Tories study plans for 20pc VAT

JasonLVC

Whether someone lives in a rural environment is irrelevant to taxation policy.

VAT is a consumption/transactional based tax - collected by the business and paid to the Treasury so it is cheap and effective for a government....VAT is so brilliant that everyone is doing it, Dubai, India shortly and there's talk of the USA doing so if Obama gets a 2nd term.

Tax will always hit some more than others. Income tax hurts those who earn over £x but doesn;t hurt those on benefits. Stamp Duty doesn't affect anyone until they come to BUY a house. Inheritence tax isn't an issue until your relatives die with a b ig wodge of cash.

So the rural folks have to put fuel into their car. So does everyone else who has a car. Some may drive more miles than others, so buy a more efficient car or take the hit on running costs.

At least the Tories are trying to break the news to us gently. They are going to have to increase taxes somehow. They can't squeeze direct taxes anymore as Brown has already bled that stone dry (along with the pension, sale of public assets, etc) and so there's not much left to do other than VAT.

Really2

JasonLVC wrote: »

So the rural folks have to put fuel into their car. So does everyone else who has a car. Some may drive more miles than others, so buy a more efficient car or take the hit on running costs.

To be fair poorer rural folk have no viable alternatives. Unless retired public transport is not an option so costs getting to and from work can be high as a proportion of wages for rural people.
With the young taking the biggest hit.

zappahey

JasonLVC wrote: »

Stamp Duty doesn't affect anyone until they come to sell a house.

Buy a house, surely.

lostinrates

Rochdale_Pioneers wrote: »

You could live or work elsewhere though - its a choice. If you don't eat you die. Thats not a choice - thats why food is VAT free.

I agree with this an an individual: however, if evryone rural takes this personal decision, driven by necessity of cost, we have a problem.

ETA: although I think vat rise is probably a fair tax. re higher percentage of lower income wage...isn't almost everything in life?

JasonLVC

zappahey wrote: »

Buy a house, surely.

Yep, slip of the proverbial tongue. I've amended my previous post!.

JasonLVC

Just announced....Lithuania to increase VAT to 21% from 01 September 2009.

So the cost of a holiday there will be going up soon. Makes the Tory plans that more inevitable.

b0rker

Graham_Devon wrote: »

But just a small point....saving money acheives a lot. Its the path of "saving does nothing" that has got us into the biggest debt mountain we have ever been in and one of the biggest indebted nations in the world, but hey, figures schmigures.

Clearly our debt mountain has gotten us into this mess. What is not so clear is that saving and hoarding is what will get us out if it. I would be surprised if it were the right option for us now. Stimulating growth will be required somehow.