by Rick Lowe
First, the fact that VAT rates will be increased as the government thinks fit if it is implemented cannot be disputed. In Britain VAT has doubled from 10% to 20% since implemented in 1973. Read more here…
Second, a VAT is no more "progressive" than excise taxes. Shadow Chancellor of the Labour Party in the UK, warned that increasing the VAT there from 17.5 to 20 percent was "likely to hit the poor hardest."
See chart below and read more here…
Third, a VAT will increase the cost of services that are already high enough in many instances and without significant reductions in excise taxes, the price of goods will also increase.
It's appears that the point of implementing a VAT (raising taxes) is simply so the tough decisions necessary to slow the growth of government and reduce the tax dollars it needs to feed itself and the money it spends and wastes, can be put off for future generations to pay yet again.
I'm not so sure raising taxes in this economic environment is the appropriate step. How about you?
Rick I hope you are safe and sound after Sandy, Rick have a peek at the Canadian VAT/HST model, we in fact reduced the rate from 8 to 6% and it’s a progressive tax ( credits have to be passed on ) and when combined with the Ontario Sales Tax the rate is 14%, Rick those with lower incomes in Ontario receive a monthly/quarterly tax rebate, the British model is a result of successive governments overspending and the British nanny state.
Thanks Ken.
All is well here at home. A few trees down in the road, but that’s only a bit of an inconvenience.
Still worried for those in Abaco and Eleuthera.
No reports of loss of life yet so that’s good. Only a homicide!
Thanks for your input on taxes.
Until spending here is brought under control and contraints place on the govenment I do not see any good coming of a change in taxation methods.