Paisley opposes VAT rise

The local Member of Parliament has outlined his opposition to the plans of the Tory/Lib Dem government to increase the rate of VAT. He said this tax hike would hurt the least well off in our society.

Explaining his reasons for voting against the Tory tax rise, Ian Paisley MP said:

“There are areas that I support within the budget such as the reinstatement of the earnings link for state pensions and that the pay freeze will not apply to the lowest paid workers.

“However, that is outweighed by the plans the government has to hurt the most vulnerable in our society. Hard working families and people on lower incomes will be made to suffer through the rise in VAT and the freeze on Child Benefit.VAT is a form of taxation that hurts those on the lowest incomes.

“Arguments put forward by the government about who will pay more in cash terms provide cold comfort for those who will be hit hardest by this measure.

“The government is correct to say that a person with an income of 100,000 a year will pay more in cash terms than someone on 20,000 as a consequence of the VAT rise. That isn’t the point. The point is the percentage of someone’s income taken up by this tax hike. A VAT hike won’t cause undue suffering to an individual who has lots of disposable income, but for someone living from month to month, trying their best to get by on limited means, it will have a big impact.

“Research by the Institute for Fiscal Studies shows that the increase in VAT will hit married couples with children and married couples who are elderly hardest. I will not be supporting measures that will hurt those already struggling to make ends meet in these difficult times.”