Tesco Staff Receive Over £350M In Tax Credits

[OnionTerror]

Boris's original article...

http://www.telegraph.co.uk/finance/budget/11719531/Lets-cut-taxes-for-people-at-the-top-and-the-bottom.html

In the Wail..

http://www.dailymail.co.uk/news/article-3150725/Cut-rate-tax-40p-rich-bosses-pay-staff-properly-says-Boris-Johnson.html

Between these five companies, we bail them out for over £1bn...

[RentingForever]

It's like a hidden subsidy of our grocery bills. Remove it and food costs will go up ('cos the supermarkets sure as hell won't take the hit on their profits).

[canbuywontbuy]

Then again, lower housing / renting costs and we can afford higher grocery bills, and then we are less reliant on WTC. Added bonus: lower housing costs = lower housing benefits bill.

If you believe the government is here to give us "the best economy possible", then you will be confused by their decision making. The government wants the economy to run at a particular speed - and that includes using a brake as well as an accelerator.

Edited July 6, 2015 by canbuywontbuy

[XswampyX]

It's like a hidden subsidy of our grocery bills. Remove it and food costs will go up ('cos the supermarkets sure as hell won't take the hit on their profits).

Is it?

You could have half the number of people working there for twice as long and they wouldn't need tax credits. Isn't it just dole money / cooking the unemployment figures?

[canbuywontbuy]

You could have half the number of people working there for twice as long and they wouldn't need tax credits. Isn't it just dole money / cooking the unemployment figures?

Good point - low unemployment thanks to more part-time jobs - subsidised by the tax payer - is a hallmark of a Potemkin economy, not a healthy, recovering one.

[R K]

The article wasn't about legislating higher wages.

And there are plenty of people who do believe – as I do – in the Laffer curve: the idea that a cut in the taxation rate may stimulate enterprise, leading to higher yields overall.

It was about a debunked 80s nonsense - the laffer curve - followed by a weird argument for NOT paying CEOs loads of dosh as a result of the wrong-headed laffer curve "incentive" of lower taxes incentivising CEOs followed by a brief para at the end suggesting that in return for slashing taxes on the richest CEOs they really ought to pay people a bit more.

In sum, the usual populist Tory clap trap which didn't work in the 80s, crashed the global economy in the 00s and has led to the lower wages that he now pretends he would like to see raised in return for CEO's taking home even more loot.

The man is a moron. Truly. He simply repeats stuff he heard Nigel Lawson once say as if it is FACT. Worst sort of non-empirical ideologue. If he thinks low pay should be higher of course that's great. Legislate for higher wages, but that has nothing whatsoever to do with slashing Lord Wolfson's tax bill. The two aren't connected. He doesn't need Wolfson's permission. Or perhaps he does.

Edited July 6, 2015 by R K

[wonderpup]

And there are plenty of people who do believe – as I do – in the Laffer curve: the idea that a cut in the taxation rate may stimulate enterprise, leading to higher yields overall.

This same guy would almost certainly argue against a basic citizens wage on the basis that once that basic standard of living is achieved all motivation to work is lost.

But if you then pointed out that this logic implies that we should tax the entrepreneurs massively to ensure they never reach this basic standard and so stop creating wealth for the rest of us I suspect he would not agree.

After all the last thing we want is for these engines of wealth creation to hit that basic level of income and immediately lose all motivation to make more money- it's a serious threat to the economy.

[Goat]

It was about a debunked 80s nonsense - the laffer curve -

Debunked, who by?

This same guy would almost certainly argue against a basic citizens wage on the basis that once that basic standard of living is achieved all motivation to work is lost

What makes you think that?

I can't think of any competent economist who would argue such a thing.

[wherebee]

It's like a hidden subsidy of our grocery bills. Remove it and food costs will go up ('cos the supermarkets sure as hell won't take the hit on their profits).

Wrong. Profits flowing back to shareholders and senior management would fall. Perhaps some slight increase in prices of some marginal goods. But (and it is a big but) the decrease in tax take might well go down to counterbalance that anyway.

[crash2006]

Wrong. Profits flowing back to shareholders and senior management would fall. Perhaps some slight increase in prices of some marginal goods. But (and it is a big but) the decrease in tax take might well go down to counterbalance that anyway.

Watch the housing market crash once they cut tax credits, and watch the spending drop.

Edited July 6, 2015 by crash2006

[stuckmojo]

you only need to look at the meaning of the oxymoron "tax credits" a bit closer and you'll soon realize how ******ing stupid of a concept that is.

[nnails]

Mum my use to work in shop. It was common for staff to refuse to work more than 16hrs as it effected there tax credits. Some got more money than a full time workers.

[nome]

All very rough guestimates but I know that my local 24/7 Tescos employs just over 350 people, with around 15-20 working there at any one time, that averages out that each of them work less than 10 hours a week.

[spyguy]

you only need to look at the meaning of the oxymoron "tax credits" a bit closer and you'll soon realize how ******ing stupid of a concept that is.

Its not an oxymoron, its a big stinking lie - tax credits are free money to vote for Gordon.

[moneyfornothing]

Its not an oxymoron, its a big stinking lie - tax credits are free money to vote for Gordon.

you wouldn't ever get RK to agree to that... Osbourne bashing is fine though. Tax credits were the embodiment of perfection the moment they were introduced and were totally devoid of political ideology ... Purely brought in to improve the lot of mankind. Any attempts to deviate from perfection are evil , stupid and ideologically motivated all at the same time. In short labour = Gods, Tories = the devil ... And you can apply that to any argument and any topic ... Thank you

[canbuywontbuy]

Watch the housing market crash once they cut tax credits, and watch the spending drop.

....the high street is already dying, largely thanks to high housing + utlity costs. The rise of Aldi/Lidl/poundshops is down to this too (many can only afford to shop there). The rise of Aldi/Lidl/poundshops has put pressure on Tesco et al to lower costs. The rise in foodbanks (high housing + utility costs). All - in my opinion - down to high cost of housing / utilities.

WTC is many things - one of them is a crutch to keep high house prices / rents high.

Continue on the current path and the retail market will wither on the vine.

To me the answer is obvious (work to reduce housing / utility costs) - but remember that governments don't do what is best for the economy - their ulterior motive is to keep the economy moving at a particular speed.

Edited July 7, 2015 by canbuywontbuy

[winkie]

Good point - low unemployment thanks to more part-time jobs - subsidised by the tax payer - is a hallmark of a Potemkin economy, not a healthy, recovering one.

Make work pay........tax credits trickle to the top, help keep stocks, divs housing/rents high....there is no easy answer to all this, take it away will cause resentment and anger and collapse.

We are not productive enough or consume or even borrow enough to provide a working living wage for all people of working age is up to the age of 68 long-term....money and time running out?

[iamnumerate]

Its not an oxymoron, its a big stinking lie - tax credits are free money to vote for Gordon.

Very true I know someone who recently got a 15 hour job we asked her if she could do more hours and she said she didn't want to.

Then I realized that tax credits didn't make it worthwhile. She would vote Labour if she could be bothered to.

[canbuywontbuy]

We are not productive enough or consume or even borrow enough to provide a working living wage for all people of working age is up to the age of 68 long-term....money and time running out?

One solution is to lower living costs (housing / utilities / fuel duty being the main three) because then everyone benefits - including small to medium business owners.

[crashmonitor]

Would be the same pro rata with any supermarket. At the end of the day we are all benefitting from ludicrously cheap food, subsidies from the farm gate right through to the shelf stacker and check out assistant.

If we are going to subsidise anything then food isn't the worst of the abuses, it helps the poor the most.