TAX CUTS for 25 million people in Emergency budget

HAMISH_MCTAVISH

DaddyBear wrote: »

not good for house prices Hamish, as it takes a wage of £40k to afford a property in most Areas.

False.

Properties are widely available for sale in 11 out of the 12 regions of the UK for under 100K. And under 50K in 2 or 3 regions.

And the average FTB income is around 32K.

And of course, this will benefit the millions of working couples and potential housebuyers on less than 40K each, who could have a joint income of up to 80K and still benefit from greater after tax income under this plan.

Wehereas a person on 50K will lose just 0.3% of income, and on 100K just 0.7% of income. Which is so utterly insignifcant they won't even notice, let alone have it "squeeze" their house buying budget.

On the other hand, it looks like Sky subscriptions and sales of Plasma TV's are about to rise.

You really have no idea, do you?

Higher disposable income for 25 million people means sales of all sorts of things are about to rise.

Good for the economy, jobs, and of course ultimately the housing market.

dori2o

Just to throw my 2 pence in.

What happen to the promise of an allowance of £10k? Granted they may increase the allowance over the next 3-4 years to £10k, but would this not have happened anyway?

The one argument Cameron had against Labour was the NI increase, and he promised this would be reversed. What has happened to this promise?

VAT is likely to increase to 20% if not higher. This will impact almost everything we buy, including fuel. How is this protecting the motorist?

It just shows that no matter who is in charge of the asylum, they all spin the truth and rely on the headline makers to gloss over the finer details.

drc

If the personal allowance is raised to £10,000 over the next few years does this apply to everyone, even those earning over £50k and if not, how are they going to keep the personal allowance down for higher earners? Surely the higher personal allowance will help all in the long run, even the higher earners?

chris_m

drc wrote: »

If the personal allowance is raised to £10,000 over the next few years does this apply to everyone, even those earning over £50k and if not, how are they going to keep the personal allowance down for higher earners? Surely the higher personal allowance will help all in the long run, even the higher earners?

Indeed it will - however the change would affect a far smaller proportion of their income than it would for lower earners. eg someone on £100K would only see tax at 20% changed for ~£3.5K of their earnings, 3.5% of their income, whereas someone on just under £10K would pay no tax at all instead of 20% on 33% of their income.

Spartacus_Mills

HAMISH_MCTAVISH wrote: »

Tax cuts for 25 million people earning less than 35K.

Those earning over 40K will pay very slightly more, due to the NI increase.

http://www.telegraph.co.uk/news/newstopics/politics/7721618/Coalition-government-tax-cuts-of-140-for-workers-on-basic-rate.html

I think this is a pretty good idea.

I wouldn't even notice paying a few hundred quid more a year in tax, but the tens of millions on lower incomes will feel a real benefit from more disposable income.

Not the cuts the doomers had in mind for this emergency budget......:D

I'll be worse off but I am happy with it.

Spartacus_Mills

dori2o wrote: »

Just to throw my 2 pence in.

What happen to the promise of an allowance of £10k? Granted they may increase the allowance over the next 3-4 years to £10k, but would this not have happened anyway?

The one argument Cameron had against Labour was the NI increase, and he promised this would be reversed. What has happened to this promise?

VAT is likely to increase to 20% if not higher. This will impact almost everything we buy, including fuel. How is this protecting the motorist?

It just shows that no matter who is in charge of the asylum, they all spin the truth and rely on the headline makers to gloss over the finer details.

The allowance is going to be phased in.

The coalition have reversed the jobs tax element of the NI rise. It is now being paid by employees not employers. A superb compromise.

We will have to see what happens to VAT.