March 2011 Budget thread.

It is budget time again and a chance for the chancellor to make some people happy, some people sad and some people indifferent.

So, what do you reckon he has up his sleeve? It is being rumoured he will do something to help the motorist, fags and booze will no doubt increase and I believe National Insurance Contributions are going up.

My main interest (apart from the price of beer) is the idea that he may combine income tax and National Insurance.

NI has long been just another tax, the money collected going into the general exchequer rather than being strictly allocated to individual's pension and benefit accounts. At least adding them together would clarify just what is being deducted from your pay packet instead of National Insurance being increased whilst the headline grabbing tax rate goes down.

I'm sure it would simplify things in the long run, but it would mean the headline rate of income tax going up to 32% - and that is never going to look good!

Borrowing will be up due to the wrong type of inflation. Bigger deficits, more debt.

Inflation figures out today show another "unexpected" rise. Who'da thunk it? Historically low interest rates, crazy mad money printing (QE and QE2) and we get inflation? How on earth did that happen?

Public borrowing hits record high for month of February

It's 1970s style stagflation ahoy.

What did that thoroughly discredited pillock Mervyn King have to say about inflation in 2005?

"If you let inflation expectations drift too far away from the target, you can end up in quite serious difficulty with a costly process to bring them back again." - Mervyn King, 2005

Still, at least he and the MPC are being "vigilant".

It is budget time again and a chance for the chancellor to make some people happy, some people sad and some people indifferent.

 

So, what do you reckon he has up his sleeve? It is being rumoured he will do something to help the motorist, fags and booze will no doubt increase and I believe National Insurance Contributions are going up.

 

My main interest (apart from the price of beer) is the idea that he may combine income tax and National Insurance.

 

NI has long been just another tax, the money collected going into the general exchequer rather than being strictly allocated to individual's pension and benefit accounts. At least adding them together would clarify just what is being deducted from your pay packet instead of National Insurance being increased whilst the headline grabbing tax rate goes down.

 

I'm sure it would simplify things in the long run, but it would mean the headline rate of income tax going up to 32% - and that is never going to look good!

I read about combining NI & income tax. Could cause problems for us retired taxpayers who are exempt from NI on an age basis though. IMO anything that simplifies taxes and benefits should be a winner in terms of reduced admin costs and simplicity of understanding. I'm always in favour of raised personal allowances, and I'd like to see co-habiting couples being able to share tax allowances.

The Independent online has forecast a 17p increase in a packet of cigarettes and up to 10p on a pint of beer.

I read about combining NI & income tax. Could cause problems for us retired taxpayers who are exempt from NI on an age basis though. IMO anything that simplifies taxes and benefits should be a winner in terms of reduced admin costs and simplicity of understanding. I'm always in favour of raised personal allowances, and I'd like to see co-habiting couples being able to share tax allowances.

It shouldn't be beyond the designers to be able to differentiate between a taxpayer at BR paying 32% and a pensioner at BR paying 20%.

There is a similar system at the moment for NI. The vast majority of people on PAYE pay the standard rate NI, table A, some married women and widows pay reduced rate using table B, pensioners pay NI using table C (employers NI only) etc.

It only takes a tick in a box (touch wood).

I reckon the super rich Chancellor will stick it to ordinary people in the budget and give tax cuts to the wealthy. He will also increase overseas spending, on things such as aid for nuclear powers and bombs for those the global capitalist club believe are harmful to a tiny corrupt elite maximising profit.

I reckon the super rich Chancellor will stick it to ordinary people in the budget and give tax cuts to the wealthy. He will also increase overseas spending, on things such as aid for nuclear powers and bombs for those the global capitalist club believe are harmful to a tiny corrupt elite maximising profit.

The cynics are right 9 times out of ten. I strongly suspect that this is not the tenth time.

Widely reported that tax thresholds to be raised again.

At least the tax cuts will help those who work and give them more money,as for the duty on fuel its dosn't give us owt,the goverment make more with the price going up all the time,if anything they should cap the duty they get off fuel.

At least the tax cuts will help those who work and give them more money,as for the duty on fuel its dosn't give us owt,the goverment make more with the price going up all the time,if anything they should cap the duty they get off fuel.

For medium and high earners the tax cut will be offset by the increase in National Insurance.