Tuesday, 14 April 2009

Extend The VAT Cut

It works.
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5 comments:

  1. Anonymous15 April 2009 at 11:14

    A poll conducted by the Federation of Small Businesses in February this year found that 97% of firms polled said the VAT cut had had "no impact at all."

    Exactly how is this evidence of the cut working? What about the costs to business in changing their prices to accommodate the VAT rate change?

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  2. neil craig16 April 2009 at 12:25

    The article says it boosted sales by £2.1 billion - about 10% of the cost of the VAT cut. Had an equal amount gone on a corporation tax cut it would have cut the rate to 1about 16% - not quite the stimulus the Irish economy gave itself but a major step that way.

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  3. David Lindsay16 April 2009 at 14:38

    Anonymous, that's one of the worst points I've ever read. VAT must always stay the same, because otherwise shops have to chnage their prices? Come on!

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  4. Charlie Marks17 April 2009 at 06:42

    The bigger the cut, the bigger the boost to spending, no? But the lowest you can have VAT is 15%... under EU rules.

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  5. David Lindsay17 April 2009 at 16:50

    Quite.

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