Teen Forums - Teen Chat, Teen Help, Teen Advice & Support

Novanter · 23-09-11, 10:26 AM

Well, just a question:

Which is the ideal level for VAT?

Here, it's 25%, will be 27% from January 1st, which is going to the highest in the world. And, we are not a very developed country (okay, still the 32nd most developed) - so I don't think that it'd be reasonable.

I think, 20% would be okay everywhere. (With reduced rate to 10% on books - educational stuff, foods)

Starry · 23-09-11, 10:58 AM

Where I live, England, I think it is 17.5%! Still high, everyone I know hates VAT! There should be no VAT, but then agan, the country needs it... (I think...)

Ephemeral · 23-09-11, 11:07 AM

The USA doesn't have a VAT. And I think that it really is nation dependent to how much one should charge on that end. One has to take into account shifts in the demand curve and stuff like that. There's a debate going on over here as to whether VAT's actually help solve a national debt crisis effectively and efficiently. Robert J. Samuelson has a good article on how it's not an effective use of taxation.

Poontang · 23-09-11, 11:19 AM

Quote:

Originally Posted by Starry

Where I live, England, I think it is 17.5%! Still high, everyone I know hates VAT! There should be no VAT, but then agan, the country needs it... (I think...)

It's 20 I believe.
20 is fine, higher tax rates on things such as cigarettes I don't care about, wouldn't want much higher than 20 though to be honest. The government doesn't need more than 20.

Novanter · 23-09-11, 11:02 PM

Allan, here this +2% means +150 billion HUF (0,5 million pounds), not sounds much I know, but the debt is 65 million pounds (74% of the Hungarian GDP - We're not a big country) - so it helps to deal with the debt.

But, then again... 27%?!?! Hungary.... pffff.

Ephemeral · 23-09-11, 11:26 PM

Quote:

Originally Posted by Novanter

Allan, here this +2% means +150 billion HUF (0,5 million pounds), not sounds much I know, but the debt is 65 million pounds (74% of the Hungarian GDP - We're not a big country) - so it helps to deal with the debt.

But, then again... 27%?!?! Hungary.... pffff.

Yes. It seems that way. But if the demand curve is shifted too far in because of the tax, then it may not help very much. It's important to consider what the tax does to the economy. Some even argue that it causes the same effects as a price floor on certain items (an effective surplus). So there are theoretical theories against a VAT. I'm not arguing against them but rather pointing out the other side of the story.

Starry · 24-09-11, 02:05 AM

Oh yeah England's 20%, forgot it changed lol...

Novanter · 24-09-11, 09:15 AM

Quote:

Originally Posted by darkness_prevails

Yes. It seems that way. But if the demand curve is shifted too far in because of the tax, then it may not help very much. It's important to consider what the tax does to the economy. Some even argue that it causes the same effects as a price floor on certain items (an effective surplus). So there are theoretical theories against a VAT. I'm not arguing against them but rather pointing out the other side of the story.

I see your point. But I'm still for VAT, since, it's a very important part of 'having the country not in total-debt'. - At least here.

Kryptonite · 24-09-11, 10:10 AM

I recently did a debate speech on VAT, and I found it an interesting idea. I think the otnly thing that would make it effective in the US is if you eliminated income tax. This is pretty much because people always have to buy, and ytou can't really have tax evasion when you buy goods.