The Budget
Out of context: Reply #13
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- raf0
Lower corporate tax – good.
Higher VAT – very bad.All they will achieve with the VAT rise is they will suffocate the economy even further. They will collect less tax – this is economy 101.
People spending less on goods and services due to tax being higher -> less tax collected.
Less goods and services sold -> less work for people producing and selling. Less work -> less money people have to spend -> less spending -> less tax collected. Also, higher welfare costs.UK grabbed a sizable chunk of Irish economy when they lowered their vat to 15% for a year – everyone went either online or to the Northern Ireland border when doing serious shopping last year. Computers, furniture, cars... It's hard to find an Irish person who did not shop in the UK in 2009.
Those days are over I guess.