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

mitchaa

mbga9pgf wrote: »

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

Funded by an increase in VAT surely? 20-21%?

We have a choice about paying VAT, no choice about income tax rates and take home pay though.

Fingers crossed.

Saying that, no doubt they will raise the threshold to £10k, increase VAT to 20% to pay for it and at the same time reduce the high rate band down to compensate for the increase in the personal allowance. I'm not sure they will give higher earners an extra £60pm in their pay packets if it is not necessary.

ninky_2

mbga9pgf wrote: »

There is no such thing as poverty in the UK

if you count trafficked people there definitely is.

zygurat789

ALIBOBSY wrote: »

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

You are mixing up the poor and those on benefits. You can be poor and not on benefits and you xcan be on benefits and not be poor. And, yes, the minimum wage needs to be increased, it really is not easy to live on just under £210pw to pay for living travel etc.
You are also misunderstanding about VAT "hitting" people. Whilst it is true that the more you spend the more VAT you contribute, those who cannot afford to buy an item because of the VAT are also "hit" by it although they do not contribute. This "hit" is arguably harder than the fuirst one.
Oh and did you know that a carton of orange juice (one of your five a day) carries VAT.

chucky

mbga9pgf wrote: »

There is no such thing as poverty in the UK

very true but it's always good to have post full of soundbites

Really2

ninky wrote: »

if you count trafficked people there definitely is.

Our traffic wardens get paid.

nicko33

zygurat789 wrote: »

Oh and did you know that a carton of orange juice (one of your five a day) carries VAT.

What about just oranges, on their own, without extra processing and packaging?

StevieJ

mitchaa wrote: »

Funded by an increase in VAT surely? 20-21%?

We have a choice about paying VAT, no choice about income tax rates and take home pay though.

Fingers crossed.

Saying that, no doubt they will raise the threshold to £10k, increase VAT to 20% to pay for it and at the same time reduce the high rate band down to compensate for the increase in the personal allowance. I'm not sure they will give higher earners an extra £60pm in their pay packets if it is not necessary.

Surely it would be funded by an increase of lower rate tax to 25% and a reduction in higher rate band, to make it tax neutral.

StevieJ

zygurat789 wrote: »

Oh and did you know that a carton of orange juice (one of your five a day) carries VAT.

A carton :eek:

Really2

zygurat789 wrote: »

Oh and did you know that a carton of orange juice (one of your five a day) carries VAT.

Pressing and packaging is adding value!

ALIBOBSY

zygurat789 wrote: »

You are mixing up the poor and those on benefits. You can be poor and not on benefits and you xcan be on benefits and not be poor. And, yes, the minimum wage needs to be increased, it really is not easy to live on just under £210pw to pay for living travel etc.
You are also misunderstanding about VAT "hitting" people. Whilst it is true that the more you spend the more VAT you contribute, those who cannot afford to buy an item because of the VAT are also "hit" by it although they do not contribute. This "hit" is arguably harder than the fuirst one.
Oh and did you know that a carton of orange juice (one of your five a day) carries VAT.

No I know what I was saying, that is why I qualified the fact that it should be harder to stay on benefits and easier to work. I agree with the 10k allowance and would also turn council tax into say 1% on income tax which would mean huge savings in admin as well as ensuring a fairer system where instead of all or nothing the "local tax" is in proportion to your income.

You are agreeing with me than re the orange juice which I did know about, unprocessed fruit and veg as well as milk is zero rated. Which is my point if you live frugally as they did during the war and as many do over on old style you would buy very little that wasn't zero VAT. Although I still think womens sanitary products should be zero rated, hardly a luxury lol.

If you can't afford to buy an item you aren't hit, you either save up, get a job (or better/second job) or live without it. I would like a new car, but you cut your cloth as they say.

ali x