Time To Lower VAT? Retail Sales Die Off

Masomnia

People might not say that they would spend more because of a VAT cut, but given that a heck of a lot, if not most, people spend everything they have coming in, if stuff's cheaper they will buy more. And that presumably is the same for people who save a set amount and spend the rest. N'est-ce pas?

PaulF81

I bet the big stores would use it as an excuse to increase profit margin; prices wouldnt change and the government would be more out of pocket.


I think we should start a tax on socialists seeing as they are the ones who want all this extra stuff, perhaps they should pay for it?

Wookster

Thrugelmir wrote: »

On these political threads totally Confucius.

"Learning without thought is labour lost; thought without learning is perilous".

We could just change that to labour is lost.

moneyinmypocket

There is plenty of free loaders out there still, if gov really wanted too they could cut spending massively by introducing a few policies

System

moneyinmypocket wrote: »

There is plenty of free loaders out there still, if gov really wanted too they could cut spending massively by introducing a few policies

From past experience the cost of enforcing those policies would probably outweigh the gain from them.

BertieUK

Cutting the VAT will automatically give an incentive to shop especially if you are replacing a large item such as a kitchen, car or extensions to property.

...The company interviewed 2,000 consumers and found that an overwhelming 88% said that the VAT cut had not prompted them to spend more on goods or services...

This figure does not give any idea at all of the real results because no two areas of the population would give the same answers. In all my days on this planet I have never yet been asked to take part in these types of questions.

DecentLivingWage

Yes, when yoiu consider all the consumers who are,by now, needing to fix/upgrade things , after the last few years not spending - there must be such a lot of pent up demand that could help the economy grow! Temp cut in VAT could kick start that.

Generali

BertieUK wrote: »

Cutting the VAT will automatically give an incentive to shop especially if you are replacing a large item such as a kitchen, car or extensions to property.

...The company interviewed 2,000 consumers and found that an overwhelming 88% said that the VAT cut had not prompted them to spend more on goods or services...

This figure does not give any idea at all of the real results because no two areas of the population would give the same answers. In all my days on this planet I have never yet been asked to take part in these types of questions.

If you look on the pollsters websites (e.g. ipsos mori) they have a fair bit of information on how they produce polls.

Each person interviewed for this poll would have been asked the identical set of questions.

I have taken part in several polls and Mrs Generali has sat on a lot of focus groups.

DecentLivingWage

What about if the participants asked were thinking 'it's only a matter of time now, when Labour come back in soon ,they will lower vat,albeit temp - and I will get my new kitchen/ diy stuff etc then? Would add up to a fair bit saved - if they could put up with the wait!

BertieUK

Generali wrote: »

If you look on the pollsters websites (e.g. ipsos mori) they have a fair bit of information on how they produce polls.

Each person interviewed for this poll would have been asked the identical set of questions.

I have taken part in several polls and Mrs Generali has sat on a lot of focus groups.

Thank's for the link...If you have taken part in several polls then you must have been in the right area at the right time:)