Current Affairs The Conservative Party

[Rita_Poon]

There should have been a VAT reduction to help people who are struggling. Yes I know there can be issues with getting the saving down to the final consumer, but everyone pays VAT and not everyone pays income tax or NIC, or business taxes or stamp etc. It's the easiest tax to reduce if you want to help pretty much everyone

The cut in the basic rate is good for lower earners, as is the reduction in NIC as well though. Although I have no idea why a cut on stamp duty was on the agenda here. That's hardly a pressing issue at the minute and it looks a bit ridiculous to me that they are talking it up.

As someone who works in tax, I'm glad the 6% rise in CT never happened because I've told everyone in the office for 2 years it would never happen. My remaining credibility is saved lol

Property wealthy individuals can cash in and sell now that its no fun to live and work here. A reduced rate on your block of flats sale for instance pays off better, sell it to a housing association or a property developer, suddenly you create a chain where gentrification is more manageable, you keep the wealthy wealthy, you want them spending and partying here. Development means improvement* and jobs and supply chain and then demand on the end.
HS2 means the outer edge of london is expanded, thats the big plan, bigger area for the capital same journey times, so more people, more nice areas, fresh areas to ghettoise, more places fall under higher rates, more development, more demand.

Its all a con, its all conservative.

 

[neil999]

It's pretty much an economic experiment. They reckon that the 45% rate is acting as a deterrent to further work and entrpreneurship, and that a lower rate will boost productivity to the point where you actually bring in more at the lower rate. At least that's what the argument in the A level textbook said...

But the issue is that some of the biggest earners in the country are footballers and not entrepreneurs and that's where the argument falls down a bit! Good time to be on a 5 year deal at 120 grand a week!

It's an absolute nonsense , people aren't going to stop trying to earn more at 150k or whatever because they will get taxed a bit more

 

[Rita_Poon]

If anyone who vaguely earns a normal Amount of money votes tory again they should not be allowed out of bed for 10 years

They are comatose anyhow, and winter will see bed as the only sanctuary.

 

[ToffeeTim]

It's an absolute nonsense , people aren't going to stop trying to earn more at 150k or whatever because they will get taxed a bit more

I don't think it's total nonsense tbh. Once you start earning over £150k you effectively get taxed at 47% (+ 2% NIC) and maybe student loan repayments on top meaning you only keep maybe about 40p in the pound. People will start to value their free time and family/leisure activities more than economic productivity at that point, especially if you have a comfortable lifestyle.

 

[tsubaki]

I'll laugh if Sunak gets his followers to vote this down, and then again if the pound / FTSE bounces back after they do that.

 

[dublinbluenose]

I don't think it's total nonsense tbh. Once you start earning over £150k you effectively get taxed at 47% (+ 2% NIC) and maybe student loan repayments on top meaning you only keep maybe about 40p in the pound. People will start to value their free time and family/leisure activities more than economic productivity at that point, especially if you have a comfortable lifestyle.

A lot of wishful thinking there TT I think. It's hard to see this as anything other than a massive punt and at not great odds either. We'll see in a few months.

 

[ToffeeTim]

A lot of wishful thinking there TT I think. It's hard to see this as anything other than a massive punt and at not great odds either. We'll see in a few months.

It's absolutely a punt and the timing of it is not ideal at all, but proof will be in the pudding

 

[Rita_Poon]

It's absolutely a punt and the timing of it is not ideal at all, but proof will be in the pudding

Is it a long shot at Russia backing off and Europe normalizing? Markets slacken the recent duress and confidence for consumers returns?

 

[neil999]

It's absolutely a punt and the timing of it is not ideal at all, but proof will be in the pudding

The timing is unbelievable, its interesting how they are putting very little spin on it, this along with bankers bonus going will be political suicide

 

[COYBL25]

It's an absolute nonsense , people aren't going to stop trying to earn more at 150k or whatever because they will get taxed a bit more

I can only speak about the people I know, who earn this sort of money mate.

They are acutely aware of the point where they get battered for tax and once they hit the threshold, they all bank the hours, that would`ve tipped them over the threshold and use them as holidays / days off.

Their rational is, that once you hit that tax threshold, it becomes pointless to keep putting the hours in, as you`re effectively working just to pay tax.

 

[tsubaki]

Is it a long shot at Russia backing off and Europe normalizing? Markets slacken the recent duress and confidence for consumers returns?

that is the only way this will ever work

 

[Walken]

I can only speak about the people I know, who earn this sort of money mate.

They are acutely aware of the point where they get battered for tax and once they hit the threshold, they all bank the hours, that would`ve tipped them over the threshold and use them as holidays / days off.

Their rational is, that once you hit that tax threshold, it becomes pointless to keep putting the hours in, as you`re effectively working just to pay tax.

This is only true for those in and around the threshold, which is not the only purpose of that tax

 

[edge]

This is like going to be a disaster.
Well if your rich maybe not?

 

[neil999]

I can only speak about the people I know, who earn this sort of money mate.

They are acutely aware of the point where they get battered for tax and once they hit the threshold, they all bank the hours, that would`ve tipped them over the threshold and use them as holidays / days off.

Their rational is, that once you hit that tax threshold, it becomes pointless to keep putting the hours in, as you`re effectively working just to pay tax.

That lines always gonna exist somewhere tho isn't it? And this won't apply to everyone

 

[COYBL25]

That lines always gonna exist somewhere tho isn't it? And this won't apply to everyone

I agree, as a few of the lads who I know, who have their own businesses, don`t declare their cash earnings, for this very reason too.