My Weekly Rant 6 New Standard VAT rise to 20% in 2011 what it means
My weekly rant number 6
Happy New year to one and all, well its only taken me till the 4th of January of 2011 to start a new weekly rant, after having a nice Christmas spent with family its back to the nitty gritty of work and back to paying the bills and having to face the fact that most items i now want to buy will cost 2.5% more than they did last year.
The Government has decided to increase the rate of V.A.T (Value Added Tax ) to a new all time high of 20% to raise further revenue to get the country out of debt.
Have i had a wage increase in the last 2 years NO!!
So what does this new standard VAT rise mean to us?
Well what the new 20% VAT rate means is that ultimatelyi like everyone else in the country is 2.5% worse off everytime i make a purchase with my hard earned wages that i have already been taxed on. So taking this VAT rise with the cuts due this year in Child Tax Credit and the fact that most of us haven't had a wage increase in the last few years we are a darn site worse off.
A pint of beer is set to cost £3 and more that's right £3
A Gallon of fuel is set to be £6 per gallon and rising
Again and again we are being taxed to the hilt and its becoming harder and harder to make ends meet.
Now it costs you more today because of this latest VAT increase just to walk out your door and transport yourself to work there is no escape from this onslaught,a monster has been created and its a hungry one at that at its not going to stop till its bled us dry,but us good old Brits just carry on regardless and take it on the chin.What happens in other countries when taxes go up? In America there is more or less riots if they put a cent on gas but over here in good old England we just lay down and take it.
Are there any positives to the new 20% Standard VAT rate rise
Well yes of course there is if in the long run it helps to stabilise the country then of course its a good idea and quite frankly it could possibly be one of the most fairest forms of tax let me explain.
I work therefore i pay tax (income tax), when i save some of the money i have to then pay tax on that money as well, if i then purchase something i then once again pay tax on that effectively whatever you do you get tax on it more than once.So how then can this form of VAT tax be fair, well its fair because there is one common thing in all this i work so i pay tax.
Now there is a lot of people in the country who work and don't pay tax or declare their earnings well regardless of anything else if they buy anything with this money they will be taxed on it.
So why not decrease the the rate of income tax and if anything increase the rate of V.A.T further so everyone who buys anything pays tax.
The same can be said about paying road tax which of course i do but many people don't so why not scrap the road tax and increase the tax further on petrol so those that do drive will pay for the fuel they use and increasingly making it harder for people to avoid paying tax and adding a further burden on those that abide by the rules.
Well of course my weekly rant wont make a jot of difference but as usual it gets it off my chest and makes me feel a little better if just poorer,so until my next rant please feel free to leave your comments and suggestions they are all gratefully received.