We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Possible Tax Cuts on the way

Dan:_4
Dan:_4 Posts: 3,795 Forumite
Part of the Furniture 1,000 Posts Combo Breaker
in Debate House Prices & the Economy
http://news.bbc.co.uk/1/hi/uk_politics/7719017.stm

I predicted the other day, on another thread, that we will be getting tax cuts next.

Keep People Spending = people keep their jobs = stronger economy

Folk have already saved hundreds each month from their mortgage (other folk no longer fear coming off fixed rates) and now, possibly extra money in the pay packet - it's gonna be a good xmas after all.
«134567…17

Comments

  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Dan: wrote: »
    Folk have already saved hundreds each month from their mortgage (other folk no longer fear coming off fixed rates) and soon extra money in the pay packet - it's gonna be a good xmas after all.
    And some folk have lost hundreds each month off their interest income... and with no pay packet there is no extra.

    Now I need to get a job. What a bummer.
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    How can we have tax cuts, when the govt is borrowing so much more?
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
  • space_rider
    space_rider Posts: 1,741 Forumite
    Dan: wrote: »
    http://news.bbc.co.uk/1/hi/uk_politics/7719017.stm

    I predicted the other day, on another thread, that we will be getting tax cuts next.

    Keep People Spending = people keep their jobs = stronger economy

    Folk have already saved hundreds each month from their mortgage (other folk no longer fear coming off fixed rates) and soon extra money in the pay packet - it's gonna be a good xmas after all.

    I don`t get it. There is a recession. People fear for their jobs so surely people would be silly to go on a spending spree when they may lose their jobs. I work for a rather big company that employs around 18,000 throughout the world but 300 people will be made reduntant on 31st Dec this year. My job is safe for now but who knows how long for.

    They are welcome to cut my tax but I won`t be spending more than I need to.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    neverdespairgirl wrote: »
    How can we have tax cuts, when the govt is borrowing so much more?

    Our children will pay for them. Say thanks to young Isaac from me.
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    PasturesNew wrote: »
    And some folk have lost hundreds each month off their interest income... and with no pay packet there is no extra.

    Unfortunately savers arn't spenders. And I know 99% of people on this forum will disagree with me, but we need to get people spending.
  • Cannon_Fodder
    Cannon_Fodder Posts: 3,980 Forumite
    Looks more and more like a Spring election to me...
  • hamstercheeks_2
    hamstercheeks_2 Posts: 1,953 Forumite
    Part of the Furniture Combo Breaker
    i agree how can we have tax cuts?? what about all the billions that has been invested by the government? how is that money going to be reclaimed?
    now they are saying that they might increase children's tax credit? where is the money coming from for that if they are cutting taxpayers tax??
    Time is the best teacher
    Shame it kills all the students
    :p
    *******************************************************************************************
  • mystic_trev
    mystic_trev Posts: 5,434 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    In a recession people tend to save, not spend.
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    space_rider wrote: »
    I don`t get it. There is a recession. People fear for their jobs so surely people would be silly to go on a spending spree when they may lose their jobs. I work for a rather big company that employs around 18,000 throughout the world but 300 people will be made reduntant on 31st Dec this year. My job is safe for now but who knows how long for.

    They are welcome to cut my tax but I won`t be spending more than I need to.

    I agree. neither will I, infact I don't expect any MSE user to.

    The average joe is a different matter tho.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Dan: wrote: »
    Unfortunately savers arn't spenders. And I know 99% of people on this forum will disagree with me, but we need to get people spending.

    The sort of spending we really need to get going IMO is business investment. One big problem we're going to be facing in the very near future is that a lot of investment recently has been directed into capacity in financial services, housebuilding and selling houses. As a result we have too much capacity in these areas and so need to get investment going in other sectors to provide jobs for the people that are losing their jobs.

    Unfortunately, the Government running massive deficits cuts into the money available for companies to invest via a process known as crowding out.

    The problem with deficit financed tax cuts in the UK is that about a third of any extra money that a UK household gets is spent on imports and also it will reduce business investment!

    And about 99% of people (and maybe 90% of economists) will disagree with what I've just said too!!!
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.2K Work, Benefits & Business
  • 600.8K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture