Jump to content
House Price Crash Forum
cashinmattress

Blow To Alistair Darling As Tax Take Falls 20%

Recommended Posts

Blow to Alistair Darling as tax take falls 20%

The tax take has collapsed by 20% on last year — three times as much as Alistair Darling, the chancellor, forecast in this year’s budget.

Official figures show that revenue raised from businesses has fallen dramatically, with last month’s corporation tax receipts sinking to £6.1 billion — 38% down on the same time last year.

Meanwhile, the Treasury’s Vat take during July plunged 34%, from £10.5 billion last year to £6.9 billion, a collapse only partly explained by the government’s decision to cut the sales tax by 2.5% last year.

The collapsing revenues come amid conflicting signals on the health of the global economy. Home sales in America jumped at the fastest rate in 10 years in July, according to figures released last Friday by the National Association of Realtors. The news spurred rallies in share prices worldwide.

The FTSE 100 index, which has soared almost 40% since its low point in March, closed at a 10-month high of 4,850 last week. Some fund managers believe that it could break through the psychologically important 5,000 level this week.

The Dow Jones Industrial Average ended the week up 184.56 points, or 1.67%, at 9,505 — its highest point this year and a rise of 45% from March.

The housing news came as central bankers meeting at the Federal Reserve’s annual retreat in Jackson Hole, Wyoming, expressed cautiously optimistic views on the global economy.

Ben Bernanke, the Fed’s chairman, told the meeting: “After contracting sharply over the past year, economic activity appears to be levelling out, both in the US and abroad, and the prospects for a return to growth in the next year appear good.â€

Forthcoming UK figures may show that the economy performed slightly better than initially expected in the second quarter. Some economists believe revised figures due on Friday will show it shrinking by 0.7%, rather than the 0.8% that was originally estimated.

Gerard Lyons, chief economist at Standard Chartered, said: “Even with a small upward revision, the data will confirm the economy was hit very hard in the first half of the year, justifying fully the policy stimulus that has taken place.â€

With unemployment widely expected to rise into next year, revenue from income tax and National Insurance is forecast to fall this year. Income-tax receipts fell to £15 billion last month, down from £17.6 billion in July 2008.

Ross Walker, chief economist at Royal Bank of Scotland, described the state of the public finances as “horribleâ€. In all, the total core tax take was £39.5 billion in July — down from £49.4 billion last year.

The collapse in receipts will strengthen calls for urgent cuts to public spending and rises in taxes.

The Institute for Fiscal Studies said that forecasts published alongside the budget showed that the Treasury expected its tax take to fall by 7.5% in 2009-10.

Just imagine what the tax take in 2010 will look like, and right through to 2015 and beyond!

I can only conclude that this fanny chancellor is either taking it up the ass from Gordon's greasy propaganda meat stick, or he is completely incompetent. These out to lunch 'forecasts' are making the UK look very bad to the rest of the world, bordering on Zimbabwe bad.

This on top of record deficit and public sector borrowing, and the bailouts, and the personal debt-load.

Shit sandwich.

Meh.

Share this post


Link to post
Share on other sites

I am an utter idiot, and this comes as no surprise. I've noticed a lot of other idiots who will not be surprised either.

Therefore, one can only conclude that either this is a random event where the idiots were proved right by chance, or that the experts are lying. I suppose we should look to see whether this "surprise" can be dismissed as an outlier, or whether the predictions of the idiots are actually within the reported data.

:(

Do we have a liar smiley?

Share this post


Link to post
Share on other sites

Isn't this simply a case of finding out which Emperor has no clothes?

In as much as the Emperors are the countries "all in this together".

Had Brown, Darling and King come clean early on and revealed the true scale of the problems and how they genuinely expected them to progress the only effect of that would have been to accelerate and magnify the problem.

So Darling has to come out with fake figures in an effort to try and keep things together, in precisely the same way that mortgage lenders had to keep on saying "there will be no crash".

It's making Brown and Darling look even more ridiculous with each passing day as each new nugget of fact is digested.

Eventually, something will have to give. Specifically, Britain's financial position and standing in the world, as the other countries recognise the true scale of the problem facing Britain, have a giggle at Brown's expense, and get on with mending their countries.

Share this post


Link to post
Share on other sites
[Just imagine what the tax take in 2010 will look like, and right through to 2015 and beyond!

I despise this NuLab government so much that I turn down overtime so I don't contribute to the GDP & tax income.

Now that's ******ed up ;(

Share this post


Link to post
Share on other sites

They are threatening another "If your an offshore A/C we Rape your dog if you owe us any cash" sort of thing. Thing is by the time they gone though the books to see whom owes what they be out of power. I could see them doing it out of spite but likely a number of MP's etc would get dragged up.

Nope they leave it for the Tory goverment, only to find it won't touch it with a pole.

Mike

Share this post


Link to post
Share on other sites
I despise this NuLab government so much that I turn down overtime so I don't contribute to the GDP & tax income.

Now that's ******ed up ;(

Personally - I'd rather give my money to support the baby P killers and their appeals for more lenient sentences then give it to the government.....

oh wait - the government says I already am,

eeerm......

Edited by sbn

Share this post


Link to post
Share on other sites

Oh BTW - there might already be a thread on this, but can I just say that tonight, I actually warmed a little bit to Colonel Gadaffi.

He extended his personal thanks to the cyclops for securing the release of his buddy.

Well done Mr Gadaffi!

Share this post


Link to post
Share on other sites
I despise this NuLab government so much that I turn down overtime so I don't contribute to the GDP & tax income.

Now that's ******ed up ;(

No its a natural response to socialism.Myself ive been banging a huge wedge of my income into foreign shares etc rather than spend it,and although it was an investment choice there was also some of your thinking involved.

Share this post


Link to post
Share on other sites
I am an utter idiot, and this comes as no surprise. I've noticed a lot of other idiots who will not be surprised either.

Therefore, one can only conclude that either this is a random event where the idiots were proved right by chance, or that the experts are lying. I suppose we should look to see whether this "surprise" can be dismissed as an outlier, or whether the predictions of the idiots are actually within the reported data.

:(

Do we have a liar smiley?

It's amazing that people with no real training of complex economic thoery appear to be able to out think the best of the best in the subject.

Clearly we all should have a go on the lottery with this sort of luck we are certain to pick the magic winning numbers.

Share this post


Link to post
Share on other sites
It's amazing that people with no real training of complex economic thoery appear to be able to out think the best of the best in the subject.

Clearly we all should have a go on the lottery with this sort of luck we are certain to pick the magic winning numbers.

You don't need economic training to work out the the money coming in must at least equal the money going out.

Share this post


Link to post
Share on other sites
You don't need economic training to work out the the money coming in must at least equal the money going out.

Yes but you need at least a PHD in economics to work at the BoE.

But once you've had the specialist economic training at the Treasury you can then fudge the figures and sort of make up the money coming in equals whats going out by working out that due to growth the tax take will increase balancing the books at some distant point in the future.

Share this post


Link to post
Share on other sites
Yes but you need at least a PHD in economics to work at the BoE.

But once you've had the specialist economic training at the Treasury you can then fudge the figures and sort of make up the money coming in equals whats going out by working out that due to growth the tax take will increase balancing the books at some distant point in the future.

Naw.

Just get the tools of the central bank trade and you are sorted...

360781.jpg

Ball%20Gag%20Pink%20Webbing.jpg

250.jpg

magic-8-ball.jpg

11959168.jpg

ES1180-Dahle-20514-Office-Shredder-md.jpg

Rohypnol.gif

news-printing-press.jpg

3B620.jpg

(in no particular order BTW)

Share this post


Link to post
Share on other sites
liar-animated-animation-liar-smiley-emoticon-000361-large.gif

So if we are paying 40% tax now, and needed to pay an extra 12% for the bailouts. Add in this 20% and that's.......

oh.....

Not going to happen.

:)

Share this post


Link to post
Share on other sites

From what i can gather, the chancelor has got all his predictions wrong, it makes you wonder does David Cameron really want the job of sorting the almighty mess that he will have to deal with once he takes over next May.

Share this post


Link to post
Share on other sites

Twenty percent? That does mean we are absolutely toasted doesn't it? If we have a weak anemic recovery now, we're still borrowing absolutely shed loads and we will have to cut spending at some point in the forseeable future massively.

Either that or we'll be servicing debt all our lives. Or both.

Christ. And house prices are rising, and people think things will soon start getting better.

Share this post


Link to post
Share on other sites
Twenty percent? That does mean we are absolutely toasted doesn't it? If we have a weak anemic recovery now, we're still borrowing absolutely shed loads and we will have to cut spending at some point in the forseeable future massively.

Either that or we'll be servicing debt all our lives. Or both.

Christ. And house prices are rising, and people think things will soon start getting better.

Did I mention state failure yet?

Share this post


Link to post
Share on other sites
Twenty percent? That does mean we are absolutely toasted doesn't it? If we have a weak anemic recovery now, we're still borrowing absolutely shed loads and we will have to cut spending at some point in the forseeable future massively.

Either that or we'll be servicing debt all our lives. Or both.

Christ. And house prices are rising, and people think things will soon start getting better.

The market still has a strong appetite for Treasuries. And they are the experts.

Share this post


Link to post
Share on other sites
The BoE still has a strong appetite for Treasuries. And they are the experts.

Fixed.

Share this post


Link to post
Share on other sites
The price determines value, not who is buying them.

I'm just pointing out that the BoE is currently a large (the largest) buyer in the market.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   291 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.