Wednesday, 5 January 2011

VAT and Miliband's arithmetic

Adrian Sanders, MP for Torbay, writes: "Ed Miliband claims a 2.5% increase in VAT will cost the average family £390. To reach that figure a family would need to spend almost £10,000 on goods that attract VAT. VAT isn't progressive, but it is certainly not the regressive tax some make it out to be given the largest part of the expenditure of low income families is on food, housing and children's clothes that are all exempt."

No comments: