VAT the hell?

As of the end of October this year Irish VAT receipts were down for the fifth consecutive month making them €383 million or 4.8% below target on a cumulative basis. Which is why I am still amazed that our esteemed Minister for Finance, Michael Noonan, has not come out and corrected the obvious reporting error that he will be increasing the top rate of VAT by 2% as a means of generating an extra €670 million in revenue.
I say it has to be a reporting error, as for it to be true Michael Noonan would have to believe that making retail prices more expensive during a time of economic stress will lead consumers to spend more. Retail spending to the year ending in September 2011 was down by 3.9% and only a drug addled lunatic could possibly think that a rise in prices will reverse this.
Clearly he meant that he would be reducing VAT (top rate or otherwise) by 2% leading to a drop in retail prices, an increase in domestic demand, an increase in employment in the retail sector thus an increase in income tax receipts to offset the decreased VAT income. Indeed the VAT receipts would probably hold steady as sales would increase and the newly employed workers in the retail sector would themselves be out spending their newly earned wages.
So come on Michael please say it ain't so and you really meant decrease all along. If not, well it's just too depressing to contemplate..