Apart from the fact that, in your missive above, you have talked about taxes other than VAT, the simple fact is this.
If VAT goes up, people on low and fixed incomes will find that many everyday items will become more difficult to afford.
If you've only got £20 a week to spend on 'stuff' and VAT rises by, say, 2.5%, you'll have 2.5% less to spend on what might be essential stuff.
If you've got £200 a week to spend on stuff, your essential stuff will still cost you 2.5% more but you've got much more room for maneouvre.
The economy thrives just as much on people with low incomes buying stuff as it does on people with shedloads of money to spend. All the time we all spend, we're all wealth providers.