Thanks to the economic crisis, the government needs more money. There are two ways they can do this: raising income tax, or raising value added tax (VAT). Essentially, the difference is that raising VAT means that everyone loses the same amount of money, whereas raising income tax means some people would lose more money than others. At first glance, VAT might appear fairer, but it's actually a lot less fair- to explain why, I'll hand over to Jesus:
MARK 12:41-44
41 Jesus sat down opposite the place where the offerings were put and watched the crowd putting their money into the temple treasury. Many rich people threw in large amounts. 42 But a poor widow came and put in two very small copper coins,[a] worth only a fraction of a penny.[b]
43 Calling his disciples to him, Jesus said, "I tell you the truth, this poor widow has put more into the treasury than all the others. 44 They all gave out of their wealth; but she, out of her poverty, put in everything—all she had to live on."
(you can get to my source of bible-quoting by clicking on the verse numbers. They might be invisible, since hyperlinks on this blog sometimes are)
The point is, rich people can cope with giving more money, and it will decrease their quality of life less. When poor people give the same amount, they are affected more. VAT takes the same amount from everyone, regardless of income. The amount of income tax you pay, obviously, is based on the amount of income- so more is taken from those who can afford it.
Cameron is obsessed with being fair recently, but his decision to raise VAT to 20% clearly isn't. Not only that, but he justified cutting child benefit because "we think those who are most off should have a bigger part to play in reducing the benefit." The obvious contradictions here are laughable.
Cameron is obsessed with being fair recently, but his decision to raise VAT to 20% clearly isn't. Not only that, but he justified cutting child benefit because "we think those who are most off should have a bigger part to play in reducing the benefit." The obvious contradictions here are laughable.
Chancellor George Osbourne has made the bizzare claim that raising VAT will "increase employment, because people will take it as a sign the government are tackling the deficit." Uh, right.
Firstly, fewer people presently have jobs because presently there are fewer jobs, not because the country being in debt is making them scared to earn money. Secondly, even if that was the case, the extensive cuts the Tories are making would be enough of a sign that they were trying to tackle to deficit, would it not?
Firstly, fewer people presently have jobs because presently there are fewer jobs, not because the country being in debt is making them scared to earn money. Secondly, even if that was the case, the extensive cuts the Tories are making would be enough of a sign that they were trying to tackle to deficit, would it not?
Other than that, Cameron has said that raising income tax would "damage businesses." Well, if Cameron is more worried about damaging the business sector than the whole of the rest of Britain's population, I don't think I have anything to say on the matter- other than "you are a terrible prime minister".
But hey, we'll be able to get rid of the Coalition in five years! There is a bright outlook after all.
See you all tomorrow!
Also, something I noticed a while ago.
ReplyDeleteIf prices in the homeland (Russian sayings FTW), and prices outside are decreasing...what's to stop you buying outside? Nothing.
If anything, this will improve the US Economy more than our own.