Could Basic Rate Tax Rise By 5p?

tartanterra

There's some really ill informed stuff on here.

I'm not infantry. I'm an aircraft engineer.
I've been shot at in Kosovo and also shot at and mortared in Iraq. (where three of my unit were killed)

As for Forces pensions, it is non-contributary because it is abated to take account of the military pension. When I joined, it was an 11% abatement of pay. This has slowly been reducing as the buying power of the pension has been eroded.

Bootski

doire wrote: »

http://www.telegraph.co.uk/finance/personalfinance/consumertips/7077807/Britain-is-out-of-recession-at-last---but-are-you.html



With Britain borrowing record amounts of money, many expect public spending cuts or tax rises – or both – as the Government attempts to balance the books.

Income tax could have to rise by as much as 5p in the pound, said Mark Dampier of Hargreaves Lansdown, the asset manager.
“We have been living through a phoney war, mainly because of the electoral cycle. No political party has the heart or the courage to tell it as it really is,” he said. “So we won’t get a real Budget until after the election and this will probably be worse than the infamous 1981 Geoffrey Howe Budget. So the real war will begin probably some time in July.
“What can we expect?

I strongly suspect that the big tax takers – basic-rate tax and VAT – will rise, VAT to 20pc and basic-rate tax by 2p to 5p in the pound.”
He added: “The high level of government and consumer debt makes me feel quite pessimistic.

It took over 300 years for us to have £380bn worth of public debt. It has taken this government 12 years to bring it to £850bn. Reducing it will mean a huge shock to our finances – the recession is not over for most of us.”

No - they'll squeeze in NI Contributions but would be mad to raise IT now.

They abolished the 10p rate last year, making the poor poorer - that worked out really well didn;t it!!:eek:

They've raised upper earners, and that also went down like a wet sack as they're gonna leave the country.

So much for equality and irradicating poverty.

Even Blair is going to cost the tax payer £250K tomorrow for turning up to be interrogated.

:rotfl::rotfl::rotfl:

Bootski

tartanterra wrote: »

There's some really ill informed stuff on here.

I'm not infantry. I'm an aircraft engineer.
I've been shot at in Kosovo and also shot at and mortared in Iraq. (where three of my unit were killed)

As for Forces pensions, it is non-contributary because it is abated to take account of the military pension. When I joined, it was an 11% abatement of pay. This has slowly been reducing as the buying power of the pension has been eroded.

All due respect to you then. Without bigging you up too much, you deserve a decent pension all the more.:T

peterg1965

Bootski, thanks for bringing this thread back to normality!

Bootski

peterg1965 wrote: »

Bootski, thanks for bringing this thread back to normality!

thanks - someone has to - but hold on tight as the onslaught is just about to begin ( towards me, personally!!):D

mitchaa

tartanterra wrote: »

There's some really ill informed stuff on here.

I'm not infantry. I'm an aircraft engineer.
I've been shot at in Kosovo and also shot at and mortared in Iraq. (where three of my unit were killed)

You are a REME aircraft technician then? (Engineer as im sure you know is a civil term granted to those with an EASA/CAA license) You would leave the forces and become a fitter, not an engineer;)

Remind me of your unit as I am not aware of any REME AC guys dying in Iraq, nor have I heard of any aircraft guys from Wattisham/Dishforth/Wallop using their SA80's in anger. Tread carefully, I am an LAE having worked very closely in the past with REME AC military, in particular with AH squadrons:p;)

Kandahar and CB are frequently mortared but ive never heard of any injuries or deaths sustained by them.

Anyway my point was never to belittle the military, they do a good job and follow orders. My point was made to show that only a small minority of the total numbers put their lives on the line.

Pennywise

Bootski wrote: »

No - they'll squeeze in NI Contributions but would be mad to raise IT now.

They abolished the 10p rate last year, making the poor poorer - that worked out really well didn;t it!!:eek:

They've raised upper earners, and that also went down like a wet sack as they're gonna leave the country.

So much for equality and irradicating poverty.

Even Blair is going to cost the tax payer £250K tomorrow for turning up to be interrogated.

:rotfl::rotfl::rotfl:

All the major politicians are missing the point and can't see the elephant in the room. The tax and benefits system is broken and needs fixing. No amount of tinkering around with rates and allowances will ever be enough to solve the fundamental problems. The system is simply far too complicated and without brave decisions to make big changes, all that will happen is even more tinkering around the edges, pandering to vested interests, etc making it even more illogical and complicated.

For a start, we need to completely scrap national insurance. It's nonsense. It isn't "ring fenced" so you can't say that it provides pensions or health/social services anymore as it was planned to do so when first introduced. The fact is simple - it's just another tax - let's face that and accept it, and then we can move on. People can spend their entire lives not paying any NIC, yet still earning decent amounts of income, yet still receive the full measure of state benefits - how can that be fair? Some ways of avoiding NIC - pay dividends from your limited company instead of wages, invest in property or shares so the income is "investment income" not subject to NIC, organise a large pension pot as pension payouts are NIC-free. So plenty of ways to avoid paying NIC yet still make money and have a decent income - how is that fair?

Secondly, partly following on from the above, we need to scrap the artificial and pointless difference in tax rules between "earned" and "unearned" income - in some cases the former is better than the latter and in others the opposite - why? Why can't it be simplified?

Thirdly, why different rates and allowances between Income tax, corporation tax and capital gains tax? Why not a fixed "basic" rate up to a certain threshold, and a fixed "higher" rate above, regardless of the source and nature of income/profits.

Fourthly, why should there be any difference in tax payable depending on how a business is set up? Why should it be possible to pay a lot less tax if you trade as a limited company as opposed to trading as a sole trader? Surely if a business, regardless of its legal structure, makes "£X" profit and it's proprietors draws "£Y" out, the tax paid should be the same?

Fifth, why should a couple pay more tax if one goes out to work and the other stays at home, compared to where both go out to work for half the same money each yet pay a lot less tax.

So, my "big idea" is as follows:-

1. Personal allowance to be increased, probably to around £10k p.a. but transferrable between household members. Scrap CGT annual allowance.
2. Scrap NIC and CGT and have a new basic rate of income tax for all forms of income and gains, probably ~ 30%. Higher rate tax ~ 40% and a higher "higher rate" tax for even higher incomes at ~50%.
3. New rules meaning that all businesses pay the same amount of tax regardless of their legal structure.

Hopefully, the increased tax paid on pensions and investment income should be mitigated for the worst off (lower paid and pensioners) by the increase in annual personal allowance and transferability of it between spouses.

The aim of my proposals is to target those who aren't paying "their fair share" at the moment. It shouldn't affect the vast majority of normal workers as the increase in tax is offset by removal of national insurance. What it will hit hardest will be those with their own limited companies paying less because there's no NIC on dividends and those who've invested in properties, again who pay no NIC on their profits.

I'd hate to see any tax rises that will seriously affect the typical worker - they're hit bad enough anyway with all the stealth taxes we've already got. I'd like to see changes planned so as not to affect the average worker on the average £25k salary. In my mind, investors and speculators have had a good run with very low capital gains tax and it's about time that if someone makes £100k profit from a property (either rent or sale or combination of both) then they should be paying the same kind of tax as someone who'd earned £100k from working - what's so unfair about that?

tartanterra

mitchaa wrote: »

You are a REME aircraft technician then? (Engineer as im sure you know is a civil term granted to those with an EASA/CAA license) You would leave the forces and become a fitter, not an engineer;)

Remind me of your unit as I am not aware of any REME AC guys dying in Iraq, nor have I heard of any aircraft guys from Wattisham/Dishforth/Wallop using their SA80's in anger. Tread carefully, I am an LAE having worked very closely in the past with REME AC military, in particular with AH squadrons:p;)

Kandahar and CB are frequently mortared but ive never heard of any injuries or deaths sustained by them.

Anyway my point was never to belittle the military, they do a good job and follow orders. My point was made to show that only a small minority of the total numbers put their lives on the line.

Priceless tripe.

Thanks for telling me to "tread carefully". Easy to be threatening when your anonomously cowering behind your computer. Picked on at school?, failed basic training? Probably both I would guess.:D

If your an LEA whos worked with REME aircraft branch, then there's probably a high chance your at Westlands or Vector or even one of the project teams at Yeovilton, so why don't you just PM me? I'll take you into my work and we'll see how much of your internet bravado remains when your telling everyone your anti forces views.
You can have a nice day out with Commando Helicopter Force (well, the ones who aren't deployed to the Stan). They are of course, according to your made up "facts" part of the "100% of the Royal Navy" whom you claim aren't deployed in Ahfganistan.

Shouldn't really have to prove anything to you, but hope this satisfies your sad existence:

http://www.timesonline.co.uk/tol/comment/obituaries/article682197.ece

Your "facts" are nonsense, your bravado is just sad stuff from someone with "small mans disease", and your anti forces rants are just the twisted attitude of an embittered failure.

This is a thread about the state of the economy, and you have now hijacked it to persue your prejudice against the Forces. Sad, sad, sad.

Now, as stated, just PM me, and stop hijacking an otherwise interesting thread. Just let all the grown ups get on with this thread, without all this childish ill informed nonsense. Frankly, your embarrasing.:(

mitchaa

tartanterra wrote: »

Priceless tripe.

Thanks for telling me to "tread carefully". Easy to be threatening when your anonomously cowering behind your computer. Picked on at school?, failed basic training? Probably both I would guess.:D

If your an LEA whos worked with REME aircraft branch, then there's probably a high chance your at Westlands or Vector or even one of the project teams at Yeovilton, so why don't you just PM me? I'll take you into my work and we'll see how much of your internet bravado remains when your telling everyone your anti forces views.
You can have a nice day out with Commando Helicopter Force (well, the ones who aren't deployed to the Stan). They are of course, according to your made up "facts" part of the "100% of the Royal Navy" whom you claim aren't deployed in Ahfganistan.

Shouldn't really have to prove anything to you, but hope this satisfies your sad existence:

http://www.timesonline.co.uk/tol/comment/obituaries/article682197.ece

Your "facts" are nonsense, your bravado is just sad stuff from someone with "small mans disease", and your anti forces rants are just the twisted attitude of an embittered failure.

This is a thread about the state of the economy, and you have now hijacked it to persue your prejudice against the Forces. Sad, sad, sad.

Now, as stated, just PM me, and stop hijacking an otherwise interesting thread. Just let all the grown ups get on with this thread, without all this childish ill informed nonsense. Frankly, your embarrasing.:(

Internet bravado, I think you have proven your own point there my friend. Pot, kettle, you know the score Under no circumstance did I resort to the same tactics you are displaying in your above post. I left that behind in the playground some 15yrs ago now.

Talk about childish ill informed nonsense :rotfl:You have personally attacked me in a derogatory manner with your rant above. Where was my initial post to you doing the same? I wont bother trying to belittle you back in retaliation as like i said that is for kids. Saying that, I would have expected someone supposedly in the forces to have conducted himself with a little more manner and discipline.

Keyboard warrior back to yourself

I said tread carefully in respects to the fact that I am in the aviation industry and I have a lot of background knowledge within the military environment. Any claim you make could easily be checked upon as I have a lot of old chums still serving in Wattisham at the moment.

Hence why i said tread carefully;)

You have still to provide me with some evidence of 3 AC REME engineers being KIA, or did you mean fighter pilots? If the latter then not really valid in the discussion. They fly about hurtling missiles into buildings, they should expect retaliation fire. Did i ever claim the RN were not in Afghanistan? Where?

I take it, it was the fitter comment that got your back up. Perhaps when you leave you can come and work for me

I am in no way anti forces, I have no idea where you have got that from? My point made was that the majorities of those in the military are not front line troops and thus not in any great degree of danger. I do think public support is dwindling for Afghanistan though, it's an unwinnable campaign, guys are coming home in bodybags and for what? It's a government decision, the guys i know still serving do not want to be out there, they do not support it, they are simply just following orders from pen pushers at Westminster.

Over and out.

tartanterra

mitchaa wrote: »

Internet bravado, I think you have proven your own point there my friend. Pot, kettle, you know the score Under no circumstance did I resort to the same tactics you are displaying in your above post. I left that behind in the playground some 15yrs ago now.

Talk about childish ill informed nonsense :rotfl:You have personally attacked me in a derogatory manner with your rant above. Where was my initial post to you doing the same? I wont bother trying to belittle you back in retaliation as like i said that is for kids. Saying that, I would have expected someone supposedly in the forces to have conducted himself with a little more manner and discipline.

Keyboard warrior back to yourself

I said tread carefully in respects to the fact that I am in the aviation industry and I have a lot of background knowledge within the military environment. Any claim you make could easily be checked upon as I have a lot of old chums still serving in Wattisham at the moment.

Hence why i said tread carefully;)

You have still to provide me with some evidence of 3 AC REME engineers being KIA, or did you mean fighter pilots? If the latter then not really valid in the discussion. They fly about hurtling missiles into buildings, they should expect retaliation fire. Did i ever claim the RN were not in Afghanistan? Where?

I take it, it was the fitter comment that got your back up. Perhaps when you leave you can come and work for me

I am in no way anti forces, I have no idea where you have got that from? My point made that the majorities of those in the military are not front line troops and thus not in any great degree of danger.

That is fact my friend.

As said before; tripe.

As said before; your embarrasing.

As said before; just PM me and give the thread back to the grown ups.