The Other TaxPayers' Alliance | VAT: The Tories’ favourite tax.
Clifford Singer lists a long whole range of alternatives to a VAT rise, which the Tories are bound to deliver, and notes:
Let's also remember who increased VAT from 15% to 17.5% in the first place: that party of low taxes, the Conservatives, in 1991. And who increased it from 8% to 15% before that? The Tories, in 1979.
That 1979 rise was particularly deceitful as it followed chancellor-to-be Geoffrey Howe's election promise that "we have absolutely no intention of doubling VAT". The Daily Mail listed the "double VAT" charge as one of "Labour’s dirty dozen lies" days before the election. The Ministry of Truth website lists Howe's promise as one of its "top 10 political porkies of our time".
No doubt to be repeated soon.
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couldn’t agree more – lets not raise taxes – lets cut them 😉
Remember as well that the Tories increased the VAT rate from 15% to 17.5% when they brought in Council Tax. Having been forced to abandon the even more inequitable Community Charge (Poll Tax) following riots in the streets of London, they preferred to introduce just about the worse property tax imaginable. The old domestic rating system was far superior, being the most effective wealth tax we’ve ever had. Property taxes are important since they are difficult to avoid and help to put some restraint on the housing market. Of course a full annual tax on all land is the best tax of all. There are some Tories and UKIP members who support this but I don’t expect a Tory government to threaten the rich property/land owners whom they represent and are dependent on for donations. I mean, even Michael Ashcroft and that Rothermere chap would have to pay LVT.
Yes, of course they’ll increase VAT. They will also introduce charges to see your doctor, I’ll bet.
That’s amazing! I had no idea Howe said that before the ’79 election.
No doubt the Tory apologists will wade in as usual splitting hairs…
8 -> 15% = an increase of 1.875 times, so not quite a doubling of VAT. But the general intent was clear… the Tories will say and do anything to get elected. Which is probably where New Labour got the idea from 😥
To be fair Clifford also notes that: “There is growing speculation that both the Tories and Labour intend to increase VAT to 20% after the election.” And I would agree that it’s not a party political issue this time round.
Mark
I really do not think that was what Clifford was saying
And I really do not see Labour delivering 20%
This is a very, very party political issue
Do we want a depression or not is the question?
From the Tories the answer is a resounding yes
Richard
It is impossible to return to 8% VAT because the EU wouldn’t allow it. VAT is essentially an EU tax. We have one of the lowest VAT rates in Europe and it should rise to 20% soon. If we don’t choose to raise it to 20% the EU will tell us to. It is one of the few tax rises that will actually work – a consumer simply cannot avoid it. All these 50% tax rates, abolishing cap on NICs – they ain’t gonna work apart from reducing the tax take.
Carol, I’ve no idea what you’re talking about: the old rates system was remarkably similar to the current Council Tax.
@Richard Murphy
Richard – I’ve simply quoted Clifford’s exact words. And noted that I agree.
Peter, I wonder, did you ever pay rates? A colleague of mine purchased a very nice house in Oxon in 1977 for £50,000 with an annual rates bill of £700 . For my home, value about £10,000, the bill was about £100. There was no upper limit to what you paid. The rates were not an issue for the majority of households. It was the rich who grumbled so and persuaded the Tories to abolish them.
Mark
Yes, but that’s not his context
Let’s agree to differ
Richard
so its not what he says that counts – its what you think he says? Isn’t that putting words in people’s mouths?
Alastair
read the whole piece
See what he was driving it
I’m right
Clifford would, I know, agree
Richard