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January 05, 2011

Comments

michael mcgough

Hit is possibly the wrong choice of word.Clearly if the rich spend more then they'll pay more VAT but with probably limited impact.A poor family will be affected by whatever they spend that is vatable.Only the likes of Gideon and Dave would'nt inddeed could'nt understand this.

Andy T Cullions

I have never understood Labour's argument on this, if you are on job seekers allowance for instance you purchase very few things with VAT on it. You do not pay VAT on food, certain types of energy or certain services like prescription's which are exempt of VAT (If you are on the dole or over a certain age you are exempt from payment anyway).

As a poor person myself relient on job seekers allowance after becoming a victim of Labour's recession - I cannot see this VAT increase making much impact on me, I think Labour are chasing a phantom on this one and from my point of view as a job seeker it is preferable to have lower taxes on job creation such as NI than lower rates of VAT for things I do not buy. Indeed, If Labour are so worried about the effect on the economy surely they should be pushing for greater public spending cuts so VAT and other taxes can be reduced instead of being wasted on the feather bedded public sector employees who have never had it so good with their gold plated pensions, payrises through the worst downtown since the great deppresion etc.

john parkes

I believe the views above give a true reflection of the impact of VAT. I believe also that Labour are missing a trick here because they are trying to show that something is true when it manifestly is not. But then Miliband got himself into such a muddle over his trying th define `the squeezed middle` that I begin to wonder if he has become so fixated on sound-bite, quick-fix political sloganizing that he neglects to realize the electorate is brighter than he thinks. Indeed at this rate we shall start believing the electorate is brighter than Miliband.

jack c

Its not just Labour that said a VAT rise would hit the poorest the hardest. Cameron said it before the election.

Rabyrover

Most families benefited from Brown, Balls and Milliband's incontinence. Most will suffer to cure it.

A Public Sector Worker

"other taxes can be reduced instead of being wasted on the feather bedded public sector employees who have never had it so good with their gold plated pensions, payrises through the worst downtown since the great deppresion etc."

Andy, who exactly are you referring to here? It certainly isn't your average public sector worker.

Martin Marprelate- A Man in the Street!

I thought this was a trick question at first. Obviously the poor and those on a fixed incomes such as OAPs will suffer far more from this regressive tax called VAT than the well paid and rich. One cannot always buy furniture, electrical appliances etc second hand and sometimes it wold be unwise to do so for safety's sake.

BTW unless things have changed greatly since I was unemployed in the early 1990s, prescriptions are only free if one is claiming Income Support and not Jobseekers Allowance. I was on the Dole, needed prescription medicines then but had to pay the full whack for my prescriptions.

dorsetdumpling

Another Labour distortion/misrepresentation exposed.

Victor Southern

I have been stating this, which is fairly simple maths applied logically, since the argument began. I pointed out on several blogs that the IFS tables were mathematically flawed - not to mention impossible - in the most obvious way. It ain't rocket science. The Taxpayers Alliance also published a chart which was risible.

What is dismaying is the lack of coherent response by the Conservative leaders to Labour's incessant accusations. Surely there must be amongst Tory MPs some who are numerate enough to understand the maths and literate enough to phrase their findings so that the drip feed of Labour disinformation can be countered?

abelard

why did Cameron peddle this lie in 2009?

DaveK

In my view it is clear that a poor person will be worse off.

Having thoroughly read the hmrc vat lists it does seem that if you are poor and live in a healthy manner (cooking your own food instead of takeaway) that all you will purchase are VAT free goods.

Unfortunately all these goods have to be delivered to the point of sale. How much of the fuel increases do you think will be passed on to the customer?

Polatlı

Good post. I like to read your posts. well written. thank you.

remotecontrolscarsGuy

A public sector worker
"Andy, who exactly are you referring to here? It certainly isn't your average public sector worker."

I agree with Andy. Maybe not you exactly, but there is a lot of dead weight in the public sector. We do need to cut them back, and let them go find jobs in the private sector. There way too many. Government needs to trim down and get its house in order like we do in the private sector.

Rob

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