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Monkey

Some Thoughts On Vat, What Do You Think

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if they reduce VAT, wont the inflation figues reduce as well? bringing it closer to their targets

ok this will only work for a month or 2 in real terms, but they can keep reporting the MoM, QoQ and keep the illusion going for at least 6 months, that everything is getting better.

it should also make some things cheaper and "may" stimulate a little bit of reckless spending in the retail sector.

or why not raise VAT to 30%, but reduce income tax to 5% flat rate for everyone earning over £12,500 under is 0%, keep NI the same. they might find that people spend more as their disposable income has increased, but claw it back on the "luxury" purchases people use their new found money on.

or reduce Income Tax to 5% for all, keep VAT at 20% and raise IR's to 3%, people wont feel the pich as much as their disposable incomes have increased, savers stop getting shafted, and people spend more in the shops

or am i looking at it worng

Edited by Monkey

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...different people benefit form different options....depends if you save or spend...work or don't work...or have debt or no debt.

We all know what we would prefer....the hard part is getting the balance right....I think the government have got it right...I am confident that things will get better if we stick with the existing plan...no gain without some pain. ;)

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...different people benefit form different options....depends if you save or spend...work or don't work...or have debt or no debt.

We all know what we would prefer....the hard part is getting the balance right....I think the government have got it right...I am confident that things will get better if we stick with the existing plan...no gain without some pain. ;)

but have they.

thinking more about it, reducing Income tax will benifit existing workers by increasing their disposable income.

but it will help get people off benifits (possibly) people would be earning more than they can get from benifits (if you know what i mean) but the prices of what is bought has risen. this assumes that they dont increase benifits.

people would have a false wealth, they would be earning more, but as the price of stuff would rise as well, then they would stand still in actual terms of buying power.

yes there wil lbe loosers, and winners, but i think it would benifit the majority alot.

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but have they.

thinking more about it, reducing Income tax will benifit existing workers by increasing their disposable income.

but it will help get people off benifits (possibly) people would be earning more than they can get from benifits (if you know what i mean) but the prices of what is bought has risen. this assumes that they dont increase benifits.

people would have a false wealth, they would be earning more, but as the price of stuff would rise as well, then they would stand still in actual terms of buying power.

yes there wil lbe loosers, and winners, but i think it would benifit the majority alot.

Getting people off benefits is a good thing...sometimes it is easier said than done, there will always be people on benefits...what the priority should be is to encourage employment/training....incentivise companies to want to create jobs in the UK... get our manufacturing up and running again, making stuff and exporting stuff, investing in our infrastructure and new homes for a growing population......the new personal allowance of being able to earn £10k before paying income tax has got to be a good reason in itself to get people off benefits...helping to make work pay. ;)

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...different people benefit form different options....depends if you save or spend...work or don't work...or have debt or no debt.

We all know what we would prefer....the hard part is getting the balance right....I think the government have got it right...I am confident that things will get better if we stick with the existing plan...no gain without some pain. ;)

+1

I think the markets like the plan and we are now paying less on 10 yr Gilts than at any time in living memory. I think if we still had a socialist style government we would be paying double on our debts as a country.

B)

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1) Reducing VAT, for whatever reason, even if it has nothing to do with liebour, would be seized upon by Liebour as 'we was right'

2) It surely makes sense to put more taxes on consumption and less taxes on production, given they want to 'rebalance' the economy that way.

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Rather than fiddling around the edges with VAT and Income Tax rates, just whack the income tax allowance up to £15 grand and make up the difference in taxes with an annual 5% land value tax.

Takes all the low earners out of income tax completely, saving paperwork, (no more tax credits etc) and gives people a genuine incentive to work. Meanwhile the 5% land value tax will force landlords to compete for tennants, pushing rents down so people don't need to live on housing benefit any more.

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Rather than fiddling around the edges with VAT and Income Tax rates, just whack the income tax allowance up to £15 grand and make up the difference in taxes with an annual 5% land value tax.

Takes all the low earners out of income tax completely, saving paperwork, (no more tax credits etc) and gives people a genuine incentive to work. Meanwhile the 5% land value tax will force landlords to compete for tennants, pushing rents down so people don't need to live on housing benefit any more.

Socialism is alive and well I see!

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Getting people off benefits is a good thing...sometimes it is easier said than done, there will always be people on benefits...what the priority should be is to encourage employment/training....incentivise companies to want to create jobs in the UK... get our manufacturing up and running again, making stuff and exporting stuff, investing in our infrastructure and new homes for a growing population......the new personal allowance of being able to earn £10k before paying income tax has got to be a good reason in itself to get people off benefits...helping to make work pay. ;)

Universal credit should go some way to simplifying the system, but even then, the taper rape could vary, and it will be 65-74%. Way too high, especially for those on low wages when we view food and shelter as a citizen/human right. What's £1.50 an hour when you consider the cost of public transport (that you will most likely need to get to work).

Benefits are effectively a negative income tax. A citizens income is the best way forwards, if FIAT is to remain, that is.

People moan over the 50% rate of tax as a barrier to earning more! (52% if you include NI) (61% if you include the next generation graduate tax).

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Socialism is alive and well I see!

"If socialism is moving taxation from earned income to unearned income then call me a socialist."

Enoch Powell

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  • 343 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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