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[Nickbat]

The EC is also looking to eliminate many reduced VAT rate exemptions in an attempt to impose a harmonised fiscal regime across all 27 member states, and help countries consolidate their financial position in the face of the current Euro crisis.

‘For the UK, this means its cherished zero VAT rating of food and other goods, such as books and newspapers, could be lost.  ‘Instead, it would be forced to raise the VAT rates on household food spend to the standard VAT rate to 20per cent.’


http://www.thisismoney.co.uk/money/news/article-2081181/Radical-VAT-shake-European-Union-cost-families-800-year.html

 

[albitz]

Hopefully the whole farce that is the EU will fall apart before they get it through the many layers of beauracratic commitees it will surely have to pass through before becoming reality.

[Varche]

Portugal has 23% VAT now as part of their austerity measures and accepting their bale out.

I can see it won't be long before the Merkosy lot in Brussels make the rest of the Eurozone raise theirs too. Grim times ahead for the poor and it will drivbe the Eurozone into real recession. lose lose situation. The only alternative is to tax the rich and tax the banks. That is hardly going to be popular or a vote winner or a party funds winner....................

Britain may just be able to fend off such Brussels led harmonisation of VAT and taxes. Maybe the banks and hedge funds will volunteer more of their fat profits to stave off VAT increases for everyone. mmm some chance.

[albitz]

Have you had a look at the profits in the financial sector recently and compared them to a few years ago Varche ?
They are in pretty deep trouble.The golden goose isnt laying too many eggs these days.
They are also being taxed at a much higher rate than they ever have been previously.They made contributions to the exchequer of mindboggling sums of money in the boom,but unfortunately our financial genius in number 11 wasted every last penny of it.
National economies have been crippled by Govts. spending huge sums which the countries havent got. Most of the spending has been on ill considered schemes, simply throwing money at percieved problems (NHS for example) and bribing voters with stupid welfare schemes. Thats where the problems stem from and therefore is where the answers to the problems lie.
Sensible levels of public spending coupled with a tax regime geared to businesses being able to make good profits, which will allow them to be competitive and employ people in real wealth creating jobs - no other way that I can see.

[Guinney1971]

Have you had a look at the profits in the financial sector recently and compared them to a few years ago Varche ?
They are in pretty deep trouble.The golden goose isnt laying too many eggs these days.
They are also being taxed at a much higher rate than they ever have been previously.They made contributions to the exchequer of mindboggling sums of money in the boom,but unfortunately our financial genius in number 11 wasted every last penny of it.
National economies have been crippled by Govts. spending huge sums which the countries havent got. Most of the spending has been on ill considered schemes, simply throwing money at percieved problems (NHS for example) and bribing voters with stupid welfare schemes. Thats where the problems stem from and therefore is where the answers to the problems lie.
Sensible levels of public spending coupled with a tax regime geared to businesses being able to make good profits, which will allow them to be competitive and employ people in real wealth creating jobs - no other way that I can see.

Please stand for parliament so that I can vote for you   

[Varche]

I'm sure the banking sector is making less than a few years ago. Those were the good times. Now the debts have to be paid off. Perhaps I am seeing this from inside a Eurozone country perspective where things are quite dire and going to undoubtedly get worse. However in Britain the picture isn't exactly rosy. It only needs Standard and Poor etc to make some downgrades and Britains borrowing (also at astronomical levels) will be untenable like Italy. Better to pay more off now and maintain the good(sic) credit rating. The banks in Britain aren't doing that badly if Europe wanted a piece of their action, Cameron said No to the Tobin tax and maybe marginalised Britain as a result. My point is that a lot of poor people (and there are a surprisingly large amount in Britain bearing in mind it is the 7th largest economny in the world) cannot afford more. Making the poor suffer will just create more problems like dependence on social, crime, drugs and so on.

As far as the NHS is concerned. Has anyone been saked for this failed 11 BILLION computerisation project. NO in a word. In fact the NHS paid 250,000 in bonuses to 80 people. More reward for failure like we did with the banking chiefs. Of greater worry is that the US firm that has the contract for the NHS wants more money (another billion?) despite it failing. Worse is that the same US company also has major contracts with four or five other Uk firms including at least one public sector outfit. Will they also fail at great expense.

Rail fares going up 6%(average) in bad times. What are the government thinking allowing that to happen.? The TOCs etc should be forced to make economies like other real businesses and have zero percent rises.

Hang on a minute 23% Vat on everything problem solved................

[Rods2]

Have you had a look at the profits in the financial sector recently and compared them to a few years ago Varche ?
They are in pretty deep trouble.The golden goose isnt laying too many eggs these days.
They are also being taxed at a much higher rate than they ever have been previously.They made contributions to the exchequer of mindboggling sums of money in the boom,but unfortunately our financial genius in number 11 wasted every last penny of it.
National economies have been crippled by Govts. spending huge sums which the countries havent got. Most of the spending has been on ill considered schemes, simply throwing money at percieved problems (NHS for example) and bribing voters with stupid welfare schemes. Thats where the problems stem from and therefore is where the answers to the problems lie.
Sensible levels of public spending coupled with a tax regime geared to businesses being able to make good profits, which will allow them to be competitive and employ people in real wealth creating jobs - no other way that I can see.

Well said Albs. 

Banks were the problem in 2008, along with the imposed US Government social lending policies (blame Clinton). Sovereign debt and the Eurozone straight jacket for the PIIGS is now the 2011/2012 problem. If Greece had defaulted instead of the bailout in 2010 and Eurozone Governments had cut spending and deficits then, we would have had a softer landing, than we are about to get. Think 200mph at a 200 year old oak tree and you will begin to get the current picture.

Hungary is about to default due to a failed bond issue. It is in dire trouble with Euro and Swiss Franc mortgages and business loans crippling their economy where their currency the Forint has significantly fallen against these over the last 3 years and has fallen further in the last few days.

The Italian bank Unicredit is in big trouble with its Greek and Austrian subsidiaries, with major losses in the Italian bond market and big exposure, to yes you've guessed it Euro and Swiss Franc loans in Eastern Europe. They are trying to raise €7.5bn to 'strengthen their balance sheet', ie stop themselves from requiring a Government bailout. They had to suspend their shares yesterday.

Credit Agricole in France has just successfully raised €1.5bn to strengthen their balance sheet, good you might say, except they have given that with another €500m (€2bn) to their Greek subsidiary bank to keep it going. The Greek economy is shrinking faster than a pair of gonads in ice water and warning if the second bailout is not approved they will have to default and leave the Euro (Which will lead to much short term pain, but to a long term benefit, much like when we left ERM).

In the global banking game of pass the debt, who knows who will be left holding which parcel when the music stops, and whether they have the reserves to survive, but this might give clue.

http://www.businessinsider.com/european-banks-praying-for-solution-euro-crisis-2011-11

If you have got significant savings, now would be a good time to review where they are held. The Government guarantee scheme covers £83,000 per person per financial institution. If you have savings, like an ISA or cash held in a SIPP pension in the same institution these will all go towards the total.

This is a very good analysis on EU collateral contagion:

http://www.zerohedge.com/news/why-ecbs-ltro-wont-stop-collateral-contagion

and for those that are interested several links on current news:

http://www.mindfulmoney.co.uk/wp/shaun-richards/the-fomc-is-living-in-a-fantasy-land-whose-dangers-are-highlighted-by-hungary-and-the-euro-zone/
http://www.mindfulmoney.co.uk/wp/shaun-richards/my-thoughts-on-unicredit-and-the-banking-corpses-kept-on-life-support-in-ae-or-emergency-rooms/
http://www.mindfulmoney.co.uk/9525/economic-impact/unicredit-collapse-the-invasion-of-zombie-banks.html?utm_source=Newsletter&utm_medium=05%2F01&utm_campaign=4

[albitz]

Those links will keep me occupied in the wee small hours of my nightshift Rods2. Thanks for another excellent post.

[cem_devecioglu]

our vat ratios are the best

food : all 8%
diamonds : 0%

bast*rds

[Johnny English]

our vat ratios are the best

food : all 8%
diamonds : 0%

bast*rds

Are you aiming Cem that the diamond business is in one jew hand ? 

[Tony H]

our vat ratios are the best

food : all 8%
diamonds : 0%

bast*rds
[/quote


Not quite as good as Blight Cem

Private helecopters VAT = 0%
Luxury yachts        VAT = 0%

[Dishevelled Den]

Have you had a look at the profits in the financial sector recently and compared them to a few years ago Varche ?
They are in pretty deep trouble.The golden goose isnt laying too many eggs these days.
They are also being taxed at a much higher rate than they ever have been previously.They made contributions to the exchequer of mindboggling sums of money in the boom,but unfortunately our financial genius in number 11 wasted every last penny of it.
National economies have been crippled by Govts. spending huge sums which the countries havent got. Most of the spending has been on ill considered schemes, simply throwing money at percieved problems (NHS for example) and bribing voters with stupid welfare schemes. Thats where the problems stem from and therefore is where the answers to the problems lie.
Sensible levels of public spending coupled with a tax regime geared to businesses being able to make good profits, which will allow them to be competitive and employ people in real wealth creating jobs - no other way that I can see.

competitive and employ people in real wealth creating jobs

Providing those jobs do not migrate overseas as the result of the constant search for cheaper labour and lower costs my son.

It would also be nice to believe that those people in this country, who may ultimately benefit from any employment created by such aspirations, are not treated as chattels tied to short term contract work by those employers more interested in a net profit than much else. 

[Rods2]

Can't see how harmonization of rates makes the system more efficient as you still have 27 different VAT collection agencies 1 per country and most countries have multiple vat bands like this country anyway. Unless, the next 'efficiency' stage is for one tax collection agency in Brussels, so they collect it and hand it back to member states.

We all know what we happen then, Merkel and Sarkozy (or their successors) will sort that one out: 40% to Germany, 40% to France and 20% to the rest of the Eurozone to kick the Eurozone crisis can down the road a bit. Oh, and nothing left in the pot for the UK, I'm afraid. Still that's your punishment for vetoing the Tobin tax treaty for the City of London to bank roll the Euro rescue. Got'ya Ha, Ha!!!! 

Tax competition is good as it helps keep tax rates down, different levels of state sales tax in the US seems to work okay.
The biggest barrier to a true single market in Europe is not having a common language like in the US. If you were going to pick a single European language it would make sense to pick the one most spoken as a primary and secondary language in Europe and we all know what that is don't we, yes Russian! English would be the obvious second language and France and the French could have a few concessions like Michelin starred restaurant menus, still written in French. 

Keeping the VAT system as it currently is is vastly more efficient than collecting too much money from the poor and then having a vastly expanded bureaucratic system to give back again. Plus, there are many people that would rather be poor than end up in a world of benefit form filling and if they are self employed, spending half a day on the phone each time their circumstances change, so they and their families would lose out.

It seems to me the consultants who were paid to produce this report were given the efficiency framework by the EU and told to join up the dots.

[cem_devecioglu]

our vat ratios are the best

food : all 8%
diamonds : 0%

bast*rds

Are you aiming Cem that the diamond business is in one jew hand ?   
 

nope..

 

[cem_devecioglu]

our vat ratios are the best

food : all 8%
diamonds : 0%

bast*rds

Not quite as good as Blight Cem

Private helecopters VAT = 0%
Luxury yachts        VAT = 0%

 
it seems that laws and taxes are only for the poor!