It is time to cut VAT.

VAT is a tax on what we spend.  Everybody has to pay VAT at the same rate, rich and poor alike.  The following chart shows which parties have changed the basic rate of VAT since its introduction by the Conservative government on 1973.

VAT rate changes

Increasing VAT puts a bigger burden on the poor than the rich, as shown by the following analysis of the most recent VAT risk from 17.5% to 20%:

Reducing the rate of VAT will ease life for the less well off, increase sales, increase business activity and lead to higher employment.  That will increase income and corporation tax revenues and reduce the cost benefit payments as there will be less people out of work.

It is time to cut VAT, not to consider increasing it.

About Minimalist Christian

Phil Hemsley is a graduate of the University of Cambridge, and a Fellow of the Institution of Mechanical Engineers in the UK. He works for a multinational company in the power industry, has presented technical papers at international conferences and holds many patents. He has published two books, the most recent is "The Big Picture, an Honest Examination of God Science and Purpose". He has lived on both sides of the faith fence. He is married, with two daughters.
This entry was posted in politics, Rainbow Economy and tagged , , , , , , , , , . Bookmark the permalink.

Please leave a reply and I will try to get back to you.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s