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Debate House Prices


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The last taboo -raising income tax

Radiantsoul
Radiantsoul Posts: 2,096 Forumite
Part of the Furniture 1,000 Posts Combo Breaker
in Debate House Prices & the Economy
Why is there a taboo on raising the basic rate of income tax?

It seems fairer than raising endless indirect taxes and is similiar to raising NI.
«13

Comments

  • 12bdebt3
    12bdebt3 Posts: 446 Forumite
    Ninth Anniversary 100 Posts Combo Breaker
    It is a lot simpler to do but causes more direct problems becuse it automatically cuts straight into income. It is ok for people that have a fair bit of disposable income but for people that are on the breadline, which at the moment is probably over 1/3 of the country, cuts straight into their expenditure and they can't afford to pay things out.
  • zygurat789
    zygurat789 Posts: 4,263 Forumite
    Part of the Furniture Combo Breaker
    arrontdep wrote: »
    It is a lot simpler to do but causes more direct problems becuse it automatically cuts straight into income. It is ok for people that have a fair bit of disposable income but for people that are on the breadline, which at the moment is probably over 1/3 of the country, cuts straight into their expenditure and they can't afford to pay things out.

    So multiple bands at escalating rates, just as they do over the pond.
    The only thing that is constant is change.
  • Radiantsoul
    Radiantsoul Posts: 2,096 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    arrontdep wrote: »
    It is a lot simpler to do but causes more direct problems becuse it automatically cuts straight into income. It is ok for people that have a fair bit of disposable income but for people that are on the breadline, which at the moment is probably over 1/3 of the country, cuts straight into their expenditure and they can't afford to pay things out.

    I guess so, although a similiar effect occurs when thresholds are not raised. I prefer the withholding nature of income tax to the "utility bill" type approach of council tax.
  • 12bdebt3
    12bdebt3 Posts: 446 Forumite
    Ninth Anniversary 100 Posts Combo Breaker
    Radiantsoul wrote: »
    I guess so, although a similiar effect occurs when thresholds are not raised. I prefer the withholding nature of income tax to the "utility bill" type approach of council tax.

    Council tax is a pain, I like it being taken from my wages so I don't have to worry about it and there a bit less chance of there being an error.
  • ILW
    ILW Posts: 18,333 Forumite
    At least with indirect taxes, you can feel like you have a little control over what your money is wasted on.
  • 12bdebt3
    12bdebt3 Posts: 446 Forumite
    Ninth Anniversary 100 Posts Combo Breaker
    ILW wrote: »
    At least with indirect taxes, you can feel like you have a little control over what your money is wasted on.

    We have no control over what our tax money is spent on.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Freezing of 40% band will have an impact after a couple of years. With increasing numbers of people caught in the net.
  • lemonjelly
    lemonjelly Posts: 8,014 Forumite
    1,000 Posts Combo Breaker Mortgage-free Glee!
    Thrugelmir wrote: »
    Freezing of 40% band will have an impact after a couple of years. With increasing numbers of people caught in the net.

    Depending on wage inflation of course...;)
    It's getting harder & harder to keep the government in the manner to which they have become accustomed.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    lemonjelly wrote: »
    Depending on wage inflation of course...;)

    ....... and the full declaration of income (such as property letting). ;)
  • ILW
    ILW Posts: 18,333 Forumite
    arrontdep wrote: »
    We have no control over what our tax money is spent on.

    True, but at least with indirect taxes one has a little control over how much is paid.
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