Cameron refuses point blank to rule out VAT increase

[taxman]

After being asked numerous times by Jeremy Paxman tonight David Cameron still refused to guarantee that the Tories would not raise VAT.

 

Pressed whether or not he would even raise it in the first budget (which could be 6 weeks away) he still refused to guarantee he wouldn't raise VAT.

 

 

So I think we can take it as read that he'll be raising VAT as soon as he gets in.

 

A tax on spending rather than Labour's tax on jobs.

 

Talk about a rock and a hard place.

[Stormy]

From his refusal to rule something out how can you deduce that he'll "raise it as soon as he gets in?" Or is this just another silly, paranoid anti-tory thread?

 

At least he will reverse Labours imminent NI tax rise.

 

What taxes do you think should rise? Or if none at all, how do we deal with the national debt?

[Vague_Boy]

A rise in VAT is looming whichever party wins the general election, as Labour and the Conservatives draw up plans to balance Britain’s books.

 

Alistair Darling and George Osborne, the Shadow Chancellor, are both considering raising VAT to as high as 20 per cent — the European average — from the current rate of 17.5 per cent, The Times has learnt.

Link

 

Red and Blue, Left and Right, Labour and Conservatives, when will people learn that in modern British politics, THERE IS NO DIFFERENCE.

[iansheff]

The raise in N.I. is something the employers don't want because it means their shareholders will lose some dividend. M & S would pay about £10 million pound extra, they made over £360 Million pounds in this country alone last year. I know not all companies make this amount of profit but all the big companies care about is profit and their shareholders. If vat does go up it will hit everyone including those that can least afford it the pensioners and unemployed, don't forget if vat does go up it will probably put petrol up as well, which if it goes to 20% would add approx another 3p a litre.

[SHYTOT]

The raise in N.I. is something the employers don't want because it means their shareholders will lose some dividend. M & S would pay about £10 million pound extra, they made over £360 Million pounds in this country alone last year. I know not all companies make this amount of profit but all the big companies care about is profit and their shareholders. If vat does go up it will hit everyone including those that can least afford it the pensioners and unemployed, don't forget if vat does go up it will probably put petrol up as well, which if it goes to 20% would add approx another 3p a litre.

 

NI would also affect British Airways who have already lost more than £50 million this year. A rise in NI is just what they need to tip them over the edge.

[mj.scuba]

He also failed to rule out nationalising my house and selling me to the Chinese for body parts, I'm a bit worried now.

[plekhanov]

He also failed to rule out nationalising my house and selling me to the Chinese for body parts, I'm a bit worried now.

Oh come on, you know that Cameron's refusal to rule out a VAT rise even in the immediate future when repeatedly pushed to do so is of significance.

 

Especially given his party's history of shifting from direct to indirect taxes which of course disproportionately hit the less well off. Last time they were in power the Tories introduced the single rate of VAT at 15% and then later raised it to 17.5%. Cameron raising VAT would fit right in with his party's history and with his other known taxation policies which are anything but progressive.

[taxman]

From his refusal to rule something out how can you deduce that he'll "raise it as soon as he gets in?" Or is this just another silly, paranoid anti-tory thread?

 

At least he will reverse Labours imminent NI tax rise.

 

What taxes do you think should rise? Or if none at all, how do we deal with the national debt?

 

Well if he wasn't going to raise VAT why didn't he say so?

 

What taxes do you think should rise, seeing as you somehow think the Tories will reverse the NIC rise but not increase VAT....Good trick that one!

[taxman]

He also failed to rule out nationalising my house and selling me to the Chinese for body parts, I'm a bit worried now.

 

But he wasn't directly asked about that. If he had he would have had the opportunity to deny the claims. He was asked directly about raising VAT - which impacts upon every single person in the country - and he refused to rule it out.

[Greybeard]

The raise in N.I. is something the employers don't want because it means their shareholders will lose some dividend. M & S would pay about £10 million pound extra, they made over £360 Million pounds in this country alone last year. I know not all companies make this amount of profit but all the big companies care about is profit and their shareholders. If vat does go up it will hit everyone including those that can least afford it the pensioners and unemployed, don't forget if vat does go up it will probably put petrol up as well, which if it goes to 20% would add approx another 3p a litre.

 

It's swings and roundabouts for major retailers. A hike of 2.5% in VAT will hit their turnover and force them to shave profit margins. 3p a litre extra on fuel will also adversely affect their distribution costs and eat into profitability.

 

I wouldn't be surprised to see an introduction of VAT on food, the UK is one of only four EU countries that don't levy VAT on food.

 

Tackling the debt crisis however it's done and by whichever party has the reigns of power is going to hurt, especially those who can least bear the pain.