9-9-9 and the UK

I just returned from London where one of the topics du jour was Herman Cain.   There is a great deal of fascination about a man about whom little is known on the international stage.   However his 9-9-9- proposal is generating a great deal of debate as to whether it would be feasible.  However, no one can forget that the UK in 1973, under a Conservative Government, added a Value Added Tax (in essence a national sales tax) as a new source of revenue to help offset the cost of the National Health Service and other expenditures. The people were assured that it would never exceed 10%; as a matter of fact in 1974 the rate was pegged at 8%.   As part of the package personal income tax rates were decreased. However by 1979 (a mere five years later) and under a Labour Government, the rate was raised to 15%.  The personal income tax rates were also increased. Today the VAT is at 20%, the personal income tax rates are: 40% of taxable income above...(Read Full Post)