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The Budget Thread 
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Clearly you're all forgetting that fuel duty is supposed to be punitive. Get out and use public transport etc etc ;).

And before I get roasted, that's a joke. :P

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Wed Mar 24, 2010 12:01 pm
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Yeah, I accept the joke Linux, and as an example:
I live in Stratford-upon-Avon and work in Nottingham. It takes about 1.5 - 2 hours each way and costs about £100 a week in fuel.
If I were to do it on public transport it would cost 3 times as much and take approx 6 hours each way.
When the government start using my fuel duty for something useful, like inventing teleportation then I'll use public transport

I recognise that it's my choice to live and work where I do, but when I moved to Stratford petrol was at 89.9p a litre and I should also point out that we are planning to move nearer to my work at the end of the summer. I can still manage ok on fuel until the price hits 121p a litre (according to my budget) but since it's at 116.9p at the moment and show's no sign of dropping, especially with an extra 3p to go on at the 1st April and who-knows-what in the budget it's starting to look less and less as though I'll be able to afford to feed myself and afford petrol at the same time.

The irritating thing is that oil prices have dropped to the levels of about 2005, less than $50 a barrel and we're still being punished in fuel duty rises, road tax prices etc and having to put up with terrible road quality and a complete inability of the government to fix things or improve things. Just where the heck is my hard-earned money going? It's certainly not on my roads or services :evil:

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Wed Mar 24, 2010 12:12 pm
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There will be live coverage here:
http://news.bbc.co.uk/1/hi/uk_politics/8584505.stm

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Wed Mar 24, 2010 12:19 pm
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Fuel, booze, fags up.

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Wed Mar 24, 2010 12:42 pm
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tombolt wrote:
Fuel, booze, fags up.


What did you expect? The fuel 3p hike is being staggered over the course of the year. 1st April - petrol up by another 1p.

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Wed Mar 24, 2010 1:13 pm
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10% ABOVE inflation duty increase on cider? What a frakkin' thieving git! :evil: :evil:

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Wed Mar 24, 2010 1:15 pm
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paulzolo wrote:
tombolt wrote:
Fuel, booze, fags up.


What did you expect?


Lol, not much else. Interesting to see what happens to the fuel prices. It's quite staggeringly ludicrous at the moment.


Wed Mar 24, 2010 1:17 pm
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10% ABOVE inflation duty increase on cider? What a frakkin' thieving git! :evil: :evil:


It's because cider's always been less than other drinks and now it's becoming very popular.

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From Paul's link (so far):

1314 Mr Darling says the UK "can't take growth for granted" and that government must play its part in helping businesses to grow. Access to finance, in particular, is key, so the chancellor says that over the next year he has agreed with the Royal Bank of Scotland and Lloyds - both state-subsidised - that they will lend some £94bn - at least half to small and medium-sized firms.

e-mail sent in by reader
I am very pleased with the stamp duty exemption limit. However, being more sceptical, it's only for first-time buyers, very few of which are in a position to buy given the disgraceful behaviour by the banks. Furthermore, this £250k level will be reduced in a year or so (a la VAT rate) so the window of opportunity is pretty slim & will only help people already in a position to buy? Why can't they make the banks reduce the required deposit rates? That will help first-time buyers more as long as appropriate valuations are carried out on the properties.
Pete, Manchester - via BBC Have Your Say

House
1308 Cuts will be made to housing benefit paid to those in very expensive properties, the chancellor says.

1309On efficiency savings and cuts, the next public sector spending review will be "very tough", Mr Darling says. The pay bill will reduced for senior civil servants and reforms will be made to cut the pensions bill. Staff will also be relocated from "expensive London offices" to elsewhere in the country - some 15,000 posts within the next five years.

e-mail sent in by reader
I quite like Darling as a chancellor. He speaks a bit more like an accountant, as opposed to Gordon Brown, who was always more of a politician. In these financially austere times this is just what the doctor ordered.
Anthony, Bedford - via BBC Have Your Say

Beer
1307 Those of you who like a drink are going to pay more. Alcohol duty will rise and that on cider specifically will go up by 10% from midnight tonight. Smokers will also pay more as tobacco duty will increase by 1% immediately, then 2% in subsequent years.

1305 Inheritance tax will be frozen for four years.

BBC chief political correspondent Laura Kuenssberg
1304 The BBC's Laura Kuenssberg tweets: Darling confirms borrowing this year lower than forecast - still huge though at nearly £170bn.

1303 Mr Darling goes through the tax rises for richer members of society that he had already outlined. But he says he has no further announcements on VAT, income tax or National Insurance.

1301 Overall, the chancellor says, debt will be £100bn lower by 2013/14 than he predicted at last year's Budget.

Iain Watson
1300 From BBC political correspondent Iain Watson: The stamp duty "tax cut" for first-time buyers was well trailed, but the government's unexpected announcement that this will be paid for by an increase on more expensive homes really does symbolise how the next election will be fought. When times are tough, Labour say they will make "fair choices" while the Conservatives would help the richest. Labour are keen to get as many dividing lines as possible with the opposition but also want to challenge the Conservatives to reverse Labour's measures in a way that would be seen to help the better off. But critics will say this is far too political, rather than an economic move, and even some New Labour supporters will worry that this policy is aimed too much at the core vote, hitting middle-class families in south east England who have seen property prices rise though no fault of their own.

1258 On to the country's borrowing. Mr Darling says it will be £167bn this year - £11bn lower than the earlier forecast of £178bn.

Car
1257 Another policy confirmation - next month's planned 3p increase in fuel duty will be staged to soften the blow. It will go up by 1p in April, another 1p in October and a final 1p in January 2011.

1255 Mr Darling says he has revised downwards slightly the growth forecast for 2011 to between 3% and 3.5% to bring it more in line with predictions from the City. Growth is predicted at 1 to 1.5% for 2010.

Money
1254 Some news for savers. The ISA limit will be raised from £7,200 to £10,200 and will increase each year after that in line with inflation.

1252 That cut for first-time buyers will be paid for by a hike in stamp duty to 5% for properties worth more than a million pounds. This is met with cheers from Labour MPs and stony faces from the Conservatives.

House
1251 Another big thing we thought was coming but is now confirmed. First-time home buyers will pay no stamp duty on properties worth up to £250,000. That will apply this year and next.

1250 Now some news for workers. For those over 60, the chancellor says he will cut the number of hours they need to work to qualify for working tax credits. He also says the government is looking into scrapping the compulsory retirement age. He announces that that the guaranteed offer of work or training for those under 24 who are unemployed for more than six months will be extended until March 2012.

1248 The chancellor says many people - meaning "the Tories" - opposed the government's efforts to respond to the recession. But, he says, without them, "families would have been left to their fate". When he tries to champion the news that unemployment is lower than expected, however, there are considerable jeers from the backbenches.

e-mail sent in by reader
Medium-sized businesses are defined as under 500 employees. This covers approx 98% of UK businesses. Does Mr Darling need to be more clear what is at the heart of this Budget?
John Miles, Mountain Ash - via BBC Have Your Say

Iain Watson
1247 From BBC political correspondent Iain Watson: The chancellor is embarking on an extended narrative to "prove" ahead of the election that Labour got the big decisions right on the economy. But by pointing out that a tax on bankers' bonuses has raised more than twice as much as expected, he can use this as cover, later in his speech, to offer up some goodies even though the deficit will remain extremely high (if a little lower than previously predicted).

1245 Confirmation of something we had expected: everyone in the UK is to be guaranteed access to a bank account. This will extend the facility to more than a million currently denied it, the chancellor says.

1244 Mr Darling says he is going to press for an internationally co-ordinated tax on banks. The Tories want to go ahead with this unilaterally but the chancellor thinks this is a bad idea, he says.

e-mail sent in by reader
I'm furious about raising the level of stamp duty. Whilst it's a brilliant plan, I'm a first-time buyer who missed the stamp duty holiday and complete tomorrow. I'm paying stamp duty for the privilege of buying a flat in these three months. Not happy.
Duncan Roberts, London - via BBC Have Your Say

1242 Onto the banks. Mr Darling says the government was right to bail them out and those that are state-supported are starting to turn things around. He says the Treasury has already received more than £8bn from them in return for the support it gave. The 50% tax on bank bonuses - announced in the pre-Budget report last year - has also raised more than £2bn so far - more than predicted.

Steve Schifferes
1200 From Prof Steve Schifferes, City University: Chancellor reassures City by saying that any spending boosts for business will be paid for by a one-off tax on City bonuses and not add to the long-term deficit.

1237 "Our economy is at a crossroads" and this Budget will set out "a route to long-term recovery", Mr Darling says. At its heart is a package to invest in small and medium-sized businesses and jobs, he adds.

1236 Mr Darling starts by talking about the global financial crisis and the tough decisions it left the government facing. He says "the record shows the right calls were made". Recession has not become depression, unemployment is lower than feared, "but the recovery is still in its infancy" and the task now is to find a way to bring down borrowing without killing it off altogether.

Iain Watson
1236 From BBC political correspondent Iain Watson: Following a lively and highly partisan PMQs, the chancellor now has to carry out a difficult balancing act. He has already signalled that this won't be a giveaway budget as, with a huge deficit, he really has nothing to give away. But he's also mindful that too much talk of austerity could send voters who are wary of cuts in public spending scurrying away from Labour's banner. So he will move enough money around to hand out some goodies - with stamp duty likely to be abolished for first-time buyers on homes worth less than a quarter of a million pounds. But markets can sometimes damage governments as much, if not more, than the official opposition, so expect some detail on departmental efficiency savings to be outlined as a sign the government is serious about getting the deficit down. The civil service pickets outside the Treasury, to whom David Cameron referred, might well be a sign of things to come - whoever forms the next government.

Alistair Darling
1233 Chancellor Alistair Darling has apparently characterised this Budget as "a Budget for recovery". Well, he's on his feet now so let's see what he has to say….

1232 The Rev Ian Paisley, soon to retire, says it's the last time he will "bother this House and the prime minister" with a question. He expresses his own sympathy for the British soldiers killed in Afghanistan and says there is a "sadness and a dark shadow that lies upon the whole of our world today". Mr Brown says he thinks the whole House will want to pay tribute to Mr Paisley for his long service and work to achieve devolution in Northern Ireland.

1228 A question now from Tory David Amess about a constituent of his who fled from an abusive relationship in Gran Canaria but has since had her children taken into care. Mr Brown says it's not for him to intervene, but he will ask his justice minister to look into it.

Iain Watson
1230 From BBC political correspondent Iain Watson: Nick Clegg's reference to the lobbying scandal - exposed in a TV documentary this week - allows him to attack both Labour and the Conservatives equally and to play to one of his party's "positives" before the election - that the Lib Dems have been less tainted by the expenses furore and can be trusted to clean up the system since they haven't been in power themselves since the war. But as most of the MPs who featured prominently in the TV expose were former Labour ministers, Gordon Brown knows that the incumbent party tends to be hit hardest by these scandals, so he denounced their behaviour as "unacceptable". This is unlikely to have caused him much personal pain as two of the former ministers seen touting for post-election employment tried to unseat him as Labour leader and another was a long-term critic who was close to the former Prime Minister Tony Blair.

1228 Labour MP George Howarth asks what the prime minister thinks the effect would be if cuts were made now in an effort to slash the UK's deficit. Mr Brown says countries all round the world have chosen to press ahead with support for the economy and that the Conservatives stand alone as the only party who seem to disagree with it.

1225 Labour's Stuart Bell asks about news of industrial investment and new jobs on Teesside. Mr Brown says such good news is only possible because the government is prepared to support such investment.

1224 A question now from Labour's Sandra Osborne on the so-called "legal high" mephedrone, which has recently been linked to a number of deaths - will he see it is made illegal? Mr Brown says he is "very concerned" about the harm it could do and the Advisory Council on the Misuse of Drugs has made it an "absolute priority". When it gives advice on what to do, the government will act swiftly, he adds.

Iain Watson
1224 From BBC political correspondent Iain Watson: David Cameron chose not to go headlong into an economic debate and instead tried to portray the prime minister as both evasive and incompetent. He did this not just by attacking the sale of gold "at rock bottom prices" but specifically challenged the prime minister to withdraw an appeal against releasing information on pension funds. If he didn't deeply wound the prime minister, he certainly drew some blood as Gordon Brown sidestepped the question, dealing with the issue only in general terms and - to Labour cheers - repeating the now familiar refrain that the Conservatives got it "wrong, wrong, wrong" on the economy. But he was even moved to remind us twice about the Conservative deputy chairman Lord Ashcroft's non-dom tax status - he thinks this attack plays well with Labour's core voters but his opponents believe it's a sign of political desperation.

1220 Tory Brooks Newmark goes back to the BA dispute - will Mr Brown urge all staff to go back to work this weekend? Yes, and I have done so repeatedly, says the PM.

tweet
The measure of today's Budget won't be the big numbers on the deficit. It will be its approach to the poorest people in the poorest places.
juliandobson on Twitter

1220 Conservative Graham Brady asks Mr Brown what he would "most like to be remembered for". He gets very short shrift - "Winning the next election," the PM replies.

1219 Conservative Mark Pritchard asks the PM to guarantee that no Labour MP caught up in the lobbying scandal will he given a peerage. Laughing, Mr Brown says: "Talk about an own goal". He doesn't answer Mr Pritchard's question but takes a dig over Lord Ashcroft instead.

Nick Clegg
1216 Lib Dem leader Nick Clegg gets up to ask about the lobbying row and claims both the Tories and Labour have blocked his party's efforts to clean up Parliament. He's barely audible over the jeers in the House. Will this Parliament go down in history as the most corrupt ever, Mr Clegg asks. Mr Brown replies by listing a series of improvements he is making or has made to the system.

1214 Now an easier question from Labour's Fraser Kemp about electric cars. Will there be more support from government for people who want to switch to using them? In answer, the prime minister says new investment by Nissan to build these cars was only possible under Labour - the Tories would have withdrawn it.

1212 "How long are we going to have to wait until we can get rid of this useless bunch of ministers?" asks Mr Cameron. "The cab meter's ticking," he says, in an apparent reference to former minister Stephen Byers' recent comments to an undercover reporter. "Tell us when the election will be," Mr Cameron adds. Unsurprisingly, he doesn't get an answer to that.

1211 Mr Brown says: "I'm happy for everything in my record to be published". But, he asks, will Mr Cameron tell the country what really happened with the Lord Ashcroft affair?

1210 Mr Cameron is now pursuing a line of question about efforts made by the government to keep Treasury information about the sale of Britain's gold secret. Mr Brown says this is a matter between the Treasury and the Information Commissioner's office - something that is met by jeers. The PM attacks Mr Cameron for having no serious policies to help people struggling in Britain today.

tweet
Getting ready for #Budget speech by Mr Darling at 12.30pm - think I may go buy loads of booze, fags and fill the car up before it rises!
BlackpoolCallum on Twitter

1208 Mr Cameron briefly mentions the news that he is to become a father again in September. He says most of the texts and e-mails he has received in congratulation seemed to focus on the question "how do you find the time?"

David Cameron
1207 David Cameron is on his feet for his questions, but first pays tribute to Britain's latest Afghanistan casualty. The Tory leader says he has a simple question to start with - does the PM think civil servants - currently on strike and protesting outside Parliament - should cross the picket line and go to work? This harks back to last week's PM's questions when Mr Cameron tried to get Mr Brown to encourage British Airway workers to cross their own picket line.

Gordon Brown
1205 Mr Brown begins by paying tribute to the latest British soldier to die in Afghanistan. He is then asked by Conservative Michael Penning about the issue of defence spending - something the PM admitted making a mistake about in his evidence to the Iraq inquiry during last week's PMQs. Mr Brown says he realised the error when he read the transcript of his evidence, but stresses again that no urgent request from the Ministry of Defence was ever turned down.

e-mail sent in by reader
Is the chancellor going to give people on a low income, who rely on their cars, a break and decrease the amount of tax and fuel surcharges for once?
Tim Clark, Aldershot, UK - via BBC Have Your Say

1202 Right we're crossing over to the Commons now, Gordon Brown is in place and ready to go.

1202 Former home secretary Jacqui Smith tells the BBC she wants to see a focus on fairness for middle-income families in the Budget, something, she adds, the country wouldn't get from the Tories. Unsurprisingly, former Tory leader Iain Duncan Smith disagrees - he things the economy has "collapsed" under Labour. For his part, Charles Kennedy, ex-Liberal Democrat chief, says there's "an air of unreality" about today because "this Budget isn't going to see the legislative light of day" because of the impending election.

1201 One thing that's worth noting… Mr Darling had to make his way through protests held by striking civil servants in order to reach the Commons today. They have walked out in a row over redundancy pay and some chanted "Shame on you" as the chancellor left Downing Street.

1200 Robert Peston thinks we will find out the scale of the efficiency savings that individual government departments are going to have to make. Specific programme cuts, on the other hand, are likely to remain largely a mystery.

Iain Watson
1158 From BBC political correspondent Iain Watson: This could well be the penultimate prime minister's questions before polling day, and will certainly be the curtain-raiser for the last Budget before the election. So expect the session to be dominated by plenty of yah-boo politics and lots of economics. Gordon Brown will no doubt insist the government got just about everything right in tackling the recession and that the Conservatives, inexperienced and committed to early cuts in public spending, would wreck a fragile recovery. David Cameron is likely to paint a rather different picture of Labour's stewardship of the economy, blaming them for presiding over the biggest post-war budget deficit and potentially putting at risk Britain's international credit rating. Nick Clegg is likely to accuse the other parties of getting into an argument about when to cut spending, rather than what to cut - and will suggest they should be more honest with voters ahead of the election on where the axe would fall afterwards, if the deficit is to be brought down. For all the recent juicy scandals over MPs' expenses, and the competing promises to invest in a "greener" future not only prime minister's questions but the election debate is likely to be dominated by the economy where even relatively small divisions will be magnified, as polls still point to the possibility of a hung parliament and each party is keen to get its own distinctive message through to a sceptical electorate who have been subjected to tough times.

Stephanie Flanders
1152 Economics editor Stephanie Flanders says that when you look closely at the numbers there actually isn't much difference between the three main political parties. The government says don't cut now, but in fact it is withdrawing considerable fiscal stimulus this year. The Tories, meanwhile, say they want to cut sooner than Labour, but the gap in rhetoric between Mr Osborne and Mr Darling is actually much bigger than the gap between their practical plans, she says.

1150 Our correspondent Naga Munchetty is in the City of London. Rob Kitchin, from firm BCG Partners, tells her the financial sector wants to see a tough "head-on" plan to deal with the country's deficit and calm the markets. But he says he fears it might just a party political broadcast for the Labour Party.

1147 The BBC's Giles Dilnot is in Dudley in the West Midlands, which has been particularly badly hit in the recession. Mike Dell, from the local chamber of commerce, explains what he would like to see in the Budget - top of the list for him, and probably all businesses, is to have the planned National Insurance hike, due in 2011, scrapped.

Robert Peston
1145 BBC business editor Robert Peston says he's most interested in what the chancellor is going to demand from the banks which were bailed out by the government. We expect him to make it a requirement for them to give everyone in the UK a bank account. He could also outline new taxes on bank profits and measures to force banks to lend more to small and medium-sized businesses.

Nick Robinson
1144 On BBC Two's Daily Politics BBC political editor Nick Robinson says the message the chancellor wants to deliver is "steady as she goes" - "we've made the right decisions to get us through the recession, now here are the right ones for the recovery".

1143 In terms of PM's questions, might we get a relatively quiet session given the serious business of the Budget coming next? Maybe not. Strikes could feature heavily, with BA cabin crew due out again at the weekend weekend, and votes by British Gas staff and railway signal workers in favour of industrial action taken in the last few days. There may also be some mention of the lobbying row which has seen three former Labour minister suspended from the parliamentary party.

1141 An amusing anecdote has come to us about what happened when Mr Darling met the rest of the cabinet to explain his Budget. He apparently told colleagues that while he was preparing it a press report was given to him saying that the North Korean finance minister had been executed by firing squad. He said he hoped that wouldn't be his fate too…

Beer
1139 The BBC has also received word on a traditional Budget favourite - the "sin tax" on alcohol. We understand the chancellor plans to significantly increase the duty on strong ciders and "alcopops" - which will raise money and hopefully cut binge drinking by young people. Other alcohol duties are also expected to go up.

House
1137 A few titbits have come to us this morning via the Westminster grapevine. Stamp duty for first-time buyers purchasing homes worth up to £250,000 looks set to be scrapped. We also hear that the planned 3p rise in fuel duty - scheduled to hit next month - could be introduced in stages instead in order to soften the blow.

1135 There's been lots of speculation about what we're going to see today. Most experts seem to think we're unlikely to find out much more about spending cuts and Mr Darling himself has ruled out both a "giveaway" Budget and a rise in VAT.

1133 We will cross to the House of Commons for prime minister's questions at 1200 GMT. Once Gordon Brown has had his weekly grilling, Chancellor Alistair Darling will take centre stage at 1230 GMT and begin delivering the Budget.

1130 Hello and welcome to our live coverage of the 2010 Budget and, before that, prime minister's questions. We'll be bringing you analysis from our correspondents, reaction from the political parties and a selection of your e-mails and Twitter contributions.

I LOL'd in shock at the cider...

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Wed Mar 24, 2010 1:20 pm
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tombolt wrote:
Linux_User wrote:
10% ABOVE inflation duty increase on cider? What a frakkin' thieving git! :evil: :evil:


It's because cider's always been less than other drinks and now it's becoming very popular.


And now fckin expensive. It's already £2 for a 500ml bottle FFS...

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Wed Mar 24, 2010 1:20 pm
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There goes Magners profits ;) ;)

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Wed Mar 24, 2010 1:22 pm
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From Julia Goldsworthy MP:

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p141 red book confirms that income tax starting allowance is frozen - a stealth tax on the lowest incomes. #budget2010

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Personally I want to see the personal allowance raised to £10,000 so that it's the worst off who benefit most, rather than cutting the basic rate of income tax.

Yes but the basic and higher rates need to go up as well. Though that could be offset by abolishing lots of stealth taxes that hit the lower paid more than the rich.

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Amnesia10 wrote:
Linux_User wrote:
Personally I want to see the personal allowance raised to £10,000 so that it's the worst off who benefit most, rather than cutting the basic rate of income tax.

Yes but the basic and higher rates need to go up as well. Though that could be offset by abolishing lots of stealth taxes that hit the lower paid more than the rich.


I agree. For example, I would support a rise in income tax to fund a reduction in VAT.

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Wed Mar 24, 2010 2:52 pm
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Linux_User wrote:
I agree. For example, I would support a rise in income tax to fund a reduction in VAT.


Definitely. VAT is a tax that affects the poor far more than it affects the rich, as they use vastly more of their income for purchasing things.

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