20% VAT will leave poor paying higher tax than banks

Net Nut · 28/12/10 - 00:51

Britain's poorest households may soon pay a higher tax rate than major banks -

http://www.mirror.co.uk/news/politics/news/2010/12/27/20-vat-will-leave-poor-paying-higher-tax-than-banks-115875-22810154/

Lincoln Hawk · 28/12/10 - 00:54

How much do "the poor" contribute compared to the "major banks"?

ThinWhitePuke · 28/12/10 - 00:55

Net Nut wrote: »

Britain's poorest households may soon pay a higher tax rate than major banks -

http://www.mirror.co.uk/news/politics/news/2010/12/27/20-vat-will-leave-poor-paying-higher-tax-than-banks-115875-22810154/

The stuff the poor buy like food and childrens clothes is free anyways so it won't affect them

It will affect them if they buy plasma tv's but they should not be doing that anyway if they can't afford it

tghe-retford · 28/12/10 - 00:58

ThinWhitePuke wrote: »

It will affect them if they buy plasma tv's but they should not be doing that anyway if they can't afford it

Clothes for adults, that's a luxury isn't it that they can afford to go without..?

Try going out without any clothes on and see how far you get before the Police have a word.

MARTYM8 · 28/12/10 - 00:59

I feel a lot sorrier for the poor in the third world on 30p a day making all the tat these people buy in bulk (often unnecessarily) in Matalan and Primark. They were almost queueing out the door in my local Primark today - the sheer greed and waste of it all!:D

LostFool · 28/12/10 - 01:06

tghe-retford wrote: »

Clothes for adults, that's a luxury isn't it that they can afford to go without..?

Try going out without any clothes on and see how far you get before the Police have a word.

How much do people spend on clothes? Apart from a few pairs of Tesco socks I haven't spent anything in at least 6 months.

rusty123 · 28/12/10 - 01:51

LostFool wrote: »

How much do people spend on clothes? Apart from a few pairs of Tesco socks I haven't spent anything in at least 6 months.

You should know better than to let reality get in the way of a good whinge

Poor people don't buy brand new big ticket items. If they do they aren't poor and I doubt too many people would be detered by the price of a pair of jeans going up by less than 20p. Where people will be hit the hardest will be the price of the fuel in the cars that took them to the supermarket in the first place.

Charnham · 28/12/10 - 02:01

never mind to and from the supermarket, it will hit them on either the petrol in there cars, to work, or a rise in the bus fair to work.

ShaunIOW · 28/12/10 - 02:10

ThinWhitePuke wrote: »

The stuff the poor buy like food and childrens clothes is free anyways so it won't affect them

The finished item might be VAT free at point of sale, but the prices will still rise due to VAT on the materials to manufacture, packaging, fuel costs to make and distribute, advertising costs etc

JonPaulWild · 28/12/10 - 02:14

Has Ed Milliband or Alan Johnson come out and said that should be in or a part of the next government that VAT will be changed from 20% to a lower level such as 17.5%? Is there any commitment from Labour on this issue? Or are they happy that VAT is going up and let Tories and Lib Dems take the flak for it.

Judge Mental · 28/12/10 - 02:37

ThinWhitePuke wrote: »

The stuff the poor buy like food and childrens clothes is free anyways so it won't affect them

It will affect them if they buy plasma tv's but they should not be doing that anyway if they can't afford it

Cliche alert!

whitecliffe · 28/12/10 - 07:31

See the article conveniently managed to forget:-

Banks pay employers national insurance.
Banks are only partially exempt from VAT so banks do pay some VAT which other businesses can reclaim.

Lincoln Hawk · 28/12/10 - 07:36

People need to be encouraged to save and discouraged from spending on frivolities. The days of people splurging on flat screen TVs and cans of beer are over. They need to be planning for the future.

DavidCH · 28/12/10 - 08:10

So what luxury items will the poor put in front of basic food stuff and clothes?

Miasima Goria · 28/12/10 - 08:13

DavidCH wrote: »

So what luxury items will the poor put in front of basic food stuff and clothes?

Frivilous stuff like gas and electricity?Wonder how hoe before some bright spark suggests putting VAT on Council Tax?

DavidCH · 28/12/10 - 08:16

Miasima Goria wrote: »

Frivilous stuff like gas and electricity?Wonder how hoe before some bright spark suggests putting VAT on Council Tax?

Is that VAT charged at 20% then?

DavidCH · 28/12/10 - 08:16

What do you suggest the VAT rate on Council tax should be? A luxurious one perchance? Any wild extrapolation welcome.

Miasima Goria · 28/12/10 - 08:22

DavidCH wrote: »

Is that VAT charged at 20% then?

Think it's 5% actually. Is it going up next week. Not found info as yet.

DavidCH · 28/12/10 - 08:24

Miasima Goria wrote: »

Think it's 5% actually. Is it going up next week. Not found info as yet.

So the thread asks about 20% but poor people pay 5% on essentials (or less). You tell me what your point was. I'm pretty well off, and pay lots of 20% 'ers. That's not fair is it?

Miasima Goria · 28/12/10 - 08:26

DavidCH wrote: »

What do you suggest the VAT rate on Council tax should be? A luxurious one perchance? Any wild extrapolation welcome.

Obviously it will have to be high - schools, libraries and social care are a luxury in these financially challenged days.

DavidCH · 28/12/10 - 08:37

Miasima Goria wrote: »

Obviously it will have to be high - schools, libraries and social care are a luxury in these financially challenged days.

Why not just raise the council tax so that those of us who worked hard at school pay even more for those who didn't? This is what happens, I pay £40 grand a year in tax for 2-3 fe ckless families to exist.

Miasima Goria · 28/12/10 - 08:43

DavidCH wrote: »

So the thread asks about 20% but poor people pay 5% on essentials (or less). You tell me what your point was. I'm pretty well off, and pay lots of 20% 'ers. That's not fair is it?

Surely the point is why we pay any VAT at all on domestic fuel?

DavidCH wrote: »

Why not just raise the council tax so that those of us who worked hard at school pay even more for those who didn't? This is what happens, I pay £40 grand a year in tax for 2-3 fe ckless families to exist.

Council Tax is unlikely to rise under this Tory-led govt.

I'm getting confused - do you want the poor to pay more tax, not less?

DavidCH · 28/12/10 - 08:45

Miasima Goria wrote: »

Surely the point is why we pay any VAT at all on domestic fuel?

Council Tax is unlikely to rise under this Tory-led govt.

I'm getting confused - do you want the poor to pay more tax, not less?

I admit I missed the fuel VAT, of course it's not value it's essential.

The poor pay no tax, they get a living from those who do? What do you think is acceptable? I pay £50 a week in council tax, is that fair? two of us? The reason I pay so much is because we have so many who pay zilch. Who is best for the country?

Your confusion arises because nothing is as black and white as the shepherds say so.

Annsyre · 28/12/10 - 09:48

DavidCH wrote: »

Is that VAT charged at 20% then?

VAT on gas and electricity is 5% and there are no plans to raise it.

[Deleted User] · 28/12/10 - 09:55

I'm not very keen on the word "poor". Surely there's no real poor people in this country

GreatGodPan · 28/12/10 - 10:01

gertrude wrote: »

I'm not very keen on the word "poor". Surely there's no real poor people in this country

Of course there aren't, Gertie.

Keep taking the tablets.

Hey there!

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20% VAT will leave poor paying higher tax than banks

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