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High Vat Rates ......

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1) VAT is well known as a regressive tax.

2) For some reason, when given the choice of 1p on income tax or VAT going up, people always prefer VAT to go up.

nowt as queer as folk.

queer ?

On the basis that the average person in the population has to earn something.

On the basis that average person wages will not be increasing against inflation (true cost of living rises of all necessary expenses to continue to live and work).

Then in order to be "smart" about my spending, I need to be in control of the most amount of money.

Increasing income tax removes that control from me. The money is gone before you see it and what you are left with has decreased and thus given you less control with your spending.

Increasing VAT maintains the maximum amount of control I could have out of the situation. As I can choose what/if I spend the money on. I can then choose the no/low VAT route voluntarily (never having take away - paying VAT, buy and cook food myself - paying no VAT, grow my own - low cost in money, higher cost in time).

Also those on low incomes may look at increasing VAT as a way to tax the better off who spend more of their take home pay on standard rate VAT products. I don't see why it is seen that a VAT increase hits the poor people harder than the rich (by income) people. What is this zero/reduced VAT product that only rich people buy and benefit from.

Doesn't the UK have a low VAT rate compared to europe ? Maybe VAT should go higher than the 20% but more other product classes be moved into the 5% tax band. Such at those necessary items needed to live, work and educate.

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