Labour tax cuts ?

[Leekbrookgull]

Have now pay back later. Why not just slash basic rate tax for low and middle income earners ? None of this cut on Vat or more tax credits on kids. Put the POUND back in your pocket.

 

[Barrel of Fun]

Because we are potless and GB needs some ready cash as opposed to borrowing even more?

 

[Leekbrookgull]

Some of these !!

 

[Beach Hut]

2.5% VAT relief will not solve the problem.

 

[Nottseagull]

Some of these !!

Have you scanned and copied those yourself? If so, I believe its actually illegal !

 

[Gazwag]

Have now pay back later. Why not just slash basic rate tax for low and middle income earners ? None of this cut on Vat or more tax credits on kids. Put the POUND back in your pocket.

Say you earn £15k, a 1% cut in income tax will give £1.73 a week extra in your pocket.

Say you spend £50 a week on petrol/booze and fags a 2½% reducting in VAT will give you £1.25 in your pocket, that's without all the other things you pay VAT on.

Also a VAT reduction benefits everybody not just earners.

 

[Uncle C]

Say you earn £15k, a 1% cut in income tax will give £1.73 a week extra in your pocket.

Say you spend £50 a week on petrol/booze and fags a 2½% reducting in VAT will give you £1.25 in your pocket, that's without all the other things you pay VAT on.

Also a VAT reduction benefits everybody not just earners.

Also, the government wants to stimulate the economy by making people spend more. If you give an income tax reduction people could save it.
You only get the VAT benefit if you spend.

 

[TWOCHOICEStom]

Have you scanned and copied those yourself? If so, I believe its actually illegal !

No I think you'll find that's a sick bird.

 

[Mellor 3 Ward 4]

Two questions here please:

1. Should we really be encouraging people to go out and spend/borrow more, when it was exactly that which got us in this mess in the first place?

2. VAT - has the cost of implementing this reduction been thought through - especially as it is only a temporary measure, and will be reversed after a year/18 months?

 

[London Calling]

my concern wit VAT is, how will it be passed on?

If VAT was increased we would expect to see immediate rises on food etc prices.

But will we really be seeing Sid's cafe dropping 2.5% of his sausages and chips?

A slight drop in fuel could have had an equally if not an bigger impact?

 

[Uncle C]

Two questions here please:

1. Should we really be encouraging people to go out and spend/borrow more, when it was exactly that which got us in this mess in the first place?

2. VAT - has the cost of implementing this reduction been thought through - especially as it is only a temporary measure, and will be reversed after a year/18 months?

1. Hopefully will help spending and should not in itself encourage borrowing.

2. Thats a good point, and one that occurred to me, but I suppose with modern tills you can just take off 2.5% at check out and just display one big sign in the shop saying 2.5% off everything. Some places still advertise ex VAT prices. Normally they get up my nose, but for once in a couple of decades they are vindicated.

 

[Marshy]

N.I set to go up by all accounts.....

 

[Marshy]

1p rise so they are saying

 

[Gazwag]

my concern wit VAT is, how will it be passed on?

If VAT was increased we would expect to see immediate rises on food etc prices.

But will we really be seeing Sid's cafe dropping 2.5% of his sausages and chips?

Sid would see no change in the cost of his food purchased because what he is buying will be zero rated anyway, he will still charge the same but pay less VAT over so he will be more profitable and therefore more likely to spend more of his money on christmas presents.

 

[London Calling]

Sid would see no change in the cost of his food purchased because what he is buying will be zero rated anyway, he will still charge the same but pay less VAT over so he will be more profitable and therefore more likely to spend more of his money on christmas presents.

but what about Tom in the corner shop, he pays VAT on his goods, will he reduced all of his prices?

 

[Mellor 3 Ward 4]

1. Hopefully will help spending and should not in itself encourage borrowing.

2. Thats a good point, and one that occurred to me, but I suppose with modern tills you can just take off 2.5% at check out and just display one big sign in the shop saying 2.5% off everything. Some places still advertise ex VAT prices. Normally they get up my nose, but for once in a couple of decades they are vindicated.

But...

Will spending not be done using credit cards / HP etc ? - are you really saying that all new spending will be done either by cash or by people using credit cards that will be paid off at the end of the month?

I don't think it will - I just think more and more people will spend more, borrow more, and when taxes go back up to pay for all of this, will not have the means to repay it all.

Regarding VAT, I just see a lot of administration required, for a relatively small overall reduction in tax.

I do however like the idea of a 45% rate for those earning over 150k - they can afford it - however that will only bring in maximum 2 billion, and the govt is 100 billion in debt!

 

[Dick Knights Mumm]

Two questions here please:

1. Should we really be encouraging people to go out and spend/borrow more, when it was exactly that which got us in this mess in the first place?

My thoughts entirely. It is the economics of the mad-house. The same mad-house that says banks are not liable for their actions.

 

[Moshe Gariani]

I do however like the idea of a 45% rate for those earning over 150k - they can afford it

hear!hear!hear! rderpaperswavingsmilie:

tax 'em all

 

[Herr Tubthumper]

Have now pay back later. Why not just slash basic rate tax for low and middle income earners ? None of this cut on Vat or more tax credits on kids. Put the POUND back in your pocket.

Reducing tax brackets runs the risk of people simply saving any extra money they get in their pocket. The country needs to start spending again...so reducing prices in the shops via VAT encourages people to spend.

I have done my bit by spending way too much money on Portugese lager in The Prince Albert on Saturday night.

 

[BensGrandad]

I wonder how many pubs and clubs etc will knock off the 2.5% VAT. Not having a pop at the club but will they reduce the admission prices by that amount. I doubt very much whether many will it will be a cse of them making extra profit or losing less which ever it is. They may makea token gesture in pubs like 1p off a pint but as a number now round the price off to the nearest 5p it wont make much difference.

From the supermarkets it is easier they just adjust the VATable goods By taking it off at the end of the transaction as they do for money off or BOGOFF items.