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VAT lies

#1
Well well. Cannot even lie properly

http://4.bp.blogspot.com/_EQc_hLHXONE/SSxbVyE67bI/AAAAAAAADZQ/dfOxtySS0wI/s1600-h/VAT_bomb.bmp


"The finding will prove deeply embarrassing to the Chancellor, who had insisted that the only taxpayers to face higher taxes after the recession would be Britain's richest residents.

Accounting sources said they had been told by the Treasury that the planned increase in VAT was rejected in favour of a new top tax rate of 45 percent for those earning more than £150,000.

However, accountants said the explanation ``did not stack up'' because the new tax rate is only expected to raise £670m in 2011-12. "


http://www.telegraph.co.uk/finance/...sations-of-planning-secret-tax-bombshell.html
 
#2
It was rejected because whilst may be a correct economic decision it is by no way politically acceptable. Bad news, even if it is for a while in the future, will damage the here and now fight to mend the public perception and fear of a deepening recession.
 
#3
We have seen all too often how Torygraph anonymous quotes have been used to back up a journalists imagination. I would trust the article if Messrs Winnett, Osborne, Conway and Tibbetts had stated who the sources were.
 
#4
The source was a Treasury document that was published by mistake.

Even if the government has ruled it out until the end of time, the fact that they're so inept as to publish the damn thing, with all the political ramifications associated with raising VAT (does anyone else remember Brown's completely unsourced and unsubtatitated claim that the Tories intended to raise VAT that was peddled prior to either the 1997 or 2001 elections, BTW?) doesn't exactly fill one with confidence...

I think your chap Vince has summed up the issue well, Sven:

Liberal Democrat Shadow Chancellor, Vince Cable said: "The Government has been at best incompetent and at worst highly duplicitous.
(source the link you provided).
 
#5
Archimedes said:
The source was a Treasury document that was published by mistake.

Even if the government has ruled it out until the end of time, the fact that they're so inept as to publish the damn thing, with all the political ramifications associated with raising VAT (does anyone else remember Brown's completely unsourced and unsubtatitated claim that the Tories intended to raise VAT that was peddled prior to either the 1997 or 2001 elections, BTW?) doesn't exactly fill one with confidence...
I apologise, I referred to the accountant sources who "said the explanation ``did not stack up'' because the new tax rate is only expected to raise £670m in 2011-12. ""
 
#6
Sven said:
We have seen all too often how Torygraph anonymous quotes have been used to back up a journalists imagination. I would trust the article if Messrs Winnett, Osborne, Conway and Tibbetts had stated who the sources were.
Sven,

As the original document with the fact of the internal discussion about an increase to VAT came directly from a HMG site, published by the Treasury, I would have thought that was good enough for you for once.

Analysis requires no sourcing - it is after all, analysis. :roll:
 
#7
. . . . .and in reference to Vinces quote, when he said it, I would have agreed. But since then Brown has said that there was not a chance of him allowing a VAT rise - ref PMQs today.
 
#8
in_the_cheapseats said:
It was rejected because whilst may be a correct economic decision it is by no way politically acceptable. Bad news, even if it is for a while in the future, will damage the here and now fight to mend the public perception and fear of a deepening recession.
I disagree.
The correct economic decision would be a proper and honest review of the way Whiehall pishes money away in huge amounts.
Raising tax is not of benefit the the public, a properly targetted drastic reduction in public spending is.
 
#9
Sven said:
. . . . .and in reference to Vinces quote, when he said it, I would have agreed. But since then Brown has said that there was not a chance of him allowing a VAT rise - ref PMQs today.
Of course he is going to say that, you ejit. How could he say anything else? :roll:

I really didn't think you were that naive. You going do-la-lay in your old age?
 
#10
jagman said:
in_the_cheapseats said:
It was rejected because whilst may be a correct economic decision it is by no way politically acceptable. Bad news, even if it is for a while in the future, will damage the here and now fight to mend the public perception and fear of a deepening recession.
I disagree.
The correct economic decision would be a proper and honest review of the way Whiehall pishes money away in huge amounts.
Raising tax is not of benefit the the public, a properly targetted drastic reduction in public spending is.
You are talking tactics rather than strategy. Try to think bigger, mate :D
 
#16
Oh look, here is part of the Black Hole that does not exist:

Ministry of Defence faces £2bn black hole

The hand-outs from the Chancellor did not include any extra cash for the Ministry of Defence’s equipment programme which is facing a black hole of up to £2 billion.

There had been some expectation that Alistair Darling’s plan to boost the economy by bringing forward a number of prestigious construction projects might have embraced the MoD which has a long list of costly programmes in the pipeline and not enough money in the budget to pay for them.

The MoD is already having to consider delaying or even scrapping certain equipment programmes to remain within the budget limits imposed by the current three-year funding settlement negotiated with the Treasury. There are fears that the construction of the second of two new Royal Navy aircraft carriers may be delayed. The two large carriers are to cost £3.9 billion.

After Mr Darling’s Pre-Budget Statement in the Commons, MoD officials confirmed: “There is nothing in it for us.”


http://business.timesonline.co.uk/tol/business/economics/pbr/article5225583.ece
 
#17
vvaannmmaann said:
Did I hear this morning, that the new VAT rate was not legally enforceable,and businesess were not obliged to pass it on?
VAT has to be paid at the rate of 15% from next week, but there is no compulsion to reduce total prices by 2.13% 'cos that's what it is - 115 compared to 117.5 before.

If you have a shop with 10,000 items priced at 99 pence are you going to spend a week reducing them all to 97 pence????

Are restaurants going to reduce a main course at £14.95 to £14.63?? Are they bollaux........

Odo
 
#18
Odo_de_StAmand said:
Are restaurants going to reduce a main course at £14.95 to £14.63?? Are they bollaux........

Odo
My brother works for M&B, they're currently changing all the menus (at great cost) to reflect the changes, they've 2 versions, one with just a change in VAT, the other reducing prices and the VAT. Which would you use... Considering you have to recover your costs that have been incurred to make these changes.
 
#19
Sven

But since then Brown has said that there was not a chance of him allowing a VAT rise - ref PMQs today.
Is this the same Brown that said that he would get rid of boom and bust?
Is this the same man that said............

Do you really believe in him and all he does?
 
#20
06FA56Paderborn said:
Sven

But since then Brown has said that there was not a chance of him allowing a VAT rise - ref PMQs today.
Is this the same Brown that said that he would get rid of boom and bust?
Is this the same man that said............

Do you really believe in him and all he does?
Vince Cable said this afternoon that whilst government policy had some blame in the current crisis, the finger should be pointed at profligate and incompetent bankers both here and across the pond.

The main cause for the 'bust' was therefore out of this governments hands.
 

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