I1L2T3 Posted August 16, 2016 Share Posted August 16, 2016 Like what? Already discussed: BoE backed infrastructure investment, helicopter money, or at the very least robust policing of how QE money is used by the banks. Link to comment Share on other sites More sharing options...
Cyclone Posted August 16, 2016 Share Posted August 16, 2016 Okay, so I'd got it correct when I said that the PM could reduce the rate to 15% if desired. ---------- Post added 16-08-2016 at 10:22 ---------- Already discussed: BoE backed infrastructure investment, helicopter money, or at the very least robust policing of how QE money is used by the banks. The most recently announced QE is in the large majority a purchase of government bonds. Link to comment Share on other sites More sharing options...
El Cid Posted August 16, 2016 Share Posted August 16, 2016 The EU mandates three levels of VAT: a "standard" rate, which has to be at least 15%; a "reduced" rate on certain specified things, which has to be at least 5%; and 0% (or above) on certain other specified exemptions. See here. The UK charged 0% VAT on domestic fuel bills in 1991, the Conservative government introduced a VAT rate of 8% in 1993. This was later lowered to 5% under Labour. This talk of the EU stopping Government doing things is rubbish, it is just an excuse. Link to comment Share on other sites More sharing options...
unbeliever Posted August 16, 2016 Share Posted August 16, 2016 (edited) The UK charged 0% VAT on domestic fuel bills in 1991, the Conservative government introduced a VAT rate of 8% in 1993. This was later lowered to 5% under Labour. This talk of the EU stopping Government doing things is rubbish, it is just an excuse. Really not. In the specific case you refer to, pressure was likely applied to get VAT on domestic fuel. And the rules say that once it's there it can't be removed, or lowered below a certain rate. Just wait a bit. When we leave the EU these things will shake out. Edited August 16, 2016 by unbeliever Link to comment Share on other sites More sharing options...
Cyclone Posted August 16, 2016 Share Posted August 16, 2016 What exactly do you think will shake out? We already have a general VAT rate higher than the minimum demanded by our EU membership. So the EU is not keeping it at 20%, it could be lowered to 15% today. Link to comment Share on other sites More sharing options...
El Cid Posted August 16, 2016 Share Posted August 16, 2016 Really not. In the specific case you refer to, pressure was likely applied to get VAT on domestic fuel. And the rules say that once it's there it can't be removed, or lowered below a certain rate. Just wait a bit. When we leave the EU these things will shake out. I give you a specific example and you still give a wishy washy reply Link to comment Share on other sites More sharing options...
unbeliever Posted August 16, 2016 Share Posted August 16, 2016 I give you a specific example and you still give a wishy washy reply If you say so. The reality is that there are strict constraints on VAT rates for EU members. This will not be our problem for very long though, so I wouldn't worry about it too much. Link to comment Share on other sites More sharing options...
truman Posted August 16, 2016 Share Posted August 16, 2016 If you say so. The reality is that there are strict constraints on VAT rates for EU members. This will not be our problem for very long though, so I wouldn't worry about it too much. You reckon VAT will be reduced? Link to comment Share on other sites More sharing options...
unbeliever Posted August 16, 2016 Share Posted August 16, 2016 What exactly do you think will shake out? We already have a general VAT rate higher than the minimum demanded by our EU membership. So the EU is not keeping it at 20%, it could be lowered to 15% today. You reckon VAT will be reduced? The VAT rate went up to raise revenue. It's one of the few taxes that was comfortably below the peak of the Laffer curve. This is my opinion anyway. I have no doubt that there will be others. It's also a consumption tax which therefore encourages saving over spending at a time when saving is being discouraged in almost every other way. It would however be nice to reduce VAT in a few keys areas which are not, in any meaningful way, luxuries. Energy is much more expensive now, than it was when VAT was first applied to domestic energy. I think there is a majority in parliament for removing VAT from domestic energy. Also, rather famously by now, tampons; which are not really luxuries. VAT is often criticised as regressive. I agree that it is less progressive than income tax. I've been a vocal critic of it myself. But I think we can agree that it could be made more progressive by reducing and removing it from more items which in the modern world we do not consider luxuries. Link to comment Share on other sites More sharing options...
Solomon1 Posted August 16, 2016 Share Posted August 16, 2016 Already discussed: BoE backed infrastructure investment, helicopter money, or at the very least robust policing of how QE money is used by the banks. Like I already said Helicopter money?? Who's giving me a grand?? Link to comment Share on other sites More sharing options...
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