Corbynomics: A Dystopia

mrginge

setmefree2 wrote: »

Indeed. The tax burden is currently the same as the mid 80s.

Also.

I think it's highly unlikely a Tory government will increase the tax burden further and there is no chance of a Labour government any time soon.

Only jezza's magical money tree can save us.

Filo25

setmefree2 wrote: »

The simple fact is that young workers won't be able to shoulder boomers health care costs even if they wanted to. The levels of tax they face are eye watering. I have had this argument many times in the past with Martin Lewis (re student loans.)

Student loans were introduced in 1998 - 19 years ago. These students are now are at least 37. They face really high marginal tax rates

For income levels of between £17k (pre 2012) and £21k (post 2012) and above this is the marginal tax rates that young workers face.

At basic rate tax levels (From £17k To £43K)

NI = 12% Income tax 20% St Loans = 9%

Marginal tax rate = 41%

At higher rate tax level( From £43k to £150k) the marginal rate becomes
NI = 0% Income Tax 40% St Loans = 9%

Marginal Tax rate = 49%

Over £150k the marginal tax rate = 54%

So young people face marginal tax rates of 41% plus from income levels of £17k to £21k. This is clearly unacceptable.

Anybody who things the under 40s can be taxed more are nuts - frankly.

So, yes boomers are either going to have to fund their own health care through the tax system, get private health insurance or suffer the consequences imho.

You can stick an extra 20% on the effective marginal rate between 100-122k due to the gradual loss of the Personal Allowance in that band.

It will be interesting to see if ideas like the Land Tax get traction in an attempt to broaden the tax base.

Failing that, there's always the option of even more QE and just never repaying that debt

Thrugelmir

mrginge wrote: »

To be fair we didn't also have 20% VAT back then.

A pair of Levi's were very expensive though. Same with decent clothes in general.

antrobus

setmefree2 wrote: »

...The Government Actuary’s Department says it is costing £6bn a year....

Compared to what?

Had the bSP been linked to CPI inflation only, spending might have been around £67.01 billion – around £1.08 billion less than was in reality the case.

See HoC briefing paper Number CBP-07812, 3 February 2017
http://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-7812

Unless your are going to cut the bSP, or indeed the nSP, pensions are going to be at least uprated by CPI, aren't they? After all, don't the recipients have a tendency to actually register a vote?

Besides, as this is the Corbynomics thread, shouldn't we mention that the Corbyn Labour Party has commited itself to the retention of the triple lock?

davomcdave

It's hard to see how taxes can be increased much from where we are. I think the only solution is for the Government to spend a lot less.

antrobus

davomcdave wrote: »

It's hard to see how taxes can be increased much from where we are....

It's not a problem increasing taxes. It's quite easy, you have one of these Budgets and that chancellor chap or chapess announces the bad news. The current lot have managed to raise a few extra billions, so it can't be that difficult.

davomcdave wrote: »

.... I think the only solution is for the Government to spend a lot less.

Got any suggestions? I'm sure that Mr Hammond needs all the help he can get.

Fella

An appropriate article for this thread

http://www.spectator.co.uk/2017/02/britain-under-corbyn-just-look-at-venezuela/

Unsurprisingly Corbyn not only demonstrates his dangerous & stupid beliefs, but doesn't even have the courage to stand by them when they're proved so misguided.

Killmark

setmefree2 wrote: »

The simple fact is that young workers won't be able to shoulder boomers health care costs even if they wanted to. The levels of tax they face are eye watering. I have had this argument many times in the past with Martin Lewis (re student loans.)

Student loans were introduced in 1998 - 19 years ago. These students are now are at least 37. They face really high marginal tax rates

For income levels of between £17k (pre 2012) and £21k (post 2012) and above this is the marginal tax rates that young workers face.

At basic rate tax levels (From £17k To £43K)

NI = 12% Income tax 20% St Loans = 9%

Marginal tax rate = 41%

At higher rate tax level( From £43k to £150k) the marginal rate becomes
NI = 0% Income Tax 40% St Loans = 9%

Marginal Tax rate = 49%

Over £150k the marginal tax rate = 54%

So young people face marginal tax rates of 41% plus from income levels of £17k to £21k. This is clearly unacceptable.

Anybody who things the under 40s can be taxed more are nuts - frankly.

So, yes boomers are either going to have to fund their own health care through the tax system, get private health insurance or suffer the consequences imho.

Your not factoring pension contributions so by 2019 you may as well add another 4% for those auto-enrolled. If auto-enrollment fails to lead to significant numbers saving via pensions, then it is inevitable that the scheme will change and not allow you to opt out, unless you have existing provision provide equal or greater benefit.

However the State Pension will have to be means tested in the future in many cases 4% isn't going to be enough to provide a reasonable standard of living in retirement.

davomcdave

Fella wrote: »

An appropriate article for this thread

http://www.spectator.co.uk/2017/02/britain-under-corbyn-just-look-at-venezuela/

Unsurprisingly Corbyn not only demonstrates his dangerous & stupid beliefs, but doesn't even have the courage to stand by them when they're proved so misguided.

For those that prefer to hear it from the man himself:

https://twitter.com/jeremycorbyn/status/309065744954580992?lang=en

Thanks Hugo Chavez for showing that the poor matter and wealth can be shared. He made massive contributions to Venezuela & a very wide world

Corbyn really is a Grade A moron. Please God he's unelectable. Imagine this clown in Number 10. He's worse than Trump and there are nothing like as many checks and balances in the British system as in the US. Plus he wants to get rid of the House of Lords, one of the few checks in the system.

The best we can hope for is that he destroys the Left for a generation as Foot did before him.

TrickyTree83

davomcdave wrote: »

For those that prefer to hear it from the man himself:

https://twitter.com/jeremycorbyn/status/309065744954580992?lang=en



Corbyn really is a Grade A moron. Please God he's unelectable. Imagine this clown in Number 10. He's worse than Trump and there are nothing like as many checks and balances in the British system as in the US. Plus he wants to get rid of the House of Lords, one of the few checks in the system.

The best we can hope for is that he destroys the Left for a generation as Foot did before him.

There seems to be a lot of love for left wing nut jobs in the media and in particular from other left wing not jobs, just look at Trudeau eulogising Castro.