The 2010 Emergency Budget thread

[Guest sibon]

No I don't. But I do think that people should pay the same price for a product regardless of their income. Either people can afford things or they cant.

 

I agree. I also think that VAT is a useful part of a taxation system. Our current way of levying it is too simplistic though and it makes the tax unfair on the low paid.

 

I'd like a banded system. For example, we could have essential items taxed at zero, as we do now to a certain extent. We could then tax desirable items at, say 15% and luxury items at 25%. That way, everyone pays the same price for an item. If you want luxuries, you pay a bit more. It would be interesting to decide what sort of items fit into each band.

[mj.scuba]

This is very interesting.

 

The gap between rich and poor is huge.

 

Let's assume

Both work hard for their money.

Both do a valuable job.

 

So why is one paid hundreds of thousands and the other not?

 

Power.

Wealth equals power. Power equals influence.

They have the power to skew the system to their own advantage time and again.

 

It's much simpler than that. It's simple economics - supply vs demand. The market dictates the value.

[Grahame]

So if a specific worker creates a massive profit for their company should they be rewarded for it financially?

 

I said if someone contributes towards the wealth of the country, not company, it might be a multinational company and move the profits abroad?

[L00b]

I'd like a banded system. For example, we could have essential items taxed at zero, as we do now to a certain extent. We could then tax desirable items at, say 15% and luxury items at 25%. That way, everyone pays the same price for an item. If you want luxuries, you pay a bit more. It would be interesting to decide what sort of items fit into each band.

You're in luck, HMRC worked out a banded system for you already:

 

• standard rate - 17.5 per cent

• reduced rate - 5 per cent

• zero rate - 0 per cent

 

http://www.hmrc.gov.uk/vat/forms-rates/rates/goods-services.htm

 

Say, 'Thanks HMRC'

 

(Hint: regardless of banding or rating, everyone already pays the same price for an item )

[Grahame]

It's much simpler than that. It's simple economics - supply vs demand. The market dictates the value.

 

I was discussing this with my neighbour and he said "we have to pay them that because otherwise they can get a job abroad."

 

I said "well let them and see if they can, it is a very competitive world out there."

[JFKvsNixon]

I said if someone contributes towards the wealth of the country, not company, it might be a multinational company and move the profits abroad?

 

I know what you said. I asked if maybe one individual managed to make a big profit for his employer, should that person be well paid for it?

[Wildcat]

So, why begrudge someone on an equivalent footing who has achieved the same level in the private sector For that is the tone of your argument.

 

I was putting in context your begrugement of the public sector and reasons for why they should be targetted specifically to foot the bill for the banker's crisis.

 

Again, some facts if you please? rather than guesstimations?

 

It should have been 13% less pay. From an IDS Study comparison last year. IDS being leading pay experts.

 

http://www.pcs.org.uk/en/news_and_events/news_centre/index.cfm/id/FA6EFBE0-1760-41D8-817FACE6DDED4482

 

Can I ask you to support your argument with examples based on mere mortals, rather than the Digby Jones and Fred-the-Shred of this world, which are very much the exception rather than the rule?

 

I didn't say they weren't the exception. I was pointing out the target for your jealousy was poorly directed.

 

Is where you work representative of the entire public sector? (genuine question)

 

Not entirely but public sector pay has been low, if not as low as where i work.

 

None of our directors, nor of any of our clients (and that includes some very very major household name businesses) have received any increase since 2009. We are niche service providers, our clients are primarily goods manufacturers/engineering companies. Several clients and many business acquaintances went to the wall in 2009/2010 (I won't claim that we are representative of the entire private sector, but still... pretty symptomatic due to the amount of evidence/happenstances).

 

That doesn't affect the generality which is that last year public sector pay increased by 1% and private sector pay by 2%. Expecting the public sector to make a pay cut in real terms to fund the bankers crisis is unfair and a cheap attack on a section of workers that bore no responsibility for this crisis and made no gains from it.

[Guest sibon]

You're in luck, HMRC worked out a banded system for you already:

 

• standard rate - 17.5 per cent

• reduced rate - 5 per cent

• zero rate - 0 per cent

 

http://www.hmrc.gov.uk/vat/forms-rates/rates/goods-services.htm

 

Say, 'Thanks HMRC'

 

Unfortunately, the 17.5 band seems to contain most of the things that you need to buy

 

It also omits my brilliant idea of charging 25% on Mercedes, Rolexes and food from Waitrose *

 

 

*This is a form of self harm.

[donuticus]

I agree. I also think that VAT is a useful part of a taxation system. Our current way of levying it is too simplistic though and it makes the tax unfair on the low paid.

 

I'd like a banded system. For example, we could have essential items taxed at zero, as we do now to a certain extent. We could then tax desirable items at, say 15% and luxury items at 25%. That way, everyone pays the same price for an item. If you want luxuries, you pay a bit more. It would be interesting to decide what sort of items fit into each band.

 

I think things already fall into categories by themselves, with some exceptions.

 

I need a new suit. I can buy one from Burtons for £100, Marks and Spencer for £200, or I can go more upmarket and have one tailored for me for about £500.

 

All these attract VAT at different rates if I choose to buy the luxury tailor made suit five times more VAT will go to the excheqeur (sp).

 

In essence your idea for a banded system of VAT already exists it's down to personal choice.

[espadrille]

http://www.telegraph.co.uk/finance/financevideo/yourmoneytheirhands/7846995/Investment-advice-what-the-Budget-means-for-you.html

 

It was tough , but it needed to be Grant Thornton comments.