Showing posts with label VAT. Show all posts
Showing posts with label VAT. Show all posts

Thursday, 20 January 2011

VAT rises and tuition fees

Over the last few weeks I was ask a few questions by the Bracknell Standard as part of the papers 'What does Bracknell think' weekly panel.
 
 
First up VAT rise;
 
VAT has risen from 17,5 per cent to 20 per cent, is this a fair way for the government to try to reduce the national deficit or will it put people off buying consumer goods?
 
 
And my answer
 
Surely it depends on what you buy and how much you spend. Children's cloths and Food do not have VAT added to them yet they still seem expensive.
 
At least if someone who is wealthy and spends their wealth won't be able to avoid this tax on their larger purchases, like they can with their income. The rise ensures that we are all paying the national debt off not just some and therefore gives us all ownership of it.
 
Governments often choose VAT because its the tax that provides the quickest way of raising funds. If the deficit reduces sooner than expected, expect to see this cut sooner than expected (I hope).
 
 
And secondary tuition fees
 
The question;
 
The gist is that universities will now be able to charge up to £9,000 per year in tuition fees. The Government claims that there are a raft of measures to make sure that the new system is actually fairer - for a bit more detail, have a look at this http://www.bbc.co.uk/news/education-11483638
 
We want to know what people's feelings on the issue are. There are many facets to it - is the system fair? Have the Lib Dems betrayed voters? Will the new system benefit the country? Should potential students start looking into alternative futures?

 
And my reply;
 
I am a Lib Dem activist and I'm not looking forward to selling the tuition fee rise on the doorstep. As someone who believes in free education I do not agree with such a large rise. But I do understand why there has been an increase. The increases aside, I do feel the new system is fairer. you don't have to pay it back, What you pay back is linked to your earnings. This should not put people of from going to university once students examine the system in detail.
 
I do not feel the Lib Dems have sold out, I feel we are taking a huge political risk for the good of the country. A minority Conservative government would of lend to another election and 12 months of indecision.

Sunday, 9 January 2011

Luxury VAT rate

Reading blogger Not Yet Out of the Woods has come up with an idea to make VAT more progressive. A Luxury rate of VAT that could be charged on expensive luxury items only. It has been done before by the 1974 Labour government. See the post 'Progressing the VAT debate'.
 
This is something I advocated as an idea on Twitter but was shot down by people claiming that it would be 'to difficult to administer'. Well I don't see how. We currently have many different rates of VAT. All that would be required is a list of services or items and perhaps items over a certain value like expensive cars which could have a higher rate of VAT applied to them. It seems very simple to me.