we would expect to see immediate rises on food etc prices.
But will we really be seeing Sid's cafe dropping 2.5% of his sausages and chips?
Sid would see no change in the cost of his food purchased because what he is buying will be zero rated anyway, he will still charge the same but pay less VAT over so he will be more profitable and therefore more likely to spend more of his money on christmas presents.
1. Hopefully will help spending and should not in itself encourage borrowing.
2. Thats a good point, and one that occurred to me, but I suppose with modern tills you can just take off 2.5% at check out and just display one big sign in the shop saying 2.5% off everything. Some places still advertise ex VAT prices. Normally they get up my nose, but for once in a couple of decades they are vindicated.
Two questions here please:
1. Should we really be encouraging people to go out and spend/borrow more, when it was exactly that which got us in this mess in the first place?
hear!hear!hear! rderpaperswavingsmilie:I do however like the idea of a 45% rate for those earning over 150k - they can afford it
Have now pay back later. Why not just slash basic rate tax for low and middle income earners ? None of this cut on Vat or more tax credits on kids. Put the POUND back in your pocket.