Politicians should consider imposing VAT on food, children's clothes and household gas and electricity, a report from a think-tank suggests.

Eliminating the exemptions on VAT would make the levy a less complex tax and bring the UK in line with other nations, according to Reform.

The right-leaning think-tank also questioned the structure, simplicity and certainty of the tax system.

Between 50% and 60% of what the average household buys includes a VAT levy.

VAT returned to 17.5% in the new year after being reduced to 15% on 1 December 2008.

Yes but not with VAT. Indirect taxes like VAT are regressive. Of course the right wing like them because it hits the bottom 90% of the population harder than the top 10%. The first areas that should be considered are the areas where tax cuts have been made in the past, such as higher income tax, capital gains taxes and only then hitting the poor with VAT hikes. It would also mean that to have no effect on the low paid it would mean a big rise in benefits and minimum wage.

Heard some woman from them being interviewed about this on the radio this morning. I would probably categorize her as 'a mental'. The interviewer reached the point of incredulity with her as she barfacedly claimed she'd rather pay 17.5% tax on groceries than 3% extra on luxury goods. I guess he buys a lot more jewelry than bread.

Jon

it requires a 'river' up affect as opposed to a 'trickle' down affect …

Trickle down never ever existed. The taxes that were cut to supposedly encourage trickle down should be reversed.

agreed
that is why i believe in a flat rate tax system across the board for everyone
with no 'get out of jail card free' for anyone …

It's the people who are just above the threshold that would be hit worst.

I think people who earn 100k or more should pay more taxes.

I think people who earn 100k or more should pay more taxes. Those in the private sector should pay more too.