9th Day of Xmas - Taxing Times

Generali

What were the basic and top rates of income tax when Lady Thatcher, then plain old Maggie, was elected in 1979?

Rinoa

33% basic rate, 83% top rate (soak the rich, tax the poor until the pips squeak!)

I think Vat was only 8% though, so we've moved more tax on to spending and less on earnings.


Edited at Generali's request.

Generali

Rinoa wrote: »

I think Vat was only 8% though, so we've moved more tax on to spending and less on earnings.

VAT was 8% on basics and 12.5% on 'luxuries' so yes, taxation has moved to consumption mostly because it's harder to evade or avoid.

I won't comment on whether or not your answer is correct except to say that I encourage people to vote in the poll rather than post their answers. An edit facility is available to you should you choose to use it.

Rinoa

33% basic rate, 83% top rate (soak the rich, tax the poor until the pips squeak!)

Generali wrote: »

VAT was 8% on basics and 12.5% on 'luxuries' so yes, taxation has moved to consumption mostly because it's harder to evade or avoid.

I won't comment on whether or not your answer is correct except to say that I encourage people to vote in the poll rather than post their answers. An edit facility is available to you should you choose to use it.

Edited as requested. Been away from the computer a couple of hours though, so maybe too late.

grizzly1911

Generali wrote: »

VAT was 8% on basics and 12.5% on 'luxuries' so yes, taxation has moved to consumption mostly because it's harder to evade or avoid.

Taxation has been increased and VAT is just one of the ways it has.

The fact that it is harder to evade/avoid just happens to be a bonus.

It may have meant that direct taxes haven't need to increase, by so much, but they haven't reduced either.

I love that fact that loo rolls are subject to VAT , as a "luxury", as are soaps and cleaners.