Rumour VAT 20% ??? « Singletrack Forum

Chat Forum

[closed]

Rumour VAT 20% ???

80 posts & 42 voices | Started 2 years ago by zaskar | Latest reply from aracer

Tags:

No tags yet.

Pages: « Previous 123 Next »

hitman - Member

I got to this post and then stopped reading!!:

Irrespective of your political persuasion it would be very difficult to argue that VAT was regressive, as it allows people to avid the tax by limiting spending, whereas income tax/NI gives Zero choice to avoid any tax. As for it having less effect on the rich, it has the same effect on everyone it's just that some people have more money than others...a fact that people don't like but is inevitable.......

and then couldn't avoid reading this gem just as I posted!!:

The VAT on fuel (and the VAT on fuel duty) puts the price of fuel up, which puts up the price of pretty much everything; food included.

The Government need to ditch the Bank of England. Stop borrowing money and print it for ourselves.

Posted 2 years ago #
porterclough - Member

I couldn't help noticing that none of the three main parties, Labour included, took the opportunity to say they wouldn't raise VAT when given the opportunity during the election.

Are we really going to have 5 years of Labour complaining about all the things that they would have had to have done anyway if they'd won the election?

Oh, of course. Silly me of to expect anything different.

Posted 2 years ago #
tiger_roach - Member

Printing money increases inflation, not sure we want more inflationary pressures now - interest rates could get nasty.

Posted 2 years ago #
buzz-lightyear - Member

Poor grannies on fixed pensions don't benefit from income tax allowances, but are made poorer by VAT rises.

How is this fair?

Posted 2 years ago #
project - Member

Lets just put VAT on each pound coin so each coin now costs £1.17.5 pence, see easy.

Posted 2 years ago #
mastiles_fanylion - Member

Why not? I could invest in a good colour copier and it would pay for itself in the first hour, then it's all profit, profit, profit!

Posted 2 years ago #
ebygomm - Member

its (mainly) luxuries that are VATable

Yeah, women's sanitary products, such a luxury

(I suppose it's one thing that it's a reduced rate, so only a little luxurious?!)

Posted 2 years ago #
porterclough - Member

not sure we want more inflationary pressures now

Actually, a spot of inflation can work wonders if you have a large debt you can't afford to pay off. 10 years of 5% inflation and suddenly it doesn't look so scary.

I believe that we have to call printing money "quantitative easing" nowadays.

Posted 2 years ago #
andrewh - Member

andytherocketeer - Member

Someone please tell me what country has raised VAT recently in this downturn.

Erm the UK did... from 15% back to 17.5%

And Greece just has.

not sure we want more inflationary pressures now

Actually, a spot of inflation can work wonders if you have a large debt you can't afford to pay off. 10 years of 5% inflation and suddenly it doesn't look so scary.

I believe that we have to call printing money "quantitative easing" nowadays

Just look at Zimbabwe, a whole country full of billionaires.

Posted 2 years ago #
porterclough - Member

Just look at Zimbabwe, a whole country full of billionaires.

Well there's a difference between 5% and an estimated 50 million % to be fair.

Posted 2 years ago #
TandemJeremy - Member

It was a part of the "Thatcher economic miracle" IIRC - run up the debt paying all those millions to do nothing then let inflation devalue the debt.

Posted 2 years ago #
ernie_lynch - Member

porterclough - Member

Are we really going to have 5 years of Labour complaining about all the things that they would have had to have done anyway if they'd won the election?

Oh, of course. Silly me of to expect anything different.

I've just checked, and I can't see that the shadow chancellor Alistair Darling, has said anything at all about possible VAT increases.

What are you on about ?

Posted 2 years ago #
andrewh - Member

There is indeed. [EDIT] 3 posts up!

But to return to your original point remember that if relying on inflation to wipe out a debt interest rates will tend to be higher to try to keep the inflation under control and it may not reduce as quickly as one was expecting.

Posted 2 years ago #
Burls72 - Member

Jeremy Vine on radio2 was discussing this the other day and I was suprised to hear what doesn't have vat on it. As previously mentioned helicopters and art, collectable gold coins, super yachts. All items bought by your average person!

Posted 2 years ago #
porterclough - Member

TJ pressed the "Thatcher's fault" button!

Who had that post number in the sweep?

Posted 2 years ago #
igm - Member

Didn't Thatcher copy Pinochet's economic policies? That was why she was so defensive of him when he came to Britain a few years ago.

Posted 2 years ago #
ernie_lynch - Member

I believe that we have to call printing money "quantitative easing" nowadays

Just look at Zimbabwe, a whole country full of billionaires.

The term "quantitative easing" originates from Japan - not Zimbabwe.

Posted 2 years ago #
andrewh - Member

Didn't Thatcher copy Pinochet's economic policies? That was why she was so defensive of him when he came to Britain a few years ago.

I thought that was because he was reasonably helpful during the Falklands war. More so than our American friends anyway.

The term "quantitative easing" originates from Japan - not Zimbabwe.

And the Japanese have no problems at all with hyper-inflation.

Posted 2 years ago #
ernie_lynch - Member

porterclough - Member

TJ pressed the "Thatcher's fault" button!

Who had that post number in the sweep?

I mentioned her first.

Posted 2 years ago #
porterclough - Member

I mentioned her first.

That's 'cos you lurrrve her.

Posted 2 years ago #
ernie_lynch - Member

And the Japanese have no problems at all with hyper-inflation.

No, deflation .......hence "quantitative easing".

Posted 2 years ago #
coffeeking - Member

Did anyone notice anything get cheaper when it was at 15%? I didn't. Can't see that I'll notice much difference at 20%.

Posted 2 years ago #
andrewh - Member

Did anyone notice anything get cheaper when it was at 15%? I didn't. Can't see that I'll notice much difference at 20%.

Not even petrol. They put the duty up to compensate, but forgot to reduce it again when VAT went back to 17.5%, and of course one pays VAT on duty for some bizzare reason.

Example, cost 40p, duty 60p price inlcuding VAT = 117.50p
Duty rises 5p
Cost 40p, duty 65p, price including VAT = 123.375p
5p duty increase has pushed price up nearly 6p

(figures are for illustrative purposes only)

Posted 2 years ago #
aracer - Member

The VAT on fuel (and the VAT on fuel duty) puts the price of fuel up, which puts up the price of pretty much everything; food included.

Well it would do if it wasn't for the fact companies can reclaim VAT on fuel, hence in reality it should make no difference at all.

Posted 2 years ago #
grumm - Member

Did anyone notice anything get cheaper when it was at 15%? I didn't. Can't see that I'll notice much difference at 20%.

For once I agree with coffeeking

Everyone whined that the cut to 15% would make no difference, so I don't see how this will make much difference either.

Posted 2 years ago #
aracer - Member

Except that companies will doubtless use it as an excuse to whack prices up by 5%

In reality of course, the price of imported goods (which is surely most of what we pay VAT on, isn't it?) is far more affected by the exchange rate than the VAT rate. Signs of a commitment to reduce the deficit could improve exchange rates by more than 2.5%.

Posted 2 years ago #
FunkyDunc - Member

"Well done for voting Conservatives-bike bits will go up in price again..."

Hold on is it not the labour government who got the country in to this mess in the first place?

Both times when labour have been in power recently they have left huge deficits

Posted 2 years ago #
PJM1974 - Member

The Conservatives have been in power 8 days.

You'd think they'd brought the country to rack and ruin in that short time.

Posted 2 years ago #
grumm - Member

Both times when labour have been in power recently they have left huge deficits

And what deficit did the Tories leave last time they were in power?

Posted 2 years ago #
Junkyard - Member

was it a defecit of morals last time?
In fairness global events did for the economy what the govt did either helped or hindered this. The same will be true for this government. they are not responsible for the debt but they are for what they do to try to lower it whilst not ruining the recovery/making it worse.

Posted 2 years ago #
TandemJeremy - Member

Be prepared for vat to be applied to stuff that is currently exempt as well

Inflation will rise and then interest rates will rise and then we will return to recession - that will be much deeper and more unpleasant then before

Posted 2 years ago #
PJM1974 - Member

I didn't want the Tories in power, but I'd rather seem them in the job than the spending, lying, spinning, warmongering, privacy eroding wunch of bankers who were in office a fortnight ago.

New Labour really were that bad.

Posted 2 years ago #
aracer - Member

Inflation will rise and then interest rates will rise

Well they're both inevitable anyway. I mean RPI is up to 5.3% for April (when Labour were still in charge). If we do get a double dip it will be just because Labour have shoved lots of stuff to the right in an attempt to keep things vaguely OK before the election.

Posted 2 years ago #
TandemJeremy - Member

aracer - but the tory cuts will make it worse - much worse.

However its all a bit academic as its this lot we have - just hope the lib dems can moderate the worst of the excesses. Bloody Osbourne - I bet he makes Lamont look good. He is such a lightweight

Posted 2 years ago #
theboatman - Member

but I'd rather seem them in the job than the spending, lying, spinning, warmongering, privacy eroding wunch of bankers who were in office a fortnight ago.

To be fair, I think all you will notice is the colour of the rosette has changed, well minus the spending bit.

Posted 2 years ago #