Game Retailers Forced to Swallow UK Tax Hike

[Divineirony]

This seems like itll result in job losses as companies get rid of the easiest target to make sure they don't lose money from the vat price hike.

I mean the entire vat rise is stupid anyway increased taxation=decreased spending leading to slowed growth

it might lower the deficit slightly in the short term but it will result in a slowed economy over the long term

 

[Divineirony]

FYI government: YOU CAN'T FIX THE FINANCIAL CRISIS JUST BY TAKING MORE MONEY AWAY FROM YOUR CITIZENS! [sub]Stupid shits.[/sub]

um actually you can...Taxes are a regular and important part of a country and government. Half the reason american has so much debt is because they are borrowing and spending with little to no taxes coming in from their citizens.

No the reason why we are in so much debt is mostly becasue we have idiots in charge that think that you can get your self out of debt by spending more and more money. In reality raising taxes has show time and time again to hurt the economy more then helping.

When you raise taxes you have fewer people going out and spending, just like these idiotic corp. taxes. The more you tax the businesses providing the jobs, the fewer jobs they will be willing to provide. The fewer jobs provided the less net in take in revenues.

Basically if you have a 20% tax one $100. That means the item now costs $120 and only one person buys it. Now the Gov. only gets $20. Drop that down to 5% making it $105. More people will buy the product. All you would need is 4 people to buy it to make up for the tax decrees. With the price drop you will more then likely have more then 4 people purchase it making a higher revenue then the 20% tax.

This model can really be applied to most forums of taxes showing that lower taxes actually produce better tax revenue then higher taxes.

Huge debt is what you get when you have politicians trying to do the work of economists. Well that and idiots with credit cards.

Don't forget the massive bank bailout

 

[Sephiwind]

FYI government: YOU CAN'T FIX THE FINANCIAL CRISIS JUST BY TAKING MORE MONEY AWAY FROM YOUR CITIZENS! [sub]Stupid shits.[/sub]

um actually you can...Taxes are a regular and important part of a country and government. Half the reason american has so much debt is because they are borrowing and spending with little to no taxes coming in from their citizens.

No the reason why we are in so much debt is mostly becasue we have idiots in charge that think that you can get your self out of debt by spending more and more money. In reality raising taxes has show time and time again to hurt the economy more then helping.

When you raise taxes you have fewer people going out and spending, just like these idiotic corp. taxes. The more you tax the businesses providing the jobs, the fewer jobs they will be willing to provide. The fewer jobs provided the less net in take in revenues.

Basically if you have a 20% tax one $100. That means the item now costs $120 and only one person buys it. Now the Gov. only gets $20. Drop that down to 5% making it $105. More people will buy the product. All you would need is 4 people to buy it to make up for the tax decrees. With the price drop you will more then likely have more then 4 people purchase it making a higher revenue then the 20% tax.

This model can really be applied to most forums of taxes showing that lower taxes actually produce better tax revenue then higher taxes.

Huge debt is what you get when you have politicians trying to do the work of economists. Well that and idiots with credit cards.

Don't forget the massive bank bailout

Which is just more of the government thinking that throwing money at it will fix the problem. When you are in debt spending more money will put you into even greater debt. All the bail outs were just a waste that the people will have to pay. Once the tax cuts time out in January and this heath care system goes into full effect in 2012-13 taxes are just going to skyrocket.

 

[GloatingSwine]

I calculate that had retailers passed the VAT increase on, your £39.99 game would cost a grand total of about 84p more (an increase of 2.1%). So, it's really rather small beer.

Wouldn't stop them quietly putting the price up £2.50.