Darling cuts VAT in pre-Budget

[alexxxxx]

it's not really like its that much of a tax increase as you only pay 45% on whatever you earn over 150k.

Its not like at 149k you have more money than when you earn 151k (if that makes sense) because you are only taxed 45% on what you earn OVER 150k.

You get the first 6k Tax-Free.

So if you earn 1million you dont pay 450k. You pay a fair bit less.

a

[scottish]

So basically your post had no relevance to anything? Some firms will be able to raise prices because they're inelastic, and some wont because they're elasitc. Well done on teaching us all about elasticity.

And alot of people don't study economics type subject, so epic failz at you.

My post had relevance to the person who posted it

[flyingbrick]

Id usually welcome a 2.5% cut on VAT but it really hurts the economy more.....

1) 2.5% is literally nothing.... 22p knocked off a cd worth £9.99, wow its alot of money isnt it?

2) thousands will now have to be spent on advertisements by businesses, such as catalogs, posters and price tags etc to incorporate the new prices...

3) people will be spending LESS, as if i would really go out and buy another CD worth £9.99 to save 22p? ... theres alot of things i could spend that 22p on isnt their?

4) Its only for 1 YEAR! so in otherwords... within 1 year VAT will be back at 17.5%... great thousands completely wasted on advertisements etc... just to be wasted again?

5) the EU.... yes this debate again.. why wasnt the VAT cut any further? because the EU wont permit a VAT rate of less than 15%

so in the end... its an utterly completely waste of time and money......

One more thing... brown could call an election early next year... but he wont... oh great the next one will be in 2010, thats another whole 18months the labour government has to wreck our country... its only the conservatives which will be left with the clean up... as lets face it... who would vote labour again?

I will, actually.

You quite clearly have no idea what you're talking about.

It isn't labours fault, it is simply a **** time........economies on a global scale are buggered, it isn't just ours. Our government are dealing with it well......they've already bailed out the banks (which HAD to be done - not the governments fault - but the fault of greedy, overpaid bankers), and now they're planning to cut the taxes on people earning less than 40K a year, therefore easing the financial burden on those who need it most.

Times are hard and the people on low incomes are the people that need the money most. True, those earning high wages will feel aggrieved at being taxed more, but they don't need that money to survive. They simply want that money to enrich their life.

Society is there to protect those who really need it, and the money should be distributed as such. That is what labour government is all about, and that is what they are trying to do.

They've cut VAT by over ten percent, which is significant. You're arguing about it and saying that the price of products haven't come down a great deal, but the price of VAT on a product was only 17.5 percent in the first place. If you want a noticable price cut then you should start asking questions of the retailer, not the government.


If elected, the conservatives will reduce taxing on the rich, cut spending on public services, and increase state spending. Taxes will not reduce, the poor will be poorly looked after, and our economy will be put into the hands of a party that has consistently failed in the past.


I'll be voting labour come the next general election, and I'm sure, that despite your nonsense statement, many others will be too.

[Earthquake]

This is awsome! I will be able to get my laptop I wanted with my own money!

[irJen]

This is awsome! I will be able to get my laptop I wanted with my own money!

I ordered my new laptop the day before the budget announcement- dammit lol

[Ramones]

And alot of people don't study economics type subject, so epic failz at you.

My post had relevance to the person who posted it

Your post had relevance to the person who posted it? So it had relevance to you? wow your clever.
And no your post wasn't correct, see my above for the real economics type answer

[scottish]

Most retailers have price elastic demand as theres substritutes for most things

The post had relevence to the person which i was quoting, fool.

[Ramones]

Most retailers have price elastic demand as theres substritutes for most things

The post had relevence to the person which i was quoting, fool.

lol theres alot more to take into account than substritute goods, stop thinking economic textbook and start thinking real life.

[Corporal]

Most retailers have price elastic demand as theres substritutes for most things

The post had relevence to the person which i was quoting, fool.

whats that bit mean?

[kk.]

whats that bit mean?

if a product is more elastic, then any change in price will affect demand by a huge amount. if it is more inelastic then if the price of the product changes then there will be a very little change in demand. Inelastic products tend to be goods which are necessary for living so petrol, bread etc. Elastic goods tend to have substitutes such as TVs and other electrical appliances