Trouble is that the UK runs a service economy with invisible exports just about covering import bills.
The more people spend means the higher our imports cost because of the materials we have to import so spending we DON’T want. In fact I’d like to see some goods rationed even if only for a while.
Then there’s the number of people living on Benefits or getting benefits to raise their standard of living while reducing the standard of living or ability to save of those not on Benefits. By increased VAT for example that would reduce spending while providing tax income to address the government Gilts problem.
No, tax hikes are needed to deal with this and if targeted to REDUCE spending so much the better. There is no alternative.
Taking into account the borrowing that has had to be done to help the economy during the Covid19 outbreak, every man woman and child in the UK will have a minus GDP, hence 0.7% of bugger all, is bugger all… So based on that; The countries we send aid to, now owe us money…Yes?
Cutting some taxes can increase foreign investment but mostly in the finance sector. Increasing taxes does indeed result in layoffs but that reduces our imports which with the state that our economy will be a GOOD thing.
Hopefully the country will emerge leaner and fitter than we have been for years but right now the apparently obvious solutions are anything but.
What we need now more than ever is someone with the Thatcher touch because there are some very difficult measures that are going to be needed. BoJo has done a good job thus far with BREXIT, let’s hope he can pick up the Thatcher mindset and run with it.
The majority of people, Clown Cameron being one of them, don’t understand what GDP means, especially in the case of an economy so finance sector dependant as the UK
It’s certainly open to fraud in many ways. Even at a trivial level such as getting quotes on the understanding that we won’t require a receipt and will pay in folding money. That’s worth a 20%+ discount right from the get-go providing there’s no high cost materials that will have to be bought but it still hugely reduces labour charges.
Yes. But VAT was introduced to simplify trading within the trading bloc. I remember when it started it was possible to buy a special pocket calculator by some outfit called the Decimal Vatman.
Yes l remember prchase tax Percy, but if l remember correctly it
was’nt levied on everything though ?
I also thought VAT was btought in to eventually replace income
tax,ostensibly to save on the costs of administering the revenue
service and collecting costs etc? I wonder what happened to that
idea?
Could be a good idea if properly organised as it would be difficult
to dodge your tax bill and the big spenders would pay more tax
automatically !!
Maybe thats why it was dropped?
