Con-Lib agreement on a £10k personal allowance for income tax?

Pete111

Leaving aside the concept of why tax credits are needed I've often wondered why the (apparently extremely complex) system of tax credits is not managed via the tax code for those on PAYE - after all it's surely just a means tested extension of your tax free allowance

Surely this would be a more efficient way of doing it for the majority of recipients?

ninky_2

mitchaa wrote: »

Do they?

I do not think that is right for the most obvious of reasons. I would suspect it's less than 20% and nowhere near 50%

according to this 19 percent earn more and a further 25 percent earn the same. (okay that's 44 percent not 50 but still).

http://www.dailymail.co.uk/news/article-1247515/One-women-earn-partner.html

zygurat789

Mr_Mumble wrote: »

The Conservative manifesto states tax credits will only be withdrawn for households with incomes above £40,000 - it seems highly unlikely they could get through measures that reduced tax credits on household incomes much below that, certainly not £6,500! Of course someone on such a low income may have to worry about other benefit losses but even Labour were committed to rejigging the likes of housing benefit.


Those working 2-3 part-time jobs on lower incomes may be worse off relative to others on low incomes after the changes but they wouldn't be worse off than before, assuming, there is little change to NICs (which admittedly would make the system more complex as the aligning of NIC and income tax bands that was taking place would presumably be abandoned.)

Agree on the VAT thing, it is relatively regressive compared with most other taxes. I don't personally like VAT but it is a very easy way for politicians to raise money. Our VAT rate is already very high compared to most non-EU first world countries: Japan (5%), Canada (5% national + small regional), Switzerland (8%), US sales tax (nil to about 10%), Australia (10%), South Korea (10%) and New Zealand (12.5%). Its only Europe that consistently has such high consumption taxes and oddly enough economists say Europe, especially Germany, doesn't consume enough!

The tories said they wouldn't double VAT and then increased it from 8% to 15%. Don't even try to argue that it wasn't doubled it was a lie.
The argument was that NIC were abolished in favour of income tax
They never did try very hard

molerat

Gets my vote ......... but my vote didn't seem to make any difference last week so why should it make any difference now

zygurat789

Thrugelmir wrote: »

Child poverty is still rising. Despite Labour's 2005 pledge to reduce it. A fundamental reform of the tax \ credit system is required.

I know of single people with school aged children who have found work to fit their childcare and school arrangements. By no means easy but possible.

I did say pre-school age. Now our grandchildren are at school, not having starved to death as a previous poster suggested, she has got a job, at a school.

ALIBOBSY

Re the VAT increases I reckon so called unhealthy foods such as greasy takeaways could take an extra hit.
The reality is that the old chestnut about VAT hitting the poorest is a simplistic view to say the least.
If you are on benefits you get your rent covered and the rest is only to cover the bare minimum of living costs. This should only be heating water and basic electric plus food.
Now I do worry about fuel having VAT on it, but the vast majority of food particularly real ingredients are zero rated. If on basic benefits (and I am not including the genuinely disabled and those unable to work) you shouldn't have wide screen TVs, sky boxes, alcohol and cars, so VAT rises on stuff like that isn't really effecting people on benefits unless they choose to buy things they should be working to get instead.

It needs to get harder to live on benefits and easier to go out and work and live on minimum wage(and just above it). Once the number on benefits is cut any surplus could ensure that the small minority who are really unable to work are given a decent amount to live on and looked after or supported in working as there are some who may have physical issues and would love to work but they and potential employers may need help and support to make it happen.
Perhaps the £10k allowance could be brought in in stages over the parliment, this may be the agreement?

ali x

mitchaa

ninky wrote: »

according to this 19 percent earn more and a further 25 percent earn the same. (okay that's 44 percent not 50 but still).

http://www.dailymail.co.uk/news/article-1247515/One-women-earn-partner.html

So 56% of men earn more with 81% of men either earning more or the same.

ILW

Thrugelmir wrote: »

Child poverty is still rising. Despite Labour's 2005 pledge to reduce it. A fundamental reform of the tax \ credit system is required.

I know of single people with school aged children who have found work to fit their childcare and school arrangements. By no means easy but possible.

All depends on the definition of child poverty. I believe the current definition is as a percentage of average earnings per household. On that basis it will never go away. Judging by some of the chavs round my way, you are consisdered to be in poverty if you only have Sky Sports and 1 mobile phone and 1 large screen telly per person. It also appears to bse possible to take 2 week foregn holidays and smoke 40 a day whilst living in "poverty" Happy to be corrected though.

mbga9pgf

mitchaa wrote: »

Mbga9pgf earns around £50k as an RAF officer if i remember correctly. Not sure if his wife works but can't see why he would be out of pocket.

If you think it would be a free givaway think again. It would cost you a lot more in other areas. I think if it were funded by a cut in Benefits to the !!!!less, this is something that would get widespread support

mbga9pgf

Thrugelmir wrote: »

Child poverty is still rising. Despite Labour's 2005 pledge to reduce it. A fundamental reform of the tax \ credit system is required.

I know of single people with school aged children who have found work to fit their childcare and school arrangements. By no means easy but possible.

There is no such thing as poverty in the UK