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Ed Balls calls for emergency tax cut
Comments
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Graham_Devon wrote: »That's some nicely picked cherries.
Heres what the article has to say:
Hardly - you think that cutting taxes while there is a deficit is wrong full stop.
The IMF or more or less any economist would say that in the right circumstances, a correctly targeted tax cut will generate more revenue than it costs.
Is the circumstances right at the moment? I'd say no, but another 6 months of zero growth and i will happen.US housing: it's not a bubble - Moneyweek Dec 12, 20050 -
Funny how you seem to forget the large increases in Income tax and NI (ie another form of income tax) + lowering of tax bands in the last 18 months...
We are ALL paying - rich and poor alike.
No I don't forget - I get hit too.
I could list all the others ways we pay tax and then wonder how we actually "live on what is left".
I also appreciate that £40K isn't mega bucks these days for the society we live in but still loads more than many earn.
You can't escape the fact that it is regressive and hits those on lower income more.
We do have choice if we can afford to splash out and thus pay more."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Kennyboy66 wrote: »Hardly - you think that cutting taxes while there is a deficit is wrong full stop.
Alright I'm out. Not having this words put in mouthes again. All I'm trying to do is have a discussion about whats actually in the article. failing miserably though, as the political agenda is taking precedence here.0 -
Graham_Devon wrote: »Alright I'm out. Not having this words put in mouthes again. All I'm trying to do is have a discussion about whats actually in the article. failing miserably though, as the political agenda is taking precedence here.
what words did anyone try and put in your mouth.
I would agree though that economically and politically a VAT cut is hardly very likely or sensible.US housing: it's not a bubble - Moneyweek Dec 12, 20050 -
grizzly1911 wrote: »You can't escape the fact that it is regressive and hits those on lower income more.
We do have choice if we can afford to splash out and thus pay more.
The only reason VAT hits those on lower incomes more is because those on higher incomes save a greater percentage of their income whereas those on lower incomes tend to spend all their income, therefore all their income is subject to VAT (other than expenditure on VAT exempt goods)
Those on higher incomes, tend to defer their spending, however they do usually spend it eventually and therefore pay the VAT on their expenditure at that point.
Personally, I'm in favour of a full review of VAT, starting with a full review of the VAT exempt, zero rated and reduced VAT goods, to ensure that all essentials are actually VAT free. Remove VAT on electricity, gas and fuel (or decrease the rate even further to say 2%), all fresh food VAT free, and introduce a new higher rate VAT (eg 30%) for unhealthy food & drink, such as crisps, chocolate, mineral, cakes, buns, microwave meals etc. As long as all essentials are actually VAT free, I have no objection to increasing it by another 5%. To me it is fairer to increase VAT, than to increase income tax, as it is the tax everyone pays!
VAT is the one tax we have a choice in paying as essentials are not taxed, therefore the benefit generation should not actually be paying any VAT, as they shouldn't be getting benefits high enough to enable them to buy non-essentials!Weight loss challenge, lose 15lb in 6 weeks before Christmas.0 -
seeing that a large majority of our growth was consumer led, cutting people's ability to spend will just push things one way and it won't be the pretty...
cuts that go too far probably won't work, there needs to be some consumer driven growth too.
Agree that consumer spending on the back of debt is an issue.
But if tax were "really" cut, for instance lower rate threshold to £10000 in one or two jumps then that might do it.
Consumers would spend to help the economy.
It is arguable that people spending on stuff is more effective (short term tactically) than Governemnt spending .
I don't think a small VAT reduction would do much though."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Graham_Devon wrote: »That's some nicely picked cherries.
Not dissimilar to politician speak then:rotfl::rotfl::rotfl:"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
but that's the thing though - we need a bit more than just cuts. we may need some sort of tax cut at some point - be it an income tax threshold increase or maybe even an income tax reduction to increase spending.grizzly1911 wrote: »Agree that consumer spending on the back of debt is an issue.
But if tax were "really" cut, for instance lower rate threshold to £10000 in one or two jumps then that might do it.
Consumers would spend to help the economy.
It is arguable that people spending on stuff is more effective (short term tactically) than Governemnt spending .
I don't think a small VAT reduction would do much though.
the problem with these threads is the OP and the usual suspects are trying to dismiss the suggestion because it's a Labour idea or they don't like the politician that suggested it.
it's a bit of a lame attempt.0 -
The only reason VAT hits those on lower incomes more is because those on higher incomes save a greater percentage of their income whereas those on lower incomes tend to spend all their income, therefore all their income is subject to VAT (other than expenditure on VAT exempt goods)
Those on higher incomes, tend to defer their spending, however they do usually spend it eventually and therefore pay the VAT on their expenditure at that point.
Personally, I'm in favour of a full review of VAT, starting with a full review of the VAT exempt, zero rated and reduced VAT goods, to ensure that all essentials are actually VAT free. Remove VAT on electricity, gas and fuel (or decrease the rate even further to say 2%), all fresh food VAT free, and introduce a new higher rate VAT (eg 30%) for unhealthy food & drink, such as crisps, chocolate, mineral, cakes, buns, microwave meals etc. As long as all essentials are actually VAT free, I have no objection to increasing it by another 5%. To me it is fairer to increase VAT, than to increase income tax, as it is the tax everyone pays!
VAT is the one tax we have a choice in paying as essentials are not taxed, therefore the benefit generation should not actually be paying any VAT, as they shouldn't be getting benefits high enough to enable them to buy non-essentials!
I totally agree with what you have said.
I would also go one stage further and tax luxuries more, say 10/20 . Latest generation products posibly, mobile phones, IPADs, SKY and such like.
Supermarket booze, fags.
Chocolate is already taxed;)"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Kennyboy66 wrote: »
What if the tax cut was targeted towards employers taking on additional staff - would that still be a bad idea.
Possibly for smaller employers.
Not for the big boys though that offshore their income for tax. It is the one way of making them pay tax through NI that they can't avoid so easily IMO."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0
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