UK Emergency Budget

[Kuciwalker]

Perhaps I think more good can be done by helping people who are actually starving than by helping people who already have food, shelter, and free medical care. But the starving people have brown skin and live far away, so they don't particularly matter to you.

[Krill]

But in many cases it won't get spent. It goes into further investments, inheritance for the kids who live off dividends, investing/purchasing property in more favourable tax climates, etc.

I'm not inherently opposed to VAT, I'm just making the case for why it's widely considered a regressive tax. And I think 20% is a bit steep is all. I'm used to 5-7% in GST only.

If you have an income of over £50K, you pay 28% CGT...so that's actually worse.

[Krill]

It is different, of course. One question to ask is what the income tax looks like in Britain.

1) the corp. income tax is substantially lower in the UK than the US, but is higher than in Canada
2) IIRC UK income taxes are only collected at a national level, not by region/province/state/whatever
3) capital gains taxes are, I believe, lower in the UK than the US (?)

1) Corp tax is 28%, and will be lowered 1% every year for the next4 years to 24%
2) True, but I can't remember the tax rate. Ah, here it is:

Income tax: taxable bands and rates 2010/2011
Taxable income rate of tax
0 - £2,440 10 per cent (starting rate for savings only)
0 - £37,400 20 per cent (basic rate)
£37,401 - £150,000 40 per cent (higher rate)
Over £150,000 50 per cent (additional rate)


3) 28% if you earn over £50k a year, 18% otherwise

Unfortunately, this means that I'm poor, but not screwed over that much by the tax rises (single, don;t buy much of anything that has VAT) or benefit cuts (I don;t get any).

[Frozzy]

The UK tax system is more like a colander than some rigid anvil of doom. VAT isn't a flat tax on all goods, because so much superfluous nonsense is exempted from it. Books, newspapers, maps, aircraft, helicopters, shipbuilding, houseboat moorings, pools betting, lotteries are all exempted. Then you have a capital gains tax equal for business and non-business assets, daft income taxes that just encourage the wealthy to bugger off to tax havens and so raise no money... it's just dreadful.

IIRC the child benefit isn't means tested, which is stupid, the winter-fuel payments aren't means tested... it's just a farcical system.

And instead of changing the colander for a proper system people just want to ramp up taxes and slash spending Goodness knows what it's going to be like when western countries start having to shell out for an unfunded pension scheme in a few years time.

[Krill]

The UK tax system is more like a colander than some rigid anvil of doom. VAT isn't a flat tax on all goods, because so much superfluous nonsense is exempted from it. Books, newspapers, maps, aircraft, helicopters, shipbuilding, houseboat moorings, pools betting, lotteries are all exempted. Then you have a capital gains tax equal for business and non-business assets, daft income taxes that just encourage the wealthy to bugger off to tax havens and so raise no money... it's just dreadful.

IIRC the child benefit isn't means tested, which is stupid, the winter-fuel payments aren't means tested... it's just a farcical system.

And instead of changing the colander for a proper system people just want to ramp up taxes and slash spending Goodness knows what it's going to be like when western countries start having to shell out for an unfunded pension scheme in a few years time.

I expect riots on the pensions tbh, considering just how much they have ****ed over the current young adult population. So far I've gotten nothing from this country...like hell am I paying someone elses' pension above a minimal level.

[dannubis]

While I do agree with you on the pensions thing, it is a travesty to say you have gotten nothing from your country. You can read and write, can't you ?

[Krill]

While I do agree with you on the pensions thing, it is a travesty to say you have gotten nothing from your country. You can read and write, can't you ?

Considering that the current pensioners had comprehensive schools as well, education is not a good topic to argue over, especially because the budget just got cut by 25% and most university students are now required to take out loans to pay for it...I both worked during holidays and still have loans to fund myself.

And I'm privately educated mostly, but for the few years I spent in the local primary school as a child, I didn't learn much that I didn't learn by reading encyclopaedias (yeah, I was really ****ed up as a child...)

The only good thing is the NHS, and even then, the amount of expensive drugs that are forced to be prescribed by the courts due to "discrimination" even though NICE has said it is not cost effective to use them...although that is a different argument that is aimed more at the way R&D works at GSK et al.

[dannubis]

I said I agreed on the pensioners. However, your country made it possible for you to have an education other than learning how to hold a plow. So society gave you an expensive education.

However, I didn't think of student loans... that sucks.

[Krill]

I said I agreed on the pensioners. However, your country made it possible for you to have an education other than learning how to hold a plow. So society gave you an expensive education.

However, I didn't think of student loans... that sucks.

One of my friends whom I went to school with is a farmer now...lives about 10 mile away.

[Hauldren Collider]

Perhaps I think more good can be done by helping people who are actually starving than by helping people who already have food, shelter, and free medical care. But the starving people have brown skin and live far away, so they don't particularly matter to you.

And the best way to help them is to buy their cheap **** at the store!

(it's true!)

[Caligastia]

Ending protectionist economic policies would help too.

[KrazyHorse]

And the best way to help them is to buy their cheap **** at the store!

(it's true!)

That's one way. Another way is to give them money, either randomly or uniformly

[ricketyclik]

But the investment increases in value (typically). They're earning extra money by deferring the consumption, capitalizing on it if you will...

This. A flat VAT enables the wealthy to defer taxation and invest for extra income later, an opportunity denied the poor.

I'm not against investing for extra income later, just not when an unfair tax system is being used to do so.

Either make the VAT (or GST or whatever) progressive, or stick to taxing income, including capital gains income, at a progressive rate.

[KrazyHorse]

You're an idiot.

[ricketyclik]

You're an idiot.

Purple-faced pimple picker.