For me this highlights the difficulty of labour backbenchers not being able to see the tough choices regarding welfare reform. The grownups in the room are Reeves and Starmer who are doing their best.
Any idea around lifting the 2 child benefit cap would be insanity at this point, the black hole is growing rather than shrinking at the moment.
Eventually they will have to stare down the back benches.
It would be so much easier for everyone if they just said...."sorry, we really do need to fill this black hole & the simplest & fairest way to do it will be to raise Income tax by 1% on basic rate taxpayers & 2% on high rate tax payers"
Eliviate some of the pain by raising the personal allowance to £13k (or even £13.5k) and increase VAT to 22.5%. Then start reducing theses axes over the last couple of years of Parliament.
It would be so much easier for everyone if they just said...."sorry, we really do need to fill this black hole & the simplest & fairest way to do it will be to raise Income tax by 1% on basic rate taxpayers & 2% on high rate tax payers"
Eliviate some of the pain by raising the personal allowance to £13k (or even £13.5k) and increase VAT to 22.5%. Then start reducing theses axes over the last couple of years of Parliament.
Couldn't agree more with this.
I would also level CGT with income tax. CGT being lower than income tax is a key propagator of inequality.
It would be so much easier for everyone if they just said...."sorry, we really do need to fill this black hole & the simplest & fairest way to do it will be to raise Income tax by 1% on basic rate taxpayers & 2% on high rate tax payers"
Eliviate some of the pain by raising the personal allowance to £13k (or even £13.5k) and increase VAT to 22.5%. Then start reducing theses axes over the last couple of years of Parliament.
Couldn't agree more with this.
I would also level CGT with income tax. CGT being lower than income tax is a key propagator of inequality.
Yes, I agree with that too and think it's very likely that will happen in the Budget.
It would be so much easier for everyone if they just said...."sorry, we really do need to fill this black hole & the simplest & fairest way to do it will be to raise Income tax by 1% on basic rate taxpayers & 2% on high rate tax payers"
Eliviate some of the pain by raising the personal allowance to £13k (or even £13.5k) and increase VAT to 22.5%. Then start reducing theses axes over the last couple of years of Parliament.
They backed themselves into a corner on tax though to get elected. Any raising of tax now on 'working people' will likely be a nail in the coffin for Labour. It's really difficult to see what will happen, but I can't help think the'll go after minorities, so things like CGT, IHT, maybe pension relief or even the tax free amount etc. Could even be a secondary tier of VAT on true high end luxury items (cars over a value, gold, jewellery etc).
If it were me I'd be going after the huge internet corporations who swerve taxes through sleight of hand, funnelling profits into Ireland and Luxemburg etc. Whack the 2% digital services tax up to 8 or 10% and let them leave if they don't like it. They wont go anywhere.
The 2% brings in an average of 800m a year and will only increase. Multiply that by 4 and there's 3.2bn right there. Boo hoo Bezos and Zuckerburg, but f**k them.
If it were me I'd be going after the huge internet corporations who swerve taxes through sleight of hand, funnelling profits into Ireland and Luxemburg etc. Whack the 2% digital services tax up to 8 or 10% and let them leave if they don't like it. They wont go anywhere.
The 2% brings in an average of 800m a year and will only increase. Multiply that by 4 and there's 3.2bn right there. Boo hoo Bezos and Zuckerburg, but f**k them.
What do you envisage the American reaction would be?
Trumps cronies won't like it so trump won't like it but why should the orange turd dictate our domestic tax policy? He can steal from the poor to give to the rich in his own screwed up country but why should we stand for it? (You're quite right, and I know the answer to my rhetorical question is 'because he can'). It's my impression that starmer had his pants pulled down on this one
For me this highlights the difficulty of labour backbenchers not being able to see the tough choices regarding welfare reform. The grownups in the room are Reeves and Starmer who are doing their best.
Any idea around lifting the 2 child benefit cap would be insanity at this point, the black hole is growing rather than shrinking at the moment.
Eventually they will have to stare down the back benches.
100% agree Jt won't happen though because Starmer hasn't got the bollox
Comments
Any idea around lifting the 2 child benefit cap would be insanity at this point, the black hole is growing rather than shrinking at the moment.
Eventually they will have to stare down the back benches.
Eliviate some of the pain by raising the personal allowance to £13k (or even £13.5k) and increase VAT to 22.5%. Then start reducing theses axes over the last couple of years of Parliament.
I would also level CGT with income tax. CGT being lower than income tax is a key propagator of inequality.
He can steal from the poor to give to the rich in his own screwed up country but why should we stand for it?
(You're quite right, and I know the answer to my rhetorical question is 'because he can'). It's my impression that starmer had his pants pulled down on this one
Jt won't happen though because Starmer hasn't got the bollox