"If I were Chancellor…" blog discussion

This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.


Read Martin's "If I were Chancellor…" Blog.


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  • nomoneytoday
    nomoneytoday Posts: 4,866
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    I'd look to follow a very low tax, very low spend model.
    Then reduce the infrastructure needed to support it all...
  • JimmyTheWig
    JimmyTheWig Posts: 12,199
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    Simplify tax and benefits for those workings. Let’s stop taxing people in work then handing back the cash in benefits, just tax people on lower incomes less so work pays more.

    Martin, you've missed the point here.
    In a "traditional" family where the husband works and the wife looks after the children, the husband gets all the money coming in. Reduce his tax bill and that still happens. That's (a) not fair as the wife is doing plenty of work, just not paid employment and (b) dangerous if the husband is abusive and controlling it makes it very difficult for the wife to be able to make a break.

    I'm sure that there are ways they can make the whole process more efficient (e.g. we seem to get 4 A4 envelopes delivered to our house on the same day when there are changes in our tax credits), but I do think that the benefits should be paid to the homemaker.
  • JimmyTheWig
    JimmyTheWig Posts: 12,199
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    I also disagree, to some extent, about National Insurance being payable on savings interest. To be over the ISA limit the chances are that you've got enough money to be able to afford to pay extra "tax" on your interest.

    But that said, I think tax on interest should only be payable on interest over and above the rate of inflation. E.g. if you have £100 in a savings account earning 5%, but inflation is 4% you're really only earning 1%. So you should pay 32% tax on the £1 that you've earned.
  • I don't want to be chancellor but I wish they would sort out the road tax, the current system is totally random bring back the flat rate regardless of what your car is system we are all driving on the same road.
    Nothing to see here, move along.
  • esallyhyde
    esallyhyde Posts: 14 Forumite
    I would reduce Income tax to 10% across the board - no free pay, so everyone pays a fair rate. If someone has the determination to do better for themselves why should they be penalised by paying more tax. I would also ensure all loopholes were closed so EVERYONE had to pay the 10% whack (look out Wayne Rooney etc. )This will put more money back in people's pockets to allow them to spend more, thereby generating the economy.

    Benefits would have to be capped, no-one should be making a good living by being on benfits when they are well enough to work. There has to be an incentive to work, so lower tax and capped benefits would be the push a lot of people need. No-one should be paid more in benefits than people are being paid as minimum wage (less deductions). The benefit system should also be run like a bank account, so if you don't pay in, you can't draw out. In effect, if you won't work, you won't get benefits until you have done some work.

    Anyone being paid by the Public sector would not be allowed to earn more than £52K a year (that's a grand a week!) If they can't live on that sort of money (when many don't even get that a MONTH) they aren't fit to do the job they are in. This would cover local Government, NHS, Police etc. and should save us millions a year to start.

    Child benefit to be reduced to first child only. We are being over-run and we are running out of resources. We need to keep the population down, not increasing, as we don't have enough homes, schools, hospitals, jobs for all that live here now, so if we all kept families smaller, we would save on expenses for building all the extras above. It is a knock on effect, more people need more stuff, less people, less stuff. Simple.

    VAT should never have been increased to 20%, it is killing this country. When it dropped to 15% it did not kick start the economy as Mr Darling hoped for, so by raising it, it is most certainly a wrong move. Reduced to 10% is much fairer and easier on our pockets.

    More should be done to enourage people to start up their own businesses, particularly manufacturing. We make next to nothing in the UK now, compared to say 20 years ago, it can't go on, we have to change it and make more of the stuff we need, here in the UK. Too many companies are moving their production plants abroad as it is too expensive to stay in the UK, meaning loss of jobs, taxes etc. Help companies / individuals to stay and work here, more benefits to the country.
    Any good for starters?
  • daaave
    daaave Posts: 703
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    Make corporation tax progressive.

    Or is that a bit too progressive?
    From feudal serf to spender, this wonderful world of purchase power ;)
  • IcyEars
    IcyEars Posts: 686
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    esallyhyde wrote: »
    Child benefit to be reduced to first child only. We are being over-run and we are running out of resources. We need to keep the population down, not increasing, as we don't have enough homes, schools, hospitals, jobs for all that live here now, so if we all kept families smaller, we would save on expenses for building all the extras above. It is a knock on effect, more people need more stuff, less people, less stuff. Simple.

    It'll be compulsory contraception next!
  • Minerva_2
    Minerva_2 Posts: 214 Forumite
    If I was the chancellor, I would honour my party's election manifesto promise to raise the threshold for inheritance tax to £1 million.

    We are not rich people but live in a part of the country where a bog standard 3 bed semi can easily be worth £600,000!
    My parents lived in the same house for 50 years, now I live with my widowed mother and I dread the day that I will have to sell the home that I grew up in to pay the government, while the big corporations get tax breaks and the super rich have "tax avoidance" schemes.

    OK, rant over!
  • Onyourcase
    Onyourcase Posts: 154 Forumite
    I'm of the thought that the chancellor isn't that bright. Yes, simplifying things sounds like a good idea, but the complicated bits were initially put in place to make things fairer for some people. So, simplifying actually makes things less fair.
  • We live in a capitalist society that favours the rich and punishes the poor, if I was chancellor I would take action to stop the gap between rich and poor for ever getting wider.
    No one in my world would be able to have an income of more than £250,000. (thats plenty to live on)
    Doctors, nurses, policemen, firemen, soldiers etc would be some of the highest earners, while tv celebrities, sports people would be some of the lowest income earners.
    Reason!! because I believe those who contribute to the well being of society, health and security deserve to be paid for making our lives better.
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