Stimulating tax cuts

[JohnD]

I was listening to the radio about the idea of cutting taxes to stimulate the economy.

link to interview on http://news.bbc.co.uk/1/hi/programmes/moneybox/7730431.stm

objectives is to get people spending in a way that helps the economy.

if they spend it on imported goods (chinese TVs etc) then the prosperity is exported.

If they save the money insterad of spending, it doesn't help

I was thinking a good ruse would be to cut VAT on building work and materials.

although a lot of boilers and taps are imported, lots of basic materials are fairly local, and so are most building firms and craftsmen.

 

[Bahco]

Any vat / tax cuts will have to be paid for at some point. The country does not generate enough tax as it is and so the govt has to resort to borrowing.

I don't know what the answer is but The govt has a massive job on their hands and I don't envy them.

 

[joe-90]

Most in the building game are Poles who send their wages overseas (and child benefit) so how does that help the economy? Let's face it, there is a shifting balance here. The East is manufacturing and the West is simply buying. Because the West has no money we are borrowing from the East to buy the products that the East are selling us. There is no happy ending for the West.

 

[securespark]

Stimulating tax cuts

VAT removed from the products on sale at the sex shop?

 

[big-all]

Most in the building game are Poles who send their wages overseas

a not very well thought out comment from somone i have looked upon as reasonably sensible person
whether i agree with his arguments or not

 

[blondini]

Bump!

Is VAT to be cut?

The government is expected to cut VAT by up to 2.5% in Monday's pre-Budget report as part of an emergency package aimed at kick starting the economy.

 

[Thermo]

Most in the building game are Poles.

how many excatly then?

 

[tim west]

I like Chinese.
I like Chinese.
They only come up to your knees,
Yet they're always friendly, and they're ready to please.

 

[joe-90]

Most in the building game are Poles.

how many excatly then?

Most.

 

[Thermo]

how many is that then, what sort of figures are we talking, because its certainly not like that down here, and the ones that were here are departing rapidly

 

[^neo^]

Bump!

Is VAT to be cut?

Yep, down 2.5% from Monday 1st.
Which means if i dont go xmas shopping this weekend as planned, i can save myself 12.5p on the other halfs pressie

 

[WoodYouLike]

Any vat / tax cuts will have to be paid for at some point. The country does not generate enough tax as it is and so the govt has to resort to borrowing.

I don't know what the answer is but The govt has a massive job on their hands and I don't envy them.

VAT was originally introduced to pay 'contribution to the EU.

A drop from 17.5 to 15% means 2.13% less to pay on items
100 + 17.5% = 117.50
100 + 15% = 115.00
Difference = 2.50 divided by the original price of 117.50 (times 100 to get the correct percentage) = 2.127

 

[Bilioustrumpstaine]

So from Monday the prices will all change in the shops (yer right) the TV thats is £99 will be £97. something. Or will the TV still be £99 and the retailer trousers the extra profit. Hmmm....

Will my cinema ticket be cheaper.

Will fuel prices drop.

Lets wait and see.

 

[2scoops0406]

So from Monday the prices will all change in the shops (yer right) the TV thats is £99 will be £97. something. Or will the TV still be £99 and the retailer trousers the extra profit. Hmmm....

Will my cinema ticket be cheaper.

Will fuel prices drop.

Lets wait and see.

Your fuel prices won't drop as there will be a corresponding increase in fuel duty.

It will make precisely sod all difference. Jobs need to be generated, removing VAT from building materials will not in itself correct the systematic problem in building in that land has been bought at unsustainable prices.

 

[Shytalkz]

And now we've all got to p*ss about with our accounts software to get it to charge VAT right