Jump to content
House Price Crash Forum
Sign in to follow this  
SarahBell

What Does: Real Wages Down £1600 Actually Mean?

Recommended Posts

As simple as the title:

What does: Real wages down £1600 actually mean?

I'd imagine it's the difference between wage growth, for the average wage, and inflation. They maybe haven't phrased it very well.

Share this post


Link to post
Share on other sites

I'm not sure why Labour always harp on about tax cuts for the rich. Surely the government needs to set tax rates which yield the most tax, not that are simply set at high rates. No matter how rich or poor you are, I don't see how anyone would like to pay over half of what they earn to the Government. Many rich people can adjust their incomes to minimise their tax bills. For example capital gains tax would raise more if it were set at a lower level. Being as high as it is now, most rich people do not sell any assets, but bill borrow against them, so not to pay any tax to dispose of the assets. The constant meddling with the tax system to squeeze more from rich people will ultimately be counter productive as more of them emigrate.

Share this post


Link to post
Share on other sites

I'm not sure why Labour always harp on about tax cuts for the rich. Surely the government needs to set tax rates which yield the most tax, not that are simply set at high rates. No matter how rich or poor you are, I don't see how anyone would like to pay over half of what they earn to the Government. Many rich people can adjust their incomes to minimise their tax bills. For example capital gains tax would raise more if it were set at a lower level. Being as high as it is now, most rich people do not sell any assets, but bill borrow against them, so not to pay any tax to dispose of the assets. The constant meddling with the tax system to squeeze more from rich people will ultimately be counter productive as more of them emigrate.

Because, unfortunately, most people are not bright enough to understand this. They just think 'OH I WANT PEOPLE THAT EARN MORE THAN ME TO PAY MORE TAX'

Share this post


Link to post
Share on other sites

I'm not sure why Labour always harp on about tax cuts for the rich. Surely the government needs to set tax rates which yield the most tax, not that are simply set at high rates. No matter how rich or poor you are, I don't see how anyone would like to pay over half of what they earn to the Government. Many rich people can adjust their incomes to minimise their tax bills. For example capital gains tax would raise more if it were set at a lower level. Being as high as it is now, most rich people do not sell any assets, but bill borrow against them, so not to pay any tax to dispose of the assets. The constant meddling with the tax system to squeeze more from rich people will ultimately be counter productive as more of them emigrate.

You make a good argument for asset taxes :)

The rich can ****** off and take their tax free land with them, oh wait, no they can't.

Share this post


Link to post
Share on other sites

Real wages down £1600 means a lot of money transferred to others. Probably to the "we" as in we're all in it together.

Interesting that Mr Balls didn't question Mr Osborne's crazy looking glass claims about their policies being fairness for savers and that's probably because that particular rip-off started under NuLabour but has gone to extremes under the LibCon branches.

Edited by billybong

Share this post


Link to post
Share on other sites

I'm not sure why Labour always harp on about tax cuts for the rich. Surely the government needs to set tax rates which yield the most tax, not that are simply set at high rates. No matter how rich or poor you are, I don't see how anyone would like to pay over half of what they earn to the Government. Many rich people can adjust their incomes to minimise their tax bills. For example capital gains tax would raise more if it were set at a lower level. Being as high as it is now, most rich people do not sell any assets, but bill borrow against them, so not to pay any tax to dispose of the assets. The constant meddling with the tax system to squeeze more from rich people will ultimately be counter productive as more of them emigrate.

Not sure I agree the upper rate has been meddled upwards.

How old are you?

I'm pushing 60 and it's been meddled down from around 90%+ to bouncing around somewhere between 40% and 50% for the past 20/30 years.

Also what does it now matter if the rich emigrate? Are you suggesting they're irreplaceable and that the land and positions they currently occupy would cease to exist?

In my lifetime I've seen middle earners pick up the slack from the 1%. The 1% certainly still pay around a third of our income tax receipts (it used to be closer to half) but they now take and keep far more. I'm not convinced this has benefited any of us, although I know we're all told it has. All I see is more asset bubbles.

Edited by byron78

Share this post


Link to post
Share on other sites

What I would like to know is where all this newly created money, debt, QE, bonds...all this new pumped up liquidity....Where has it gone? Who is holding/storing it? It most certainly is not being circulated in the real economy. ;)

Share this post


Link to post
Share on other sites

10690224_10152452595572411_3638759514635

So that's the case now?

Looks right.

Aren't we still told cutting the top tax rate should generate growth (or whatever the trickle down line now is)?

How can we all be poorer for letting the upper 1% keep 3 billion more? Surely that should be trickling down all over us by now?

Edited by byron78

Share this post


Link to post
Share on other sites

Looks right.

Aren't we still told cutting the top tax rate should generate growth (or whatever the trickle down line now is)?

How can we all be poorer for letting the upper 1% keep 3 billion more? Surely that should be trickling down all over us by now?

Ah the 1% that pay 30% of all income tax line, what they never admit to, apart from ken Clarke on QT a few weeks ago, is that income tax is not the lions share of the tax take, that they ignore the majority that comes from the other 99% in other taxes such as VAT.

I'm not saying tax em till the pips squeak, but trickle down In lieu of paying higher taxes has been a disaster.

Especially as all that's happened is speculation on asset bubbles that have warped our entire economy and society to get that unearned tax free high and damn the consequences

Edited by hans kammler

Share this post


Link to post
Share on other sites

This is a trend that has been going on now for some years...although household income has probably not fallen in real terms by that much, wages have. There has been a switch to pension income, and this (presumably) has to be paid from those working...the transfers between the two groups have seen pensioners 5% richer and workers 6% poorer. then we have other sources of income, investment income, welfare benefits etc.

I guess wage income is now heading for less than 50% of all income on the household pie chart...I have failed to get a link off google, but that would be interesting to know.

Meanwhile this refers to the transfer of monies from wages to pensions.......

http://www.ons.gov.uk/ons/dcp171776_341133.pdf

Edited by crashmonitor

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
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   215 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.