VAT cut to 8%!!!

bankhater_1965

Mr._Pricklepants wrote: »

All this sniping and ad-hominem attacks on Mr. Ree, but in the end....he's right, as always.

Of course you base your VAT on net price.

So for all the simpletons on here, here we go again:

30K x 20% = 6K
30K x 8% = 2.4K
Saving: 3.6K

weres your calculations on revenue for growth for increase public spending due to encouragement regards to a decrease in vat duty ?? please publish

MrRee_2

dlk wrote: »

I'm glad you don't own a pound shop Mr Ree, by your logic it would have the very uncatchy name of '83 pence land'

Thick people like some on this thread use PoundLand ..... they need it to be simple for them, they wouldn't understand how to work out percentages .... so it's nice 'n' easy for them, bless.

Buying a car, however ...... the VAT rate makes a lot of difference - one of the reasons it is seperated on the sales invoice.

bankhater_1965

edgex wrote: »

people only spend more if theyve got more money to start with

if they cant afford an item with the current rate of vat, they are unlikely to be able to afford it with a reduced rate in place

those that can afford the item anyway, a reduction wouldnt lead to increased purchasing, theres only so many tv's, cars etc anyone can buy. they might move up the range, but even then the vat take would simply be back at the level you started at.
those that cant afford the items now, the vast majority of their spending is on essentials, which are either exempt, zero rated, or reduced rate, eg food, utilities etc. that spending is not movable to big ticket items.


the only way to get people spending more is to ensure they actually have more money to start with, before they go out to spend it.
thats what raising the income tax threshold does.

of course any reduction in vat would increase spending , because people would have more disposable income

MrRee_2

^^ Which is what we want!! ^^

nicko33

bankhater_1965 wrote: »

of course any reduction in vat would increase spending , because people would have more disposable income

They wouldn't have more money, they'd have the same money but stuff would be cheaper.
They'd be able to buy more stuff, so the money would pass to more other people who could then re-spend it.

But how is that different to the VAT being re-spent by the government? It's still the same money going round and round, just by different routes.

chewmylegoff

MrRee wrote: »

Thick people like some on this thread use PoundLand ..... they need it to be simple for them, they wouldn't understand how to work out percentages .... so it's nice 'n' easy for them, bless.

Buying a car, however ...... the VAT rate makes a lot of difference - one of the reasons it is seperated on the sales invoice.

silly mr ree, must be your dementia kicking in again, VAT is separated out on an invoice because it has to be. as a director of your own company you should probably be aware of the rules. let me help you.

http://www.hmrc.gov.uk/vat/managing/charging/vat-invoices.htm#2

MrRee_2

I own my company, the financial details are left to my Accountant.

chewmylegoff

MrRee wrote: »

I own my company, the financial details are left to my Accountant.

I think I know him; Walter Mitty ACA.

sabretoothtigger

It is the single thing which will get the economy moviing and get people spending.

That £30,000 car will now be £3,600 cheaper!

If we were the people making, designing or owning the car maker then yes but just buying stuff doesnt improve the UK economy or we'd never have had a recession

bankhater_1965

nicko33 wrote: »

They wouldn't have more money, they'd have the same money but stuff would be cheaper.
They'd be able to buy more stuff, so the money would pass to more other people who could then re-spend it.

But how is that different to the VAT being re-spent by the government? It's still the same money going round and round, just by different routes.

if people have more disposable income , they will buy more goods ,this creating demand and creating jobs , creating more income tax creating more wealth for the country , and the loss of reduction in the vat rate would create growth which in turn would make up for the shortfall in reduction of vat , this goverment is undoutably against any growth whatsoever , it hasnt encouraged and will not whilst we have a goverment where every one of its mps is a millionarre, the reduction in income tax for the wealthy is useless when people cannot afford to buy , its gone straight into there pockets whilst they play there tax avoidance schemes whilst slamming the benifit claimers and the lower end of the working class, then voicing there opinions on unfair tax rates at the higher end of the table , a reduction in vat is the only way to kick start the economy and look to export goods further than the euro