No one likes paying more tax , but the increase in VAT is needed to help rebalance our budget and is a progressive tax inasmuch as it is paid by everyone and is relatively discretionary.
For retail shoppers the actual rise is only 2.1% if the seller plays fair as the selling price of goods and services is VAT inclusive. So to reach the VAT exclusive price of an item , divide the selling price by 1.175 ( to remove the 17.5% VAT ) and then multiply by 1.2 ( to reapply 20% VAT ) So an item that used to cost £100 will be £102.10p
Many businesses will absorb some of the rise in an effort to stay competitive. How many of the VAT purchases are really necessary? Settle for less, find another leisure pursuit other than shopping, drive slower, buy one piece of second hand stuff, shop more carefully, take one less thing to the tip, turn the heating down a degree , don’t leave electrical stuff on standby, learn to cook, entertain at home once in a while…the list is endless. Take some responsibility.
Whilst labour politicians strive to create an image of the downtrodden poor selling their children on street corners for bread, the reality is somewhat different as even Miliband betrays with this fragment of his ‘rousing’ speech in the run up to the Oldham East By-election :
“They will be taxing you with higher VAT when you fill up your car. They will be taxing you when you phone home on your mobile. They will be taxing you higher when you go out and get a cup of coffee. And when you pick up a DVD for the kids on the way home they will be taxing you.”
How much of that is really breadline stuff !! David, your party left the UK in the following position: Income £550 Billion – Expenditure £700 Billion. £150 Billion a year in the red !
Mr Micawber would say that it’s perhaps time to deny ourselves the odd skinny latte and get the kids to watch a DVD they already have. ( Otherwise they will have to stand barefoot on the street corner with mummy in her shawl begging for bread )