Quote:
Originally Posted by Will21st
...IMO the next gov should encourage hard work a lot more by lowering income tax severly and raising VAT a lot more,say to 25 %.
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I like that idea.
Quote:
Originally Posted by Ignitionnet
...That would be horrendous. Income tax is a progressive tax so takes account of some ability to pay while VAT does not. Increasing VAT too highly would reduce consumption of goods and services so people spend less and would potentially reduce overall tax take due to a combination of this reduction in consumption along with increased tax evasion. People buying less would also harm the economy a great deal too. No purchases mean no jobs needed to supply the goods and services in the first place. |
I disagree. A young person starting his/her working life should be encouraged to earn money and save money. Raising income tax discourages people from earning money (ask those at the higher rate threshold), and a low rate of VAT encourages spending, not saving.
Or do you want the young person starting his/her working life to forget about saving and borrow, borrow, borrow to spend, spend, spend - just like the government?