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[bucko]

http://news.bbc.co.u...ics/7745340.stm

QUOTE

.VAT cut by 2.5 percentage points
.45% tax rate on earnings over £150,000 from 2011
.All National Insurance to go up by 0.5% from 2011
.Economy to shrink by up to 1.25% next year
.Borrowing to hit record £118bn
.Public spending growth cut to 1.2%
.Phased increase in vehicle excise duty
.£60 Christmas gift for pensioners

So what do people think of the new UK VAT?

I think it's going to help me when I buy my first car soon, should make it a bit cheaper.

[Reaper527]

that still seems really high to me. a 15% tax shouldn't be in addition to a 45% tax on earnings. also, i'm not sure what the tax rates on everything else are, but they are probably much higher than i'm willing to accept, and i'm talking about before the hike your article mentions.

QUOTE

Lib Dem treasury spokesman Vince Cable said VAT cuts would not be enough to boost consumer spending and "it would be much more sensible to put money directly in the pockets of low paid workers by cutting their income tax".

originally wasn't the vat designed to 100% replace the income tax? i know with the fair tax proposals here in the states, a vat would be created, at roughly 23%, and the income tax and capital gains taxes would be eliminated.

[bucko]

QUOTE(Reaper527 @ Nov 26 2008, 10:02 PM)

that still seems really high to me. a 15% tax shouldn't be in addition to a 45% tax on earnings. also, i'm not sure what the tax rates on everything else are, but they are probably much higher than i'm willing to accept, and i'm talking about before the hike your article mentions.
originally wasn't the vat designed to 100% replace the income tax? i know with the fair tax proposals here in the states, a vat would be created, at roughly 23%, and the income tax and capital gains taxes would be eliminated.

17.5% Value Added Tax is the norm if I was to buy something this week it's 17.5%, but I don't think we will see that figure again. 15% for a year then I guess something like 18.5% will be the norm. 45% on earnings is only for high earners I think (a good thing, because most high earners I know do fook all). I fall under the yearly limit on income so I don't have to pay any income tax. . Don't forget about the 2P fuel tax and they already get 60% on that as it is, and also alcohol and cigarette tax will probably be increased. We even get taxed if we are dead, if you live in this country, as the saying goes you are taxed to death .

[lordvader129]

QUOTE(Reaper527 @ Nov 26 2008, 02:02 PM)

originally wasn't the vat designed to 100% replace the income tax? i know with the fair tax proposals here in the states, a vat would be created, at roughly 23%, and the income tax and capital gains taxes would be eliminated.

actually the fair tax proposals ive seen would replace both VAT and income tax with a single tax on the end consumer

[sabbath_dude]

It's a totally pointless move IMO. Dropping the VAT by 2.5% to 15% won't make a difference to anyone except retailers bottom lines. I don't think it's anywhere near enough to boost public spending and definitely won't have any noticeable benefits for those on lower incomes (which was the whole point). It'll just end up with the government losing even more money and the economy getting even worse. And then to go and raise fuel duty!?!, I mean WTF??. So we're going to be paying 52.35p per litre fuel duty and then an extra 15% VAT on top of that!. I think if they had dropped or at least froze fuel duty (something that affects everyones finances whether you drive or not) it might have made a difference.

Just wait for next year when everyone has even less money, unemployment is at record levels and VAT is raised to 20 or above %. Happy days   .

[Reaper527]

QUOTE(lordvader129 @ Nov 27 2008, 12:07 AM)

actually the fair tax proposals ive seen would replace both VAT and income tax with a single tax on the end consumer

we don't have VAT in the us, unless you are talking about state sales tax, which the fair tax wouldn't effect