Comments on: UK: Economic Stimulus of VAT cut – effective? http://www.intomobile.com/2008/11/25/uk-economic-stimulus-of-vat-effective.html Cell Phone News, Information, and Analysis Wed, 25 Nov 2009 18:05:46 -0600 http://wordpress.org/?v=abc hourly 1 By: lasse http://www.intomobile.com/2008/11/25/uk-economic-stimulus-of-vat-effective.html/comment-page-1/#comment-328051 lasse Fri, 23 Jan 2009 16:42:28 +0000 http://www.intomobile.com/?p=31779#comment-328051 VAT is a regressive tax that hit hardest at the bottom. Of course a VAT cut will increase aggregate demand, especially in those segment that consume all or most of their income- if you want to stimulate production/consumption it’s much better than tax cuts for the well of that use only a part of their income on consumer gods and services. A nice shift from loony neo-liberal trickle down nonsense tax cuts. In consumption taxes economic dynamic effect is definitely present. The cashier type calculate on VAT increase and say it will increase revenue so and so but it could very well be negative because of less consumption, less production, unemployment and so on and of course the opposite with lowered consumption taxes. VAT is a regressive tax that hit hardest at the bottom. Of course a VAT cut will increase aggregate demand, especially in those segment that consume all or most of their income- if you want to stimulate production/consumption it’s much better than tax cuts for the well of that use only a part of their income on consumer gods and services.

A nice shift from loony neo-liberal trickle down nonsense tax cuts.

In consumption taxes economic dynamic effect is definitely present. The cashier type calculate on VAT increase and say it will increase revenue so and so but it could very well be negative because of less consumption, less production, unemployment and so on and of course the opposite with lowered consumption taxes.

]]> By: Andy Merrett http://www.intomobile.com/2008/11/25/uk-economic-stimulus-of-vat-effective.html/comment-page-1/#comment-325391 Andy Merrett Wed, 17 Dec 2008 00:33:16 +0000 http://www.intomobile.com/?p=31779#comment-325391 £120 a month, Snidely? Lightweight ;) 2.5% makes barely any difference, except it now means retailers announce silly amounts of pence like £29.20 instead of £29.99. (not that putting .99 and .95 on prices isn't silly) £120 a month, Snidely? Lightweight ;)

2.5% makes barely any difference, except it now means retailers announce silly amounts of pence like £29.20 instead of £29.99. (not that putting .99 and .95 on prices isn’t silly)

]]> By: the truth http://www.intomobile.com/2008/11/25/uk-economic-stimulus-of-vat-effective.html/comment-page-1/#comment-324809 the truth Tue, 09 Dec 2008 15:19:34 +0000 http://www.intomobile.com/?p=31779#comment-324809 THe problem is as well that firms might not in fact change the price at all, instead the they raise the price of the good and the consumer will not notice a change in price. THe firms instead have an increased revenue and they benefit in that way. And 2.5% can be a lot of money when ur talking about a production of million goods and millions of pounds. THe problem is as well that firms might not in fact change the price at all, instead the they raise the price of the good and the consumer will not notice a change in price. THe firms instead have an increased revenue and they benefit in that way. And 2.5% can be a lot of money when ur talking about a production of million goods and millions of pounds.

]]> By: Snidely http://www.intomobile.com/2008/11/25/uk-economic-stimulus-of-vat-effective.html/comment-page-1/#comment-323746 Snidely Wed, 26 Nov 2008 11:10:44 +0000 http://www.intomobile.com/?p=31779#comment-323746 The VAT cut is pointless. 2.5% is not going to make me buy anything. It's probably just going to make my council tax go up (which is already at an extortionate £120/month). The VAT cut is pointless. 2.5% is not going to make me buy anything. It’s probably just going to make my council tax go up (which is already at an extortionate £120/month).

]]> By: Listen To Me Bitch http://www.intomobile.com/2008/11/25/uk-economic-stimulus-of-vat-effective.html/comment-page-1/#comment-323696 Listen To Me Bitch Tue, 25 Nov 2008 21:55:30 +0000 http://www.intomobile.com/?p=31779#comment-323696 As a US citizen, I can say we're definitely feeling the squeeze here, much as you are over seas in the UK, so with that in mind I wanted to stop by and say thank you for the comedic relief your graph provided. J As a US citizen, I can say we’re definitely feeling the squeeze here, much as you are over seas in the UK, so with that in mind I wanted to stop by and say thank you for the comedic relief your graph provided.

J

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