Supertramp Posted May 18, 2017 Share Posted May 18, 2017 I too was thinking about income tax and also Labours promise to raise the NMW to £10ph. My main concern was that upping the NMW would increase inflation leaving people earning NMW no better off and making everyone who earns more than NMW worse off. My idea was that instead of raising the NMW could we increase the money we are allowed to earn without paying tax to the level that someone on NMW earns therefore anyone on NMW does not pay any tax. My calculations are guesses but I used 37.5 hours a week and £7.40ph to give £14430 as a tax free allowance. I don't know what I would do to pay for the tax breaks but am open to suggestions. The Tories proposals are along those lines. Tax is not as easy as people think. The reason loopholes exist is because the government need to incentivise investment in order to create jobs/wealth and one of the ways to do this is via tax breaks. Link to comment Share on other sites More sharing options...
El Cid Posted May 18, 2017 Share Posted May 18, 2017 No, we would lose out massively because other countries wouldn't buy our exports they would buy them from other countries with a less aggressive tax. But our balance of trade is very poor, I believe small trade tariffs would help that. What would you suggest we do? Link to comment Share on other sites More sharing options...
Supertramp Posted May 18, 2017 Share Posted May 18, 2017 Wouldnt the Laffer principle suggest that incomes should be taxed at a low rate? Since it would be collected, because its easy to collect. So we would not lose out. How would we not lose out? The rest of the world is bigger than is. Link to comment Share on other sites More sharing options...
El Cid Posted May 18, 2017 Share Posted May 18, 2017 My idea was that instead of raising the NMW could we increase the money we are allowed to earn without paying tax to the level that someone on NMW earns therefore anyone on NMW does not pay any tax. Most of the tax on my wage is NI, should I still be paying that, it is a tax. ---------- Post added 18-05-2017 at 20:55 ---------- How would we not lose out? The rest of the world is bigger than is. We are doing poorly now, the EU imports more into the UK, than we export to them. It could not get worse. Link to comment Share on other sites More sharing options...
Supertramp Posted May 18, 2017 Share Posted May 18, 2017 But our balance of trade is very poor, I believe small trade tariffs would help that. What would you suggest we do? Well the first issue of a lot of issues with this is that they wouldn't be small. If the only tax is on sales and imports it would have to be absolutely ginormous. Like 80% or something ---------- Post added 18-05-2017 at 20:57 ---------- Most of the tax on my wage is NI, should I still be paying that, it is a tax. ---------- Post added 18-05-2017 at 20:55 ---------- We are doing poorly now, the EU imports more into the UK, than we export to them. It could not get worse. Of course it could get worse. I don't think you understand the basic concepts here. ---------- Post added 18-05-2017 at 21:00 ---------- Most of the tax on my wage is NI, should I still be paying that, it is a tax. ---------- Post added 18-05-2017 at 20:55 ---------- We are doing poorly now, the EU imports more into the UK, than we export to them. It could not get worse. We out a tariff of 50% on imports. The rest of the world retaliates. Why are consumers in the rest of the world going to pay 50% more for goods from the UK than from any other country in the world? Link to comment Share on other sites More sharing options...
Anna B Posted May 18, 2017 Share Posted May 18, 2017 We now have to pay much of our health care. We have to pay upwards of £30,000 to go to University. More and more services are now 'self-funding' (in other words we have to pay for them.) Care homes costing over £100,000 each. Etc. etc. Where are the corresponding tax cuts so we can pay for all this? House prices are huge, rents are huge, utilities are ridiculously expensive, travel costs to work are rising, food prices are going up, prices across the board are going up. Wages are down. Never mind the government being able to balance the books, how the heck are we supposed to do it? Link to comment Share on other sites More sharing options...
El Cid Posted May 18, 2017 Share Posted May 18, 2017 Well the first issue of a lot of issues with this is that they wouldn't be small. If the only tax is on sales and imports it would have to be absolutely ginormous. Like 80% or something Income from trade tariffs in 2015 in the USA amounted to $34 billion, I wonder which tax they will increase if they cease with tariffs? http://www.cnbc.com/2016/12/07/trump-tariffs-countries-and-products-that-pay-the-highest-us-tariffs.html Link to comment Share on other sites More sharing options...
TheNugget Posted May 18, 2017 Share Posted May 18, 2017 But our balance of trade is very poor, I believe small trade tariffs would help that. What would you suggest we do? Nothing! I'm not sure what problem we're trying to fix! Taxing earnings seems pretty reasonable to me, I see no benefit with changing it. Sales taxes are generally regressive and hit poorer people harder. ---------- Post added 19-05-2017 at 00:12 ---------- We now have to pay much of our health care. We have to pay upwards of £30,000 to go to University. More and more services are now 'self-funding' (in other words we have to pay for them.) Care homes costing over £100,000 each. Etc. etc. Where are the corresponding tax cuts so we can pay for all this? House prices are huge, rents are huge, utilities are ridiculously expensive, travel costs to work are rising, food prices are going up, prices across the board are going up. Wages are down. Never mind the government being able to balance the books, how the heck are we supposed to do it? We pay very little of our healthcare other than from general taxation. University costs are paid in loans based on future earnings. Care is free if you can't afford to pay for it. We've been in a recession, times were difficult - but nowhere near as bad as the early 90s with 15% interest rates etc. There are many countries with much worse situations than ours. We have it easy in this country. Link to comment Share on other sites More sharing options...
Bonzo77 Posted May 19, 2017 Share Posted May 19, 2017 I qualify for labours 50p tax band and I'm more than happy to pay it! Link to comment Share on other sites More sharing options...
Supertramp Posted May 19, 2017 Share Posted May 19, 2017 We now have to pay much of our health care. We have to pay upwards of £30,000 to go to University. More and more services are now 'self-funding' (in other words we have to pay for them.) Care homes costing over £100,000 each. Etc. etc. Where are the corresponding tax cuts so we can pay for all this? House prices are huge, rents are huge, utilities are ridiculously expensive, travel costs to work are rising, food prices are going up, prices across the board are going up. Wages are down. Never mind the government being able to balance the books, how the heck are we supposed to do it? But your solution is more taxes? And not sure why you make it out to be so gloomy. ---------- Post added 19-05-2017 at 03:36 ---------- Income from trade tariffs in 2015 in the USA amounted to $34 billion, I wonder which tax they will increase if they cease with tariffs? http://www.cnbc.com/2016/12/07/trump-tariffs-countries-and-products-that-pay-the-highest-us-tariffs.html I'm not sure what you're trying to say. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now