Economic thoughts

[happy daze john in oz]

With a new PM in UK there is a lot for her to do, the economy is on somewhat shaky ground if the pundits are to be believed.
The following is a proposal I put to my financial advisor a couple of weeks ago.
Your thoughts on it maybe??

In UK you have a Value Added Tax which is currently at some 20%
In Oz we have a Goods and Services Tax currently set at some 10%.

But I question the title and purpose of these taxes.

Value Added, how does that fit with adding it to the cost of utilities, Gas, Electric and Water.
These are essential services and there is no value added to them.

The one in Oz Goods and Services sits a little closer to the fact as the utilities are in fact services.

But in both instances they are essential services so should not be subject to any form of taxation.

Why not remove the tax from these essential services and increase the tax on other goods by 5% to make up the difference?

All utilities and fresh food should be exempt from such taxes, fine to add it to eating out as that is a service which has been added to.
Sadly with ALL governments obsessed with such revenue, easy to garner, I doubt they would agree but the power of the people should begin to stand behind such a change.

[vic mcclymont]

In the UK there is no vat on food. Certain speciality items are subject to vat.
Energy supplies are taxed at 5% and should be binned.
Vic

[Doc Vernon]

Not really into all this, but i do somehow recall that at one stage Years ago there was no such thing??

Why have it anyway, surely things are costly enough without an added Tax on them>
Get Rid of all the Taxes as such and just have the Normal price to pay of whatever Item, Service etc.

Gosh do we not all Pay enough bleedin Tax each Year as it is!??

Think the best way is to scrap all Governments. Sure we can get by with a bit of sensible thoughts!

Bye!! LOL

[Graham Payne]

A elderly Jewish man told me V.A.T. was Vear & Tear.

[James Curry]

Tax is what keeps the country going. No tax,No public services, No defence forces , No health services, Education services etc!!
So can someone explain to me the country is on the bones of it's **** and current PM thinking is to cut taxes? Maybe she has found the Magic money tree.

For those who go to church and the when it comes to the collection /free will offering. Why does the vicar or priest not just toss the contents of the collection plate into the air and say here God take what you want.

[vic mcclymont]

It's a proven fact cutting taxes raise more money than raising them.
Vic

[James Curry]

Tax cuts can boost economic growth. But the operative word there is "can." It's by no means an automatic or perfect relationship. If your sole, ultimate goal is faster growth, tax cuts might not be the best policy.
Well-designed tax policy can increase growth, but to do so, tax cuts have to come alongside spending cuts.
So is it back to the days of Austerity measures again?

Time will tell!!!!

[vic mcclymont]

Rising taxes leads to decrease in disposable income, lowering taxes increases disposable income.

[James Curry]

Well as I said time will tell, but I doubt if she will have the time to see if her economic policy will work. It is likely there will be a change of government at the next general election.
One tax that should be reduced is VAT on petrol/diesel as that would have a knock on effect for all. Hauliers would benifit as would retailers. This would help reduce food prices and other essential goods. Also the 5% VAT on energy gas/electric bills will help. Concerning personal income tax the current rates should remain the same. Corporation tax should be increased from 19% to 25% and it would still be lower than Germany or France. Hungary (9 percent), Ireland (12.5 percent), and Lithuania (15 percent) have the lowest corporate income tax rates.
Companies like Amazon should pay at least 30% tax on UK sales. It is companies like Amazon are killing the high street. VAT on goods purchased in the UK the customer should also pay 25% VAT. It would help small business and as said help restore the local high street traders by making them more competitive.

[Des Taff Jenkins]

Our previous Govt passed a bill giving big wage earners a massive tax cut to the tune of around $250 Billion, wages have not increased for ten years, the Govt are in dept. to the tune of $Billions, It will be interesting to see what the new Labour Govt will do. people want it scrapped
Watched an English show last night where they said that tax on a bottle of English wine is 96%, so they buy NZ wine, which in NZ is taxed at 97% a bottle, which is why they export it all to the UK as Kiwis wont pay it.
Des