OBR: 13p on income tax to fix hole in the nation’s future finances

geneer

http://www.telegraph.co.uk/news/politics/8636229/OBR-13p-on-income-tax-to-fix-hole-in-the-nations-future-finances.html

Theres always a choice.
Would you like that added to income tax or vat.

Thanks again property bulls.

<H1>OBR: 13p on income tax to fix hole in the nation’s future finances

Britain faces permanent tax rises or spending cuts worth almost £60 billion as the costs of an ageing population make the public finances unsustainable, an official forecast has said.


The Office for Budget Responsibility (OBR), the Treasury’s independent forecaster, warned that demographic and social change will force the state to spend much more on health and social care, even as tax revenues fall.

The scale of the “fiscal gap” is equal to almost 13p on the basic rate of income tax, or 13 percentage points added to VAT.

To stop the national debt growing to unmanageable levels, the OBR said that years of austerity will be required even after the Coalition’s programme of cuts is over.

The OBR said that health spending will put the most pressure on the budget in the coming decades, meaning that making the National Health Service more financially efficient will be the most important issue facing future governments.

In its first study of the country’s long-term fiscal prospects, the OBR said that, without a change in government policies from 2016-17, “we would expect the budget deficit to widen sufficiently over the long term to put public sector net debt on a continuously rising trajectory as a share of national income”.

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abaxas

We could just tax pensions :P

StevieJ

Ahh so these forecasts have suddenly become the oracle.

StevieJ

abaxas wrote: »

We could just tax pensions :P

Why are they not taxed?

abaxas

StevieJ wrote: »

Why are they not taxed?

They are taxed as income. That doesnt mean we cant change the tax code of someone who is drawing a pension.

StevieJ

abaxas wrote: »

They are taxed as income. That doesnt mean we cant change the tax code of someone who is drawing a pension.

So they are paying tax like everyone else, why do you want to change their tax code? ah you think they should pay more than everyone else, I take it your parents are loaded so you think every other old person is?

abaxas

StevieJ wrote: »

So they are paying tax like everyone else, why do you want to change their tax code? ah you think they should pay more than everyone else, I take it your parents are loaded so you think every other old person is?

No,

Just offering a solution, where people pay for what they use.

StevieJ

abaxas wrote: »

No,

Just offering a solution, where people pay for what they use.

I think a few young families with education and hospital costs added to their tax bill could struggle on that one.

nw_man

They put 13p on income tax and I consider joining the ranks of the great unwashed ' lets grab a state benefit claim for life ' brigade.

StevieJ

nw_man wrote: »

They put 13p on income tax and I consider joining the ranks of the great unwashed ' lets grab a state benefit claim for life ' brigade.

They won't add 13p without chopping those benefits, so you are welcome to try.

Pete111

geneer wrote: »

http://www.telegraph.co.uk/news/politics/8636229/OBR-13p-on-income-tax-to-fix-hole-in-the-nations-future-finances.html

Theres always a choice.
Would you like that added to income tax or vat.

Thanks again property bulls.

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Umm....how are property bulls responsible for an ageing population making the public finances unsustainable?

Surely increasing house prices will force more and more into shoddy, damp, rented accomodation - potentially helping a rising percentage of crumblies to shuffle off this mortal coil a mite earlier and lessening the strain on the public purse?