Income tax increase. IS IT TRUE?

shadydaz

Hi peeps.

I have been lurking around here this morning reading various threads and it has been mentioned a few times that the government may have plans to increase our income tax to make up for the sortfall on paying out JSA and other benifits.

I was wondering if this is just speculation or whether there is anything concrete stating that this increase is imminent?

I, like many of you (maybe) will have to seriously rethink our financial situations to acheive our current Debt free dates:mad:

MrsTinks

I certainly haven't seen anything in the news about it... I know they were on about raising the tax brackets though.

Ames

I think it's just speculation, I don't think any of the parties have made announcements about their tax plans.

rog2

Tax increases, whether through direct or indirect taxation, are inevitable, given the financial mess that this country is in.
The question is not if, but when.
No Government is going to commit political suicide by announcing huge tax rises when there are only a few months to go before they must hold a General Election.
Whoever wins that election, though, is going to be faced with some very tough decisions.

captainhaggis

If we see our income tax rates increase, I'm going to leave the UK.

Sounds extreme but it's something I've long considered.

I live in Scotland but work in London and could just as easily live in continental Europe but continue my work in the UK. By moving to Europe I would cease having to pay income tax in the UK (but would continue to pay NI etc) and the country I move to would also not require me to pay tax on my earnings there.

I will not sit and pay more and more to this - or any government - for a substandard service.

shadydaz

We all know about "stealth" taxing by the government, but it does seem that some people are already bracing themselves for the worst.

I don't understand how the governemt can run up £11billion worth of overspending in ONE MONTH and continue to do so month after month and then expect us to pick up the bill for years to come

I am no politician and understand that running a country is not quite as simple as sticking to budgts etc. but surely these massive deficits can be reduced by some other means?

How the blooming hell is anyone going to get by with out getting into debt (or more debt) if tax hikes happen next year if the government cannot operate within its own means?

rog2

shadydaz wrote: »

We all know about "stealth" taxing by the government, but it does seem that some people are already bracing themselves for the worst.

It certainly does, sg:

http://news.bbc.co.uk/1/hi/uk_politics/8372839.stm

Pobby

Hi Rog, long time no see. Hope you are doing well. Lots of talk on the economy board. A lot of folk that tax rises are going to happen one way or another. My hope, ahhh what a romantic, is that the burden will be placed on higher earners. I feel it`s a disgrace that the tax free allowance is so small. Folk on minimum wage should pay no tax.

rog2

Pobby wrote: »

Hi Rog, long time no see. Hope you are doing well. Lots of talk on the economy board. A lot of folk that tax rises are going to happen one way or another. My hope, ahhh what a romantic, is that the burden will be placed on higher earners. I feel it`s a disgrace that the tax free allowance is so small. Folk on minimum wage should pay no tax.

I find the whole question of taxes very emotive, pobby. Unfortunately none of us can pretend that it won't happen.

Other than that - I'm fine thanks. How's the 'kicking smoking' going?

Pobby

Three and a half months now. This is how I did it.

http://www.e-cigarette-forum.com/forum/

Tbh, I don`t miss it one bit now. That`s from 30 a day as this substitute is far nicer.

Tixy

shadydaz wrote: »

Hi peeps.

I have been lurking around here this morning reading various threads and it has been mentioned a few times that the government may have plans to increase our income tax to make up for the sortfall on paying out JSA and other benifits.

I was wondering if this is just speculation or whether there is anything concrete stating that this increase is imminent?

I, like many of you (maybe) will have to seriously rethink our financial situations to acheive our current Debt free dates:mad:

Income tax is increasing from April 2010 in that there will be a new additional higher rate tax band of 50%. This will basically be for people earning more than £150k pa.
People earning more than £100k will also pay more as they will lose there personal allowance (which is the £4700 odd that everyone can earn that they don't pay tax on). These were both announced last April though.

Indirect tax is of course increasing in that VAT is going back up to 17.5% from 01 Jan.