BBC BLOGS - Justin Webb's America
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Taxing issues

Justin Webb | 01:37 UK time, Monday, 1 December 2008

The decision to reduce VAT in the UK - and the allegations that it might have risen as well - highlight for me the sensible American practice of selling goods and services (mostly) for an amount that is the genuine price and then adding the sales tax afterwards so that you clearly see how much (or how little) it is. Inclusive prices are convenient but obscure the tax issue.

Odd if the UK becomes a high tax society again in the next few years - will Obama go down the same route? Printing money and cutting spending are the only other choices and neither seems like a long term winner for him. The fuss over Hillary (to be confirmed today) will be as nothing when the immediate crisis is over and the books need to be balanced...

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