More tax inevitable, surely soon?

  john bunyan 16:05 14 Feb 2017
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Answered

With the National debt at £1.7 trillion and rising, the NHS and other public services under pressure, longevity etc, surely we must face higher taxation? Labour promise more spending via borrowing, the Torys talk of efficiency savings, but no one seems to state the obvious- higher tax and NI. The Brexit savings are far away and illusory so something must be done, surely?

  x123 16:28 14 Feb 2017
Answer

john bunyan

I agree with what you say. We as a nation have decided our course and we must pay for it. Also a rise in vat to between 22-25%.

  wee eddie 17:15 14 Feb 2017

One Point: Once we are out of the EU, there will no longer be a requirement for a unified VAT Rate and/or the retention of historic, variable, VAT Rates

  Quickbeam 17:16 14 Feb 2017

Brexit savings...? Not in my lifetime I fear.

  john bunyan 17:18 14 Feb 2017

Vat hits everyone; income tax , with a higher tax threshold, seems a fairer way, plus higher NI

  x123 17:21 14 Feb 2017

wee eddie

Will we revert back to good old purchase tax?

  wee eddie 17:38 14 Feb 2017

Having worked with both, I would say that VAT is infinitely simpler to operate.

VAT does not have to be universal, for example, there is no VAT on basic Foodstuffs.

John, for example, it can be levied at a higher rate on luxury goods, for example, Vehicles with an engine capacity of over 1.5. litres could have VAT at 25%, those over a litre at 20% and those below a litre could be 10%. Or it could be levied on a basis of the vehicles BHP

  bumpkin 18:22 14 Feb 2017

Vehicles with an engine capacity of over 1.5. litres could have VAT at 25%

An interesting suggestion but not without its ramifications.

  Quickbeam 18:23 14 Feb 2017

Any income tax increase will go against the sitting government's election manifesto commitments, and cost votes in the next election which will be very unpredictable.

  bumpkin 18:25 14 Feb 2017

Vat hits everyone; income tax , with a higher tax threshold, seems a fairer way, plus higher NI

I tend to agree with that solution whether we like it or not.

  john bunyan 18:40 14 Feb 2017

QB

Yes, but the situation is dire. They could blame the need for NHS increases, and with Labour at about 25% in the polls there may not be a better time to do it. No one wants tax rises but we can't go on saddling our grandchildren with our debts

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