Taxing Economy

Blimey, it's been a while.

Someone said on the news tonight that due to the economic slowdown in the high streets, government VAT revenues are well down, contributing to the massive debt that the UK faces now and over the next few years.

Is now the time to abolish VAT then?

Sounds a bit counterintuitive I guess, but if the money were charged to income tax instead of what we spend our money on in the shops, the government would ensure a more constant (and probably higher) income. And while people would have a little less to spend, prices would be lower and things would feel more affordable, perhaps giving purchasing a shot in the arm that it desperately needs.

You could even go really left wing and charge the difference just to the super rich, but I guess for many that might be a bridge too far, except Lib Dems.

I'm probably being naive, and I'm no economist (before you say it!), but can anyone see why this wouldn't work?