Direct Democracy proposal for Economics

VAT

The People's Administration believes that the coalition's increase in Value Added Tax from 17.5% to 20% will cost the UK economy more than it will bring in and will therefore amount to a net loss.

For example, within the UK tourism industry, revenues will be lost as foreign holiday makers choose destinations other than the UK - even choosing to stay in the same hotels that they would have if coming to the UK. Services offered by companies operating in the UK will see a transfer of trade going directly to their foreign operations and so it is the UK economy that will lose out - not the tour operators or the hotels.

The UK tourism industry has told the coalition that the increase in VAT has potentially cost approx. 1/4 M UK jobs and that this probably amounts to a net loss in the UK economy but the issue has been brushed aside.

Increasing VAT also increases inflation as prices for food and fuel rise, in turn forcing the Bank of England to increase its interest rates. As wages do not rise in line with inflation, the cost of living then also rises and so any increases in VAT need to factor in any potential net losses so as to asses the overall viability.

Should the People's Administration install direct democracy, we propose to consult heavily with the IFS and others regarding all aspects of the UK tax system.

Voting for direct democracy outside a general election

Direct Democracy - Audio

It is up to us, the people [not the politicians] to use the power that we have always had, to choose to implement direct democracy as soon as possible.

This is not a protest campaign.

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Vote legitimately for a peaceful and structured UK reform to direct democracy now simply by following the People's Administration's Direct Democracy Twitter blog and when numbers reach a point of critical mass, we'll do the rest.

Follow: @self_rule

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