£30bn of tax rises needed to plug deficit, IFS claims. Taxes already highest since 1950's

[AdamoMucci]

https://news.sky.com/story/30bn-of-tax-rises-needed-to-plug-deficit-ifs-claims-11289737

Quote

The Government may have to impose £30bn of new tax rises in the coming years - equivalent to more than £1,100 a year for every household in the UK - if it is to meet its fiscal targets, a watchdog has warned.
.......
However, it added that the tax burden - the level of taxes raised from UK households as a percentage of gross domestic product - was already heading for its highest level since the 1950s, raising questions about how willing Britons will be to pay more taxes.
.......
[The IFS] pointed out that 75% of the benefits pain had yet to be felt, and that families at the lower end of the income spectrum would face the biggest cuts in the coming years.
.......
the IFS, also pointed out that the UK was reliant on high income taxpayers for a growing chunk of its revenues, making it particularly exposed if some decided to leave the country.

 

Complete and utter rock and a hard place. Too dependant on high-income tax payers, taxes highest level since the 50s, lower end still has 75% of the pain still to come. Is the country finished? What if there is another economic downturn in the next few years? How does one reconcile this?

(Though it mentions the issue with high earners leaving, this is not about Brexit as this happened while in the EU. This is more fundamental than whether we are in the EU or not.)

Edited March 14, 2018 by AdamoMucci

[DarkHorseWaits-NoMore]

 

Quote

...the IFS, also pointed out that the UK was reliant on high income taxpayers for a growing chunk of its revenues, making it particularly exposed if some decided to leave the country.

Ass covering diversionary propaganda - taxes are for the little people.

 

Quote

...the level of taxes raised from UK households as a percentage of gross domestic product - was already heading for its highest level since the 1950s

Yeah, for those little people!

[mrtickle]

If 75% of the benefits pain is still to be felt, then I have to ask: to what are they referring? In the last 8 years they've trimmed a bit here and there, and we had Tax Credits Sad Face on Question time which put a complete stop to George Osborne's attempt at real savings.

I can't believe the govn intends to start cutting at triple the rate of the past 8 years?

 

[guest_northshore]

That's not really the vibe of their analysis. Basically a dismal past decade, crappy economy and questionable Gov choices all combining for depressed prospects. Although the IFS taking an opportunity to grumble about the deficit isn't a shocker, even if a reflection of Gov priorities.

https://www.ifs.org.uk/publications/12841
https://www.ifs.org.uk/tools_and_resources/budget/524

 

[jimmy2x3]

this is what happens when all the best paying jobs and best pensions are for the government and being paid by the actual taxpaying public while they work to 69 for less. 

 

we all know the solution but i just keep constantly hearing people saying they need even more pay ie teachers, firemen, nurses ect. usually said by people that 1. dont work, 2. dont pay taxes, 3. dont sit and actually think how it is for everyone else. 

[Tapori]

5 hours ago, jimmy2x3 said:

this is what happens when all the best paying jobs and best pensions are for the government and being paid by the actual taxpaying public while they work to 69 for less. 

 

we all know the solution but i just keep constantly hearing people saying they need even more pay ie teachers, firemen, nurses ect. usually said by people that 1. dont work, 2. dont pay taxes, 3. dont sit and actually think how it is for everyone else. 

They wouldn't need more pay if housing was affordable.

[regprentice]

8 hours ago, AdamoMucci said:

The Government may have to impose £30bn of new tax rises in the coming years - equivalent to more than £1,100 a year for every household in the UK - if it is to meet its fiscal targets, a watchdog has warned.

Since the recent Scottish tax changes I've seen a £700 tax increase in the last year alone.

[PopGun]

2 hours ago, Tapori said:

They wouldn't need more pay if housing was affordable.

Simply this.

I’m confused, I keep getting told the Tories are on target with their fiscal responsibility, the deficit reduction on target etc. Then the IFS pop up and shoot down their propaganda. Inconveniently mentioning that in actual fact they can’t meet their own targets without tax rises, despite record levels of borrowing and austerity..

[NorthamptonBear]

3 hours ago, Tapori said:

They wouldn't need more pay if housing was affordable.

I agree.  High house prices are an evil to economies and society.

 

High property costs are a killer for productive industries too.  Even worse for industry are employment taxes and taxes on adding value.

Land value tax and citizens income would help.

 

Hoarders would pay, not productive people.  Citizens income is a safety net for caring years, retraining (combined with caring) and entrepreneurial risk taking.

[Freki]

1 hour ago, PopGun said:

Simply this.

I’m confused, I keep getting told the Tories are on target with their fiscal responsibility, the deficit reduction on target etc. Then the IFS pop up and shoot down their propaganda. Inconveniently mentioning that in actual fact they can’t meet their own targets without tax rises, despite record levels of borrowing and austerity..

And employment.

[Arpeggio]

56 minutes ago, NorthamptonBear said:

I agree.  High house prices are an evil to economies and society.

High property costs are a killer for productive industries too.  Even worse for industry are employment taxes and taxes on adding value.

Land value tax and citizens income would help.

Hoarders would pay, not productive people.  Citizens income is a safety net for caring years, retraining (combined with caring) and entrepreneurial risk taking.

It's an open goal for overseas competitors. If they take the opportunity then it might force the UK to improve I'd hope. Things often change due to the outside rather than the inside with our corrupt lot of politicians.

[Errol]

No need for taxes, there will have been a massive war well before then if things carry on as they are.

[Motor_Blade]

The magic money tree will rescue things.... 

[destroyah]

next door to me polish mummy living at home on tax credits with two kids whilst husband works as a delivery man

15 hours a week. housing benefit paid to rich landlord living in Cheshire.

Other household have local Chavs buying Audis and Mercs like there is no tomorrow.

To me it looks like some people do all right.

[Option5]

9 minutes ago, destroyah said:

next door to me polish mummy living at home on tax credits with two kids whilst husband works as a delivery man

15 hours a week. housing benefit paid to rich landlord living in Cheshire.

Other household have local Chavs buying Renting Audis and Mercs like there is no tomorrow.

To me it looks like some people do all right.

Corrected

[Democorruptcy]

The governbankment is just a transfer mechanism between the public and banks/corporations. £30bn short and Help To Buy bails banks and the Persimmon boss walks away with a £75m bonus?

80% tax on income/bonuses over £10m might help stop the cronyism cut the deficit?

 

[durhamborn]

3 hours ago, fru-gal said:

Does anyone know what the 75% "benefits pain" is referring to? I thought all the cuts and changes had already been introduced.

Not cuts,simply the working age benefit freeze.The cuts that would of made the tax credit system much better (and less likely to collapse long term) were kicked out by the Lords and a woman fiddling thousands and crying on Question Time.

There have been hardly any welfare cuts apart from the working age benefits freeze.

 

[durhamborn]

6 hours ago, destroyah said:

next door to me polish mummy living at home on tax credits with two kids whilst husband works as a delivery man

15 hours a week. housing benefit paid to rich landlord living in Cheshire.

Other household have local Chavs buying Audis and Mercs like there is no tomorrow.

To me it looks like some people do all right.

180+ single parents on tax credits on the council estate near me.Aldi opened.Polish girl got a job on the till,came a few thousand miles.No benefit claims 100 yards away wanted a job.She worked full time.After a year she had a baby and has then found out she got the same money working 16 hours on tax credits and is now claiming herself.So we imported someone to do a job in Aldi while 180+ benefit claims lived 100 yards away only for her to then become a benefit claim as well.Tax credits are probably the most damaging policy  the UK has seen since the corn laws.They also are the main reason Brexit happened.

 

[Houdini]

4 minutes ago, durhamborn said:

180+ single parents on tax credits on the council estate near me.Aldi opened.Polish girl got a job on the till,came a few thousand miles.No benefit claims 100 yards away wanted a job.She worked full time.After a year she had a baby and has then found out she got the same money working 16 hours on tax credits and is now claiming herself.So we imported someone to do a job in Aldi while 180+ benefit claims lived 100 yards away only for her to then become a benefit claim as well.Tax credits are probably the most damaging policy  the UK has seen since the corn laws.They also are the main reason Brexit happened.

 

That's strikingly familiar to my story about Brexit where an entire estate in Leyland voted out because of the Aldi jobs not going to locals (most locals didn't have a clue how to vote and had to be told). Made my a few k though so I'm not going to complain.

[Houdini]

But yep - tax credits mean you have to be insane to work a minimum wage job full time....

[destroyah]

the million dollar question then, if mainstream politicians have not got the guts to withdraw tax credits and other damaging benefits, who will?

does this country need a dictator or something? 

what is likely to happen once the money really ru out? raid people's bank accounts with a sudden wealth tax to pay for the tax credit claimants? who will pay the pensions of said tax credits claimants in 20 years time?

[AdamoMucci]

16 hours ago, Tapori said:

They wouldn't need more pay if housing was affordable.

 

13 hours ago, PopGun said:

Simply this.

 

12 hours ago, NorthamptonBear said:

I agree.

 

11 hours ago, Freki said:

And employment.

 

10 hours ago, Motor_Blade said:

The magic money tree will rescue things.... 

 

 

This is a great video imo. Only 17mins. A bit flat at the end as he does not say where we go from here. But he says hello to David Cameron in the audience while he is telling us what has gone wrong.

 

Edited March 15, 2018 by AdamoMucci

[Dreamcasting]

1 hour ago, destroyah said:

what is likely to happen once the money really ru out? raid people's bank accounts with a sudden wealth tax to pay for the tax credit claimants? who will pay the pensions of said tax credits claimants in 20 years time?

There's no such thing as 'the money running out'. It's just a number. I don't see that there will be a problem with providing a pension to anyone in the future. Sure, you won't get a lot and it won't buy much, but it will be just enough to keep idiots in check. People are really over thinking things.

[InlikeFlynn]

45 minutes ago, AdamoMucci said:

 

 

 

 

 

 

This is a great video imo. Only 17mins. A bit flat at the end as he does not say where we go from here. But he says hello to David Cameron in the audience while he is telling us what has gone wrong.

 

Really interesting, thanks for posting. 

[chronyx]

33 minutes ago, Dreamcasting said:

There's no such thing as 'the money running out'. It's just a number. I don't see that there will be a problem with providing a pension to anyone in the future. Sure, you won't get a lot and it won't buy much, but it will be just enough to keep idiots in check. People are really over thinking things.

Phew. That's a relief.