Tax Hike on the Table in the UK

Politicians in the UK are starting to give consideration to raising the VAT (sales tax) rate, from 17.5% to 20%.

"A rise in VAT is looming whichever party wins the general election, as Labour and the Conservatives draw up plans to balance Britain’s books.

Alistair Darling and George Osborne, the Shadow Chancellor, are both considering raising VAT to as high as 20 per cent — the European average — from the current rate of 17.5 per cent, The Times has learnt."

Why is it that politicians think that raising taxes (initial estimates are £13 billion in this case) is just what a faltering economy needs? And don't think this is something that won't or can't happen in the States - there are many proposals being considered that would do just that.

Instead of raising the VAT rate, cutting the VAT rate would allow citizens to keep more of their own hard-earned money, and enable them to either spend, save, or invest it, which in any case would enable it to be directed in a much more rational, moral, and economically efficient manner.