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Will the VAT rise alter your spending habits?


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The vat increase hits everyone the same,

 

No, it doesn't. How on earth can it? VAT is a tax on the consumption of everyday items, not just luxuries. Essential items that most people need to live on a day-to-day basis.

 

If a disadvantaged person has only a few pounds to spend on these essential items per week, Then their spending power has now been reduced because of the Tory/Lib Dem tax increase.

 

A multi-millionaire might now only purchase six new yachts in a year, instead of seven. The Poorest in society will have to eat less, put on their heating less often and be unable to afford new clothes.

 

It is a ridiculous, even lunatic notion to suggest that a tax on consumption hits everybody equally in a society with such a huge disparity in wealth.

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People on low incomes have to spend a much bigger part of their wealth than those on high incomes in order to meet their everyday basic needs.

 

People on very high incomes (Tory/Lib Dem supporters) have much more of their wealth left over after they have bought everything that they need to live extremely comfortably. Studies have shown that VAT increases are REGRESSIVE, and hit those worst off the hardest.

 

George Osbourne (the Tory/Lib Dem Chancellor) obviously believes that by jetting off to Prince Charles's favourite ski resort, Klosters, for a few days at a cost of £11,000 he is setting an excellent example that "we're all in this together".

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Your best off getting the Sheffield property shop magazine. It might not be as soft as luxury velvet, but wiping your arse on the various estates is priceless.

 

I onced used a Labour Party Manifesto but ended up in a worst state than when I started :hihi::hihi::hihi:

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There is a lot of reference to 2.5%, both on here and on the news etc. What about the "big picture"? That is, we could now potentially be paying 20% of our take home pay on VAT. Take 10k home and 2k of it goes on VAT straight away.

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There is a lot of reference to 2.5%, both on here and on the news etc. What about the "big picture"? That is, we could now potentially be paying 20% of our take home pay on VAT. Take 10k home and 2k of it goes on VAT straight away.

 

More like take home £12.4k

 

Tax and (NI) tax takes 1.9k

Council tax £1.1k

Rent £3k +

0 (VAT) rated food, some £1k+

Utilities £2k

Transport £1k-5k+

 

People have sod all left to spend on items that attract VAT. Probably living on credit to buy the essentials.

 

15% on the dole and 50% of Sheffielders going insolvent over the course of a lifetime if insolvencies remain at the present rate/

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