Re: Tory economic policy (or lack of?)
 

pedantic ON

Food, books, newspapers, magazines and children's clothes are all zero-rated.

pedantic OFF

:p:

Re: Tory economic policy (or lack of?)
 

off topic on

but "luxuries" like tampons are vat rated

off topic off ;-)

Re: Tory economic policy (or lack of?)
 

If it's irrelevant then why didn't they say so? Surely your own statement sums it up 'to advise the Conservative party on tax' not to advise Michael Howard but the party as a whole

Re: Tory economic policy (or lack of?)
 

But not at the 17.5% rate, it's 5%. :)

Re: Tory economic policy (or lack of?)
 

Big deal!! :p:

Re: Tory economic policy (or lack of?)
 

yes if they only did the first bit why the need to lower the basic rate to 20%?

Re: Tory economic policy (or lack of?)
 

strange they're not looking to adam smith who said: it is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion", because a tax on "the luxuries and vanities of life [which] occasion the principal expense of the rich... would in general fall heaviest upon the rich; and in this sort of inequality there would not, perhaps, be anything very unreasonable."* hmm. maybe thats where vat came from when i think on - wasnt it supposed originally to be a tax on luxuries?


* with thanks to some prof who wrote into the guardian today ;-)

Re: Tory economic policy (or lack of?)
 

Well as pointed out if it is all luxury goods (which includes things like ready meals I think. Then 17.5p in every 117.5p goes in VAT to the treasury. Also Tesco makes profits globally but has its head office in the UK so pays 20% corporation tax on those billions of profits it announces each year. Any there is NI paid from this income, and business rates (a central govt revenue stream - even though it is collected by the local council)