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jonewer

Government Coffers Completely Badgered!

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The Government is facing a multi-billion pound shortfall in its finances because of the economic downturn, a study of Treasury figures said.

According to reports, the analysis, by an economic research institute, predicts the slowdown in the economy will cut at least £8bn from the tax revenues that Chancellor Alistair Darling forecasted in his March Budget.

Stating the obvious I know... but then its nice to hear the obvious stated for a change.

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Stating the obvious I know... but then its nice to hear the obvious stated for a change.

why do you think they took the 10p tax band away.

Edited by crash2006

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Only three options for our uniquely well placed government to balance the books as we head into recession.

1. Cut government spending - oouch.

2. Raise taxes - oouch.

3. Increase borrowing (and as a result drive up interest rates) - oouch.

Perhaps when things were booming they should have done a little of 1. and not so much of 2. and 3. because now we are f ucked.

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The govt got stupid. It believed the taxes it was getting were real.

However most of the taxes paid into govt coffers has been from debt, people taking out loans to go on massive spending sprees.

This miscalculation is now coming home to roost in a huge way, perhaps they should have stopped the idiot lending practices of the banks many years ago and we wouldn't have had a huge asset bubble and rampant govt spending.

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The govt got stupid. It believed the taxes it was getting were real.

However most of the taxes paid into govt coffers has been from debt, people taking out loans to go on massive spending sprees.

This miscalculation is now coming home to roost in a huge way, perhaps they should have stopped the idiot lending practices of the banks many years ago and we wouldn't have had a huge asset bubble and rampant govt spending.

That is one of the problem with stealth taxes - when they dry up they have no reason to bleat about it and are left with a massive hole. Perhaps somone could provide the figures for the stamp duty hole? All those years of not moving the brackets and milking it nicely have placed an expectation on a tax income that will all but disappear with a house price crash.

Regards,

Q

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  • 399 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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