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Debate House Prices
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Plan to change private pension inflation link
Comments
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So you don't believe that increases in council tax should be included in the calculation of inflation?
To be fair, there are limitations to all measures of inflation.
The main advantage CPI is it captures 'the substitution effect', RPI doesn't or at least not directly. The substitution effect states that as relative prices change, consumption patterns change (eg if butter goes up in price people will consume less butter and more margerine). That is why CPI is almost always lower than the RPI.
FWIW, when I rule the world, I'll use RPIX (RPI excluding mortgage interest) for such things.0 -
discretionary consumption............. gas, electicity (at 5%), telephone and mobiles usage, clothes (not smaller children's), shoes, car fuel, car servicing, house repairs, pots pans cups plates and a few more things I'm sure.
Not sure of your point here - def. of 'discretionary' - 'used according to person's judgement' - does that not apply to all these items?0 -
Old_Slaphead wrote: »Come on Stevie you're smarter than that.
VAT is imposed on discretionary consumption, council tax and personal tax isn't (they're based on your perceived ability to pay ie relative wealth).
So you are saying it is OK that certain members of society don't have to pay certain tax increases i.e. those on index linked pay/pensions are compensated for VAT increases
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Old_Slaphead wrote: »Not sure of your point here - def. of 'discretionary' - 'used according to person's judgement' - does that not apply to all these items?
Surely income tax is discretionary in your example, you could quit your job and do the benefits 'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
So you are saying it is OK that certain members of society don't have to pay certain tax increases i.e. those on index linked pay/pensions are compensated for VAT increases
No I'm saying quite the opposite my posting #98....
"Giving FS pensioners an uplift because council tax has gone up is effectively giving them a discount (whereas non-FS pensioners have to pay the full wack). That's not fair - we should all pay our dues".
FWIW I also think that indexation increases caused by VAT should also be taken out of the equation.0 -
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Old_Slaphead wrote: »Not sure of your point here - def. of 'discretionary' - 'used according to person's judgement' - does that not apply to all these items?
in which case virtually all spending is discretionary whether it attracts VAT or not0 -
Old_Slaphead wrote: »No I'm saying quite the opposite my posting #98....
"Giving FS pensioners an uplift because council tax has gone up is effectively giving them a discount (whereas non-FS pensioners have to pay the full wack). That's not fair - we should all pay our dues".
FWIW I also think that indexation increases caused by VAT should also be taken out of the equation.
But my simple point is, they are not taken out whether you think they should be or not.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
FWIW, when I rule the world, I'll use RPIX (RPI excluding mortgage interest) for such things.
Would seem the obvious thing to do.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Old_Slaphead wrote: »
Giving FS pensioners an uplift because council tax has gone up is effectively giving them a discount (whereas non-FS pensioners have to pay the full wack). That's not fair - we should all pay our dues.
But you think it is OK to give them a uplift because overseas student fees have gone up 'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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