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MoneySavingExpert
Chair, Martin Lewis · Editor, Marcus Herbert
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If these companies are dishonest i'm quite interested to know how much extra tax you pay that you don't legally have to?.
Look at the IFS analysis of distributional impact of the tax and benefit changes. The richest 10% have lost more than average, in cash as well as percentage of income terms.
The poorest have been hit worse than average too, you can't really cut benefits without doing that, but we still have one of the most generous benefits system in the world for those at the bottom. I know as I do voluntary work advising people on benefits.
Other countries have better contributory benefits, like state pension and unemployment benefit which you have to earn, but for non-contributory benefits the UK is one of the most generous countries in the world.
We also have far more people on disability benefits than most countries, see https://www.theguardian.com/society/2010/nov/24/young-british-claim-disability-benefits
We're not really that much sicker than other countries. Our benefits system over the years has allowed more and more people to fit the criteria of "disabled" and it's got out of control. The Tories are trying to do something about it.
Under Labour for 12 years and 11 months of their 13 years in power 1997-2010, the top rate of tax was 40%. They put it up to 50% just before the 2010 election as an elephant trap for the Tories, so they could claim "ooh look at the Tories giving tax cuts to millionaires" when they put it back down again. In fact they didn't put it all the way back down, it's now 45%, but the same claim was made.
The pension annual allowance, which is an easy way to avoid tax for the rich, was about £250,000 under Labour, the Lifetime Allowance was £1.8Million. Now the annual allowance is £40,000, the lifetime is £1Million.
The Tories have shafted the rich. And they now want to effecively increase inheritance tax on the rich through their manifesto promise to take their house into account for at-home care costs. This will hit the rich, the poor won't be affected. They haven't properly accounted for behavioural change. Do they really think people on £80k+ and corporations won't act differently if they're being shafted for tax? As the IFS have pointed out: https://www.ifs.org.uk/publications/9259 They need to be honest about it. More spending requires more tax on ordinary people. Look at the only really successful "socialist" countries in the world, like Sweden. They have about 32% income tax, with a personal allowance of just £1700, they have 31% NI, they have 25% VAT which is on far more stuff than here.
If Labour were promising that, they'd have some credibility. Telling people they'll massively increase spending but that someone else will pay, surely people can't possibly be stupid enough to believe that?
If I was Corbyn I'd tax them with hindsight for previous years when they've dodged the proper rate - and change the law if necessary to do so.
Someone complains their son's benefits are too low. Nobody stops to think, hang on a minute, that sounds far too low, it can't be right. Everyone assumes it's correct till I come along. I see this all the time in my work. People under-estimate what they're entitled to, partly because they believe all the propaganda about the extent of the cuts.
Everyone's going to suffer if we start imposing higher taxes and regulation on business, they already have a strong incentive to locate elsewhere because of Brexit. Less jobs, less taxes etc.
And the NHS is going to suffer if we start taxing the "rich" which will include doctors many of whom are on well over £80k, and many came from abroad to work here, why would they stay, or why wouldn't they take early retirement etc. Doctors are already doing that because of cuts in pension tax allowance.
But people will be selfish - they want something for nothing, something they think other people will pay for. Except it won't work. As the IFS have pointed out in fairly strong terms, and they know what they're talking about.
Feel free to quote one line and reply with a soundbite. That's all most people seem capable of these days - I blame Twitter.
The tax system is very complicated and it is difficult to close down one loophole without unintended consequences opening another. It would be nice to think that the tax code will be completely re-written, but that would take quite some considerable time.