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

Mr_Mumble

StevieJ wrote: »

Ahh so these forecasts have suddenly become the oracle.

In defense of the unions you were quoting GAD figures, via the Hutton report, as gospel two weeks ago.

Now the GAD - along with pretty much every actuary on the planet - has been consistently wrong for decades. That's why we are in the unbelievable mess we're in: fantasy land defined benefits that take no notice of real world economic realities. Yet the OBR who're making a fist of these realities by using corporate accounting rather than dodgy government standards should be ignored... predictable.

StevieJ wrote: »

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

Which is why benefits continue to be increased at 4.5% while NICs are being put up on workers who see wage growth at only 2%. Hmm.

geneer

Pete111 wrote: »

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

Property bulls are (at least partly) responsible for the property bubble, the property crash, the economic meltdown, the bail out, and correspondingly the dire state of the Governments books.

Which is absolutely a factor in our apparent inability to deal with the silverhaired massive.

Still, its likely the boomers will have to spend their hard earned and much deserved "equity" on care in their dotage, so that should help a bit.

kabayiri

It really does appear that we have no idea what a sustainable future UK economy would comprise, never mind how we get there.

The result ? Living standards will drift downward more for certain groups than others.

I was recently in Copenhagen. This is a city considered to have a great quality of life, yet many working families there only run one small car. Here we almost assume the right to 2 cars per family.

Which society is more likely to have a sustainable lifestyle ?

We might as well face a future now where we have to pay for certain medical services, and make a contribution to our rest home costs, perhaps through a charge on our property.

vax2002

The state is larger than the private sector, until that balance is redressed so tax receipts of the private sector out weigh the spending on state then the situation will only ever get worse.

abaxas

kabayiri wrote: »

It really does appear that we have no idea what a sustainable future UK economy would comprise, never mind how we get there.

The result ? Living standards will drift downward more for certain groups than others.

I was recently in Copenhagen. This is a city considered to have a great quality of life, yet many working families there only run one small car. Here we almost assume the right to 2 cars per family.

Which society is more likely to have a sustainable lifestyle ?

We might as well face a future now where we have to pay for certain medical services, and make a contribution to our rest home costs, perhaps through a charge on our property.

The costs of running 3 cars (one newish and two older) is about the same as running 1 new car every 3-5 years.

Obviously you dont get the lovely 'newness'. But I dont care, I just want the 8k it saved me.

Nosht

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.

</H1>

No problem with this extra tax as long as it is TEMPORARY & is reduced to normal when the crisis is over.

Regards,

N.

peakoil_2

geneer wrote: »

Property bulls are (at least partly) responsible for the property bubble, the property crash, the economic meltdown, the bail out, and correspondingly the dire state of the Governments books.

bit of a tenuous link though.

kabayiri

abaxas wrote: »

The costs of running 3 cars (one newish and two older) is about the same as running 1 new car every 3-5 years.

Obviously you dont get the lovely 'newness'. But I dont care, I just want the 8k it saved me.

To run fewer cars, or older cars for longer, would take an adjustment.

But this country has had to adjust to changing situations in the past, so why not in the future ?

I just think we have to recognise the need to adapt our lifestyles.

I'd hate to pay 13p more in taxes of whatever sort, but could I adapt and cope? Yeah, I think so.

chewmylegoff

geneer wrote: »

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

not really, because we can only increase VAT to 25% under EU rules.

peakoil_2

chewmylegoff wrote: »

not really, because we can only increase VAT to 25% under EU rules.

The EU had loads of rules about running deficits as a percentage of GDP, etc. They weren't adhered to, so why should any others?