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scrapping VAT is good idea despite being touted by Gove

Discussion in 'Personal' started by afterdark, Jun 9, 2019.

  1. afterdark

    afterdark Lead commenter

    I think the scapping of VAT would be a good idea.

    In terms of the bigger picture.

    We got along fine when it was less than 5% and on far fewer goods and services.

    In terms of the bigger picture rather than the revenue it alone brings in, it one of the most negative forms of taxation we could have.

    https://www.investopedia.com/terms/v/valueaddedtax.asp

    The rich have had their tax cuts, about time the poorer member of society had their tax break.

    However the Tory party clearly don't want this so they have got self confessed coke-head Gove to tout it.
     
    towncryer likes this.
  2. dunnocks

    dunnocks Star commenter

    I think it is a terrible idea.

    Being taxed directly on what you choose to buy as a luxury is about the fairest a tax can be, in my opinion
     
  3. blazer

    blazer Star commenter

    VAT is a consumer tax. Those that consume more pay more. Many of the things poorer people spend a large proportion of their income on are VAT free. In those terms it is possibly the fairest tax we have. Perhaps we need to close the ways people get around paying it.
     
    knitone, border_walker and eljefeb90 like this.
  4. eljefeb90

    eljefeb90 Senior commenter

    How do you propose to fill the huge hole in public finances ? Public services are down to their bare bones as it is and need a decade or more of sustained investment. Yet the Tories propose more tax cuts...
     
    phlogiston likes this.
  5. MrMedia

    MrMedia Star commenter

    Yes, rather than remove VAT, if you have all this money to spare can we spend it on decent joined up public services. There are of course a few pressing problems.

    Social services not coping with case loads.
    Care for the elderly slashed backing up beds on the nhs.
    Young people stabbing each other and the whole county lines stuff.
    Police forces unable to prevent or deal with specific crimes.
    Those in abject poverty being made to go five weeks without any money when they are switched to a new benefit.
    Food bank usage and homelessness at record highs.

    I’d rather money be spent tackling those sort of issues than handed back to people like me.
     
    phlogiston and blazer like this.
  6. LondonCanary

    LondonCanary Lead commenter

    You won't be getting anything back. The proposal is to scrap VAT and replace it with a sales tax.
     
    needabreak and artboyusa like this.
  7. lanokia

    lanokia Star commenter

    In my (limited) experience...

    Replacing an existing tax with a "New, simpler" tax is usually a good disguise for raising those taxes.

    On a side note... is there a reason Income Tax and National Insurance are separate? Could they not be merged and if that was done would it save an administrative costs?
     
    phlogiston and Burndenpark like this.
  8. lanokia

    lanokia Star commenter

    Also... like the inclusion of "cokehead" in the tags...

    Explains so much about his time as Education Minister.
     
  9. afterdark

    afterdark Lead commenter

    But VAT is not just on luxuries is it?
     
  10. Ivartheboneless

    Ivartheboneless Star commenter

    They will not "merge" NI and tax because people at the bottom end of taxation will realise just how much tax they pay in this manner. VAT replaced something called "purchase tax" but I don't know anything about how that was applied and on what goods. Some smartypants will enlighten us I'm sure. VAT certainly needs revision because some things VAT rated are ridiculous (like women's sanitary products).
     
  11. MrMedia

    MrMedia Star commenter

    So the redistribution of tax be a conservative can only be in one direction...
     
  12. LondonCanary

    LondonCanary Lead commenter

    Not as it stands because, for example
    NI is paid by employers as well as employees.
    NI has an upper earning limit after which no more is paid.
    People over retirement age don't pay NI.
    NI contributions determine eligibility for various benefits.​
     
    needabreak, Burndenpark and lanokia like this.
  13. LondonCanary

    LondonCanary Lead commenter

    The EU has agreed an exception that the UK can zero rate them but it won't come into effect until 2022.
     
  14. florian gassmann

    florian gassmann Star commenter

    At the risk of being a smartypants, I can clearly remember Purchase Tax: 50% on pop records as they were considered a luxury, as was a free-standing record rack (also 50%), unless it was made of wood, in which case the purchase tax was 5% (the latter being rated as furniture, which was regarded as only a minor luxury).

    VAT at 10% (later 8%) was a blessed relief.
     
  15. lanokia

    lanokia Star commenter

    Cheers... always wondered...
     
  16. afterdark

    afterdark Lead commenter

    It used to be. Now it is also levied on huge range of things from home improvements to hot takeaway food.
     
  17. afterdark

    afterdark Lead commenter

    In exactly the same way the huge cuts to corporation tax have been. Also in the way that government has failed to tax online retailers selling in the UK. Also in same way that 100's of billions in tax revenues each year are not collected or lost to tax avoidance.

    Tax breaks only a problem when the poor are the benficiary.
     
  18. LondonCanary

    LondonCanary Lead commenter

    Thet are still purchased by consumers. VAT is mandatory throughout the EU which sets the framework regulation.
    Scrapping VAT will not be a tax break when you will get a sales tax instead.
     
    needabreak and Burndenpark like this.
  19. afterdark

    afterdark Lead commenter

    Hidden in there is a way forward. If the country removed the upper limit on NI for employers that would help pay for the NHS and pensions. That is supposed to be the purpose of NI.
     
    eljefeb90 likes this.
  20. blazer

    blazer Star commenter

    Or November 2019?
     

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