Could Basic Rate Tax Rise By 5p?

marklv

I would much prefer to see income tax (not just basic, but higher rates as well) go up by 5p in the pound and VAT up to 20% than see huge and damaging cuts in public spending.

marklv

mitchaa wrote: »

VAT rises probable, income tax rises 1-2p probable.

5p in the pound:rotfl:

It would put a lot of low earning workers £10-£15k into severe hardship/poverty

The logical thing would be to raise the personal allowance to £10k at least, as the Lib Dems propose.

mr_fishbulb

5p in the £?!

I thought it was just an increase of 5p

mitchaa

marklv wrote: »

I would much prefer to see income tax (not just basic, but higher rates as well) go up by 5p in the pound and VAT up to 20% than see huge and damaging cuts in public spending.

I take it from your response that you are on benefits then;)

Thrugelmir

mitchaa wrote: »

VAT rises probable, income tax rises 1-2p probable.

5p in the pound:rotfl:

It would put a lot of low earning workers £10-£15k into severe hardship/poverty

Introducing a 23% - 25% tax band on earnings over £20k a year is a possibilty.

Thereby protecting the lower paid.

thriftybabe

Something drastic has to be done. I think eventually it will rise by 5p but they will do it in bits. TBH I would rather get it over and done with and pay it. VAT is going to play havoc with our small business. We do extensions and are already competing with people who are doing cash jobs. What do we do when we can only get a couple of jobs a year as everyone else can do it at least 35% cheaper than us by the time we add our tax and VAT on? We may as well close up shop now and do what everyone else is doing around us and take cash!

Harry_Powell

We would then have a tax system that had 4 tax bands, not including the complexities of National Insurance. Would this not be a little excessive?

mr_fishbulb

Harry_Powell wrote: »

We would then have a tax system that had 4 tax bands, not including the complexities of National Insurance. Would this not be a little excessive?

They would have to employ thousands more at HMRC to advise and enforce all of it.

donaldtramp

Tax rises will be minimal, most people won't see any material change to their standard of living.

:rotfl::rotfl::rotfl:
Do you have any idea how much debt we are in?

There is going to be massive pruning of the public sector, both Darling and Osbourne have admitted.
Taxes will rise. We cannot keep paying out more in benefits than we take in from income tax. Benefits will get hammered as well.
The only reason that Britain is still functioing at the moment is because the government is borrowing like ther is no tomorrow.
The inflation rate has already jumped, Interest rates will have to rise and at some point the government will no longer be able to borrow money at the rates they are getting just now. Lenders (the bonds markets) are already talking of downgrading the UK's credit profile from AAA.

This is still an absolute disgrace. We are dropping down the league of rich nations. We have no industry to get us out of it and a massive third generation underclass who thinks that they are "entitled" to everything without contributing to society.

Britain is in a very sorry state.

Thrugelmir

Harry_Powell wrote: »

We would then have a tax system that had 4 tax bands, not including the complexities of National Insurance. Would this not be a little excessive?

Payrolls in the main are run on software applications so not difficult.

Banded tax makes sense.

Outside of income tax difficult to see where significant amounts of revenue can be raised.