[Politics] VAT

[DumLum]

Surely we should keep it?

 

[wellquickwoody]

Surely we should keep it?

But if it could be made simpler............

 

[dejavuatbtn]

Why? What’s wrong with some other form of purchase tax?

 

[Tom Bombadil]

Why? What’s wrong with some other form of purchase tax?

It's a regressive tax,

 

[Beach Hut]

What about like the USA and have county sales tax

 

[Bakero]

If the revenue could be raised in another, fairer way, why not scrap it?

 

[BensGrandad]

If it was scrapped another tax would be brought in to cover the money lost so does it matter what it is called VAT, Purchase Tax or whatever.

 

[studio150]

The Telegraph certainly kept up their pro Brexit stance with the headline of VAT to be scrapped post Brexit, when all has really been suggested is a lower rate of tax on goods and services to offset the import duties from a WTO leave.

But of course VAT is associated with the EU, but a tax is a tax regardless of where it comes from.

 

[Bakero]

If it was scrapped another tax would be brought in to cover the money lost so does it matter what it is called VAT, Purchase Tax or whatever.

What if the revenue was recouped with a financial transaction tax?

 

[Dick Swiveller]

Depending on the changes, there are potentially huge costs to businesses having to update software/accountancy systems to deal with any changes.

 

[Knocky's Nose]

It's all wind and piss, smoke and mirrors, and magic cups at Paul Daniel's Bunco Booth. If the Government change a tax, it will only benefit them in some way. In this case, it may be just to win votes - but no matter what happens we won't be 'better off'.

Governments need tax revenues. They will always get them from us, just in different and ingenious ways - and if they can do it whilst making us think we're winning, then more fool us.

 

[wellquickwoody]

If the revenue could be raised in another, fairer way, why not scrap it?

How can a tax which is based upon how much you spend, excluding food & kids clothes etc, be made any fairer?

 

[DumLum]

It's all wind and piss, smoke and mirrors, and magic cups at Paul Daniel's Bunco Booth. If the Government change a tax, it will only benefit them in some way. In this case, it may be just to win votes - but no matter what happens we won't be 'better off'.

Governments need tax revenues. They will always get them from us, just in different and ingenious ways - and if they can do it whilst making us think we're winning, then more fool us.

Exactly. It's a vote winner but I think it would only benefit the rich.
Will this sales tax still be zero rated on children's clothes and food?

 

[DumLum]

How can a tax which is based upon how much you spend, excluding food & kids clothes etc, be made any fairer?

You beat me to it.

 

[Bakero]

How can a tax which is based upon how much you spend, excluding food & kids clothes etc, be made any fairer?

I didn't suggest it could.

 

[trueblue]

How can a tax which is based upon how much you spend, excluding food & kids clothes etc, be made any fairer?

VAT is a regressive tax as the price of an item impacts more heavily on people who earn less. Income tax is a progressive tax and fairer. Sadly most people don't seem to get that and whine if someone suggests putting it up by a couple of pence in the pound.

 

[DumLum]

VAT is a regressive tax as the price of an item impacts more heavily on people who earn less. Income tax is a progressive tax and fairer. Sadly most people don't seem to get that and whine if someone suggests putting it up by a couple of pence in the pound.

I can't see the financial black hole being filled by a rise in income tax whilst the Conservatives are in power?

 

[dejavuatbtn]

VAT is a regressive tax as the price of an item impacts more heavily on people who earn less. Income tax is a progressive tax and fairer. Sadly most people don't seem to get that and whine if someone suggests putting it up by a couple of pence in the pound.

Generally people can’t get out of paying tax on products, whereas avoiding income tax seems to be a hobby in this country.

 

[dejavuatbtn]

Exactly. It's a vote winner but I think it would only benefit the rich.
Will this sales tax still be zero rated on children's clothes and food?

I think the point is that we would have control of our own taxes (rates and when to charge), rather than compliant with someone else’s rules.

 

[Neville's Breakfast]

How can a tax which is based upon how much you spend, excluding food & kids clothes etc, be made any fairer?

Poorer people spend a greater proportion of their income than they save. Therefore VAT is a regressive and unfair tax.