New tax bombshell: 20% VAT

[NickFitz]

I still can't work out why The Times presents this as a "bombshell". All sane people know that whoever wins the election is going to raise taxes.

More to the point: when VAT was reduced by 2.5%, everybody was rushing to say that it was a meaningless gesture, as it had such a trivial effect on the cost of things. (I remember the thread here, and will dig it up if necessary.)

Given that so many regarded the effect of the 2.5% reduction in VAT as laughable, in that it only amounted to a couple of pence here and there in their day-to-day expenditure, I presume those same people will be rushing to claim that a 2.5% increase will have a similarly negligible effect on their lives, being once again a matter of a couple of pence here and there.

[Moscow Mule]

Given that so many regarded the effect of the 2.5% reduction in VAT as laughable, in that it only amounted to a couple of pence here and there in their day-to-day expenditure, I presume those same people will be rushing to claim that a 2.5% increase will have a similarly negligible effect on their lives, being once again a matter of a couple of pence here and there.

I agree, but I think many companies will use a VAT increase as a chance to bump prices by more than 2.5%.

[gadgetman]

I have a solution to the lack of manufacturing industry!

Anyone see QI this week? Apparently the US is making a fortune by getting prisoners to do vast quantities of work at a fraction of rates being charged abroad.

The work is complusory or they put you in solitary and they have 1% of their adult male population in prison.

So we lock up more people and get the making stuff, even cheaper than Bob Showaddywaddy and the like can turn out. Bobs your proverbial.

[OwlHoot]

I have a solution to the lack of manufacturing industry!

Anyone see QI this week? Apparently the US is making a fortune by getting prisoners to do vast quantities of work at a fraction of rates being charged abroad.

The work is complusory or they put you in solitary and they have 1% of their adult male population in prison.

So we lock up more people and get the making stuff, even cheaper than Bob Showaddywaddy and the like can turn out. Bobs your proverbial.

Convicts may work for peanuts, but these days they cost a fortune to house and guard and feed. But if they're locked up anyway, they may as well be put to work.

[DieScum]

Given that so many regarded the effect of the 2.5% reduction in VAT as laughable, in that it only amounted to a couple of pence here and there in their day-to-day expenditure, I presume those same people will be rushing to claim that a 2.5% increase will have a similarly negligible effect on their lives, being once again a matter of a couple of pence here and there.

Yep.

I'd be suprised if Labour do it because it would hit the poor disproportionately hard.

[centurian]

I'd be suprised if Labour do it because it would hit the poor disproportionately hard.

You mean like abolishing the 10p tax rate...

[AtW]

So we lock up more people and get the making stuff, even cheaper than Bob Showaddywaddy and the like can turn out. Bobs your proverbial.

Good idea.

Let's start with you - please turn yourself into the nearest Peace Station.

[Paddy]

It's not compulsory to earn money via producing stuff in a factory. For example where I live a lot of money comes into the country from overseas students learning English or studying at the famous university. Sometimes we can benefit from having the English language. As RC pointed out, we could be earning more from tourism, or from scientific advances in say alternative energy. Problem is that a majority of the population (and I'm probably part of this majority) don't have these skills to prosper in these fields. The government (well governments, as the last Tory lot were similar) have been content to see a good proportion of the population drop out of the job market, and indeed encourage incomers from elsewhere to take up any perceived slack. At some point there's going to be a breaking point I fear.

Nearly ever Johnny Foreign country has universities teaching in English