VAT may be on the rise. What politicians haven't yet told the public is how this is going to affect the economy - and, in turn, us.
By Matthew West
Since the formation of the coalition government speculation has been rife that changes to value added tax (VAT) may be needed. A hike to 20% is possible. The exemptions enjoyed by many goods may be withdrawn. This isn't a case of either/or - both may be possible.
A VAT rise of 2.5% may not sound all that much. It would make the cost of the average iPod £3 more expensive. But the reality is it will maintain the current unfairness within our tax system and leave the poorest paying the most in terms of a proportion of their income.
This arises from a shift in our economy to a greater reliance on consumerism, something our economy is already highly dependent on as it is. Essentially it's a piece of taxation trickery.
Why this is necessary is simple. The Liberal Democrats stood their ground on raising the income tax threshold to £10,000 but gaveRead More »from A VAT rise will turn us into America