4 Jan 2011

The VAT man cometh

VAT goes up today. Whilst the government must increase its revenue, this doesn't seem like a very sensible way to do it.

The parties that are bringing in this VAT increase are the same ones that condemned the idea less than a year ago, as being unfair. If you're going to raise taxes, do it fairly. Green ideas include: clamp down on tax avoidance and evasion, end the public subsidy for airlines, tax un-earned income at the same rate as earned income, and lower the 50% tax band to incomes over £100,000.

1 comment:

Troughton said...

Yes, the government must increase revenue, and I agree with every one of the 'green ideas' listed. However 20% is an easier number to work with than 17.5%, and the price increase caused by the change is only 2.13%, which is not huge. Perhaps most importantly, VAT is a tax on spending, which should have the effect of slowing the economy, and as we know, economic growth is the greatest environmental peril of all.