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Post by vinny on Jun 27, 2024 9:43:05 GMT
What are your thoughts on VAT?
Keep it / reform it / abolish?
My thoughts? Despite the revenues it provides, I think it's a regressive tax and we should look at ways to reform it.
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Post by AvonCalling on Jun 27, 2024 13:20:11 GMT
I think there is a case for VAT to exist but it has suffered mission creep.
VAT on essentials is obscenely regressive IMO
Two things. IIRC vat used to be a source of income for the EU so post Brexit the government had no excuse not to reduce it.
If you drop VAT how are you going to make up the shortfall
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Steve
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Post by Steve on Jun 27, 2024 16:51:07 GMT
Increase it and use the revenue to end the obscenity of taxing UK employers for daring to give UK people jobs.
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Post by equivocal on Jun 27, 2024 18:24:45 GMT
Increase it and use the revenue to end the obscenity of taxing UK employers for daring to give UK people jobs. Do you have the figures for total employers' NICs and VAT receipts to calculate by how much VAT would need to increase? |
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Post by AvonCalling on Jun 27, 2024 19:17:56 GMT
Increase it and use the revenue to end the obscenity of taxing UK employers for daring to give UK people jobs. You want to increase a regressive tax in a cost of living crisis? Surely you don't mean that. |
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Steve
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Post by Steve on Jun 27, 2024 20:02:00 GMT
Increase it and use the revenue to end the obscenity of taxing UK employers for daring to give UK people jobs. Do you have the figures for total employers' NICs and VAT receipts to calculate by how much VAT would need to increase? I believe it would have to up by a third (ie in effect increase to 30%) by a mix of increasing top rate on 'luxuries' and increase base rate by say 5% www.ukpublicrevenue.co.uk/year_revenue_2024UKbn_17bc1n_3040#ukgs302 |
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Steve
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Post by Steve on Jun 27, 2024 20:04:52 GMT
Increase it and use the revenue to end the obscenity of taxing UK employers for daring to give UK people jobs. You want to increase a regressive tax in a cost of living crisis? Surely you don't mean that. It's not a regressive tax if done right. Poor people don't buy Rolexes do they. Potatoes are VAT free. Making employers pay 13.8% of any decent earnings just encourages employers to take jobs overseas and pay low - that's regressive |
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Post by equivocal on Jun 27, 2024 20:15:21 GMT
Do you have the figures for total employers' NICs and VAT receipts to calculate by how much VAT would need to increase? I believe it would have to up by a third (ie in effect increase to 30%) by a mix of increasing top rate on 'luxuries' and increase base rate by say 5% www.ukpublicrevenue.co.uk/year_revenue_2024UKbn_17bc1n_3040#ukgs302That looks about right, thanks.
I suppose it would give home producers an improved position with respect to imports. I'm not sure if it might, in some cases, act as a disincentive to investment to create improved productivity.
Are there any papers outlining the pros and cons you may have looked at?
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Steve
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Post by Steve on Jun 27, 2024 20:26:33 GMT
No I formed the view years ago when involved in make v buy decisions for my employer.
Sweden (not exactly known as a socialism desert) has VAT at 25%, IIRC it's not the highest.
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Post by equivocal on Jun 27, 2024 21:10:17 GMT
No I formed the view years ago when involved in make v buy decisions for my employer. Sweden (not exactly known as a socialism desert) has VAT at 25%, IIRC it's not the highest. It's certainly not a daft idea and I imagine the bulk of the VAT increase would be absorbed by businesses saving on labour costs.
I can't think through the implications beyond that which I've already posted - it would be nice to read some modelling of expected effects.
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Steve
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Post by Steve on Jun 27, 2024 22:27:27 GMT
Businesses that just import stuff made in the far East would have to raise their prices, businesses that actually employ Brits to make stuff here would be able to reduce prices.
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Post by AvonCalling on Jun 28, 2024 9:27:58 GMT
You want to increase a regressive tax in a cost of living crisis? Surely you don't mean that. It's not a regressive tax if done right. Poor people don't buy Rolexes do they. Potatoes are VAT free. Making employers pay 13.8% of any decent earnings just encourages employers to take jobs overseas and pay low - that's regressive It's not a regressive tax if done right is basically an admission that it us a regressive tax and that us the tax we have which is on heating peoplea homws in winter. Isn't it on tampons too. Not really luxury items. |
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Steve
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Post by Steve on Jun 28, 2024 9:31:04 GMT
No it is not on tampons, do keep up
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Post by AvonCalling on Jun 28, 2024 11:09:37 GMT
No it is not on tampons, do keep up Some of us have lives outside of forums and are able to maintain our civility when people disagree with us and refrain from playground barbs when people don't agree with our sacred cows/hobby horses |
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Post by Zany on Jul 6, 2024 8:26:27 GMT
You want to increase a regressive tax in a cost of living crisis? Surely you don't mean that. It's not a regressive tax if done right. Poor people don't buy Rolexes do they. Potatoes are VAT free. Making employers pay 13.8% of any decent earnings just encourages employers to take jobs overseas and pay low - that's regressive I wish that was true. But far too many ordinary goods attract VAT. That assumes things like Carpets, TV's and Cars are unnecessary luxuries. |
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