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Originally Posted by pem
Yes, things would cost more, but people would have more money to spend. A DVD costing 50% more is irrelevant if you have 50% more money to spend. The net result is the same.
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If you currently earn over a certain amount you pay 40% tax on everything over that amount that you earn.
So if you earn £250K a year, that a hell of a lot of tax you're giving to the goverment.
So under Jerrek's plan you're much better off.
However, if you earned say £15K a year, then you currently aren't paying much in tax, so under Jerrek's plan you wouldn't be that much better off when it comes to your take home pay.
Now, suddenly the gov has lost all that tax income and needs to get it back.
I don't know how much VAT would have to go up (btw Jerrek neccessities aren't subject to VAT, so food (exept restaurant) and kids clothes etc are excempt) but in order to recoup the tax loss it would be huge!
Lets say at the moment that the rich pay 70% of the income tax bill.
Under Jerrek's plan this tax burden would be equalised over everyone, so the poor will potentially end up paying more tax.
The rich will have the benifit of buying things from abroad and therefore pay less tax.
PS Two fingers is an insult to the French as it says "i've still got these and can still kill you" as they used to chop our first two fingers off so we couldn't use longbows, however IIRC we'd just learn to use our other two fingers
