Tax!

[goldstone]

20% VAT is unreal.

Why do we need it?

Before VAT was introduced the government managed to squeeze sufficient taxes out of the population through other means.

What has changed that means in addition to income tax and all the other taxes the government needs to charge 20% VAT?

No comprende!

 

[The Antikythera Mechanism]

National debt now £900bn!

see Debt Bombshell

 

[Gritt23]

20% VAT is unreal.

Have you only just noticed?

 

[Westdene Seagull]

20% VAT is unreal.

Why do we need it?

Before VAT was introduced the government managed to squeeze sufficient taxes out of the population through other means.

What has changed that means in addition to income tax and all the other taxes the government needs to charge 20% VAT?

No comprende!

I think you can thank the EU for Britain having VAT !

 

[GOM]

20% VAT is unreal.

Why do we need it?

Before VAT was introduced the government managed to squeeze sufficient taxes out of the population through other means.

What has changed that means in addition to income tax and all the other taxes the government needs to charge 20% VAT?

No comprende!

Purchase tax was a tax in the UK on consumer goods, which was replaced by VAT in 1973.

 

[acrossthepond]

20% VAT is unreal.

Why do we need it?

Before VAT was introduced the government managed to squeeze sufficient taxes out of the population through other means.

What has changed that means in addition to income tax and all the other taxes the government needs to charge 20% VAT?

No comprende!

No politician or political party has the courage to stand up and admit that the way tax and public services are currently structured is insupportable in the long term, because they don't think it will play well with the electorate. So ways will keep being found to squeeze a little more money out of the population through creeping taxation, in the hope of putting off the inevitable. And turning it into someone else's problem.

This means that the problems don't get fixed, and the consequences loom larger. It's my kids, and their kids, that I really worry about.

 

[goldstone]

Personally I think I'd prefer to see less income tax and more tax on purchases, road use etc.

That way at least you get to see more of your salary and it's up to you how you spend it.

On the other hand the stupid TV licence fee should be dropped immediately and the amount added to income tax. The TV licence is NOT an option as every household has a TV. And the cost of administering and enforcing the TV licence must be astronomical.

 

[GT49er]

VAT is a flat rate tax, so it hits the poorest in socirty hardest. We need to find better ways of taxing the rich and better off - a graduated property tax might work. If you've got a £million house, you can afford to hand over a decent wedge - and you can't put a house in a trust fund in the Caymen Islands or wherever!

 

[Stoo82]

VAT is a flat rate tax, so it hits the poorest in socirty hardest. We need to find better ways of taxing the rich and better off - a graduated property tax might work. If you've got a £million house, you can afford to hand over a decent wedge - and you can't put a house in a trust fund in the Caymen Islands or wherever!

VAT is only charge on luxurys. So your poor rich thing is bollox. How many 'poor people' have a playstaion 3 for example?

Rich people pay more tax even if the tax rate is the same as poor people. One they get paid more, tax man gets more, they also spend more, tax man gets more. Why should they get taxed even more?

 

[Lord Bracknell]

Anyone remember the days when graduated scales of income tax went up as far as 83 per cent? AND there was a surcharge of a further 15 per cent on investment income - making the marginal top rate 98 per cent?

Those were "the good old days", of full employment, free education (including student grants) and universally available affordable housing, of course. Terrible times.

 

[GT49er]

Because they're rich and can afford to pay tax, of course! And if you think VAT is only on luxury items you really need to do a bit of research!

 

[Bisto]

I would rather pay 62% VAT and no income tax and no Income tax

 

[sten_super]

Anyone remember the days when graduated scales of income tax went up as far as 83 per cent? AND there was a surcharge of a further 15 per cent on investment income - making the marginal top rate 98 per cent?

Those were "the good old days", of full employment, free education (including student grants) and universally available affordable housing, of course. Terrible times.

In here is the answer to the OP; basically there's been a move away from direct taxation (e.g. income tax) towards indirect taxes (such as VAT).

Because they're rich and can afford to pay tax, of course! And if you think VAT is only on luxury items you really need to do a bit of research!

Of course it depends upon your definition of 'luxury', but the majority of truly essential goods/services are either exempt, zero rated or charged at the lower rate;

Electricity & gas are zero rated. Water is 5%. A lot of food and drink is zero rated. Baby and children's clothing is zero rated.

I don't disagree with the general idea that rich people should pay more tax than poorer people, but that can be achieved without (necessarily) charging ridiculous marginal tax rates, as Stoo82 points out.

 

[seagullsovergrimsby]

Anyone remember the days when graduated scales of income tax went up as far as 83 per cent? AND there was a surcharge of a further 15 per cent on investment income - making the marginal top rate 98 per cent?

Those were "the good old days", of full employment, free education (including student grants) and universally available affordable housing, of course. Terrible times.

I wonder how many people actually paid 83% or 98% ? Many rock stars avoided tax on their royalties by channelling it into a company registered in a tax haven. Company executives used accountants to exploit tax loopholes.

 

[Thunder Bolt]

VAT is only charge on luxurys. So your poor rich thing is bollox. How many 'poor people' have a playstaion 3 for example?

Rich people pay more tax even if the tax rate is the same as poor people. One they get paid more, tax man gets more, they also spend more, tax man gets more. Why should they get taxed even more?

VAT is not only on luxuries. We pay VAT on gas, electricity (albeit a lower rate) fuel, clothes and some foodstuffs.

 

[Dominoid]

Not forgetting Sanitary towels and Tampons, probably the msot controversial VAT rated items.

 

[seagullsovergrimsby]

I thought electricity and gas had a 5% VAT rate , it was reduced from the higher rate but once VAT is imposed it cannot be zero rated again thus the compromise.

 

[Cian]

I thought electricity and gas had a 5% VAT rate , it was reduced from the higher rate but once VAT is imposed it cannot be zero rated again thus the compromise.

Things have been re-zero'ed here so thats not an EU ruling (or not one we've ever paid attention to, possibly...) so should be changeable by the UK govt. Although I'd imagine they rather like the revenue from it!

 

[Billy the Fish]

Not forgetting Sanitary towels and Tampons, probably the msot controversial VAT rated items.

Women could easily do without those luxury items. There's nothing wrong with some screwed up newspaper

 

[Thunder Bolt]

I thought electricity and gas had a 5% VAT rate , it was reduced from the higher rate but once VAT is imposed it cannot be zero rated again thus the compromise.

It was introduced at 5% becuase it was VAT registered in the rest of the EU. If what MYOB has said is correct then pressure should be brought to bear on the government to abolish it here. For poorer families and pensioners, fuel is their biggest expenditure after housing.