If more people worked, would income taxes go down?

int

int

int

Soldato
Joined
14 Apr 2008
Posts
2,654
Location
Exeter
This is probably a silly question but I'll ask any way.

If more people were working, i.e. less people on benefits, would/should we see our income tax go down?

  • Less people on benefits would mean less people to support with taxes.
  • More people working would mean more taxes going back into the system.

Or would this just be classed under "wishful thinking"?
 
one would hope that the services we received would get better. however it does feel a bit like a bottomless pit that our taxes go into so I expect it would make little difference
 
int said:
This is probably a silly question but I'll ask any way.

If more people were working, i.e. less people on benefits, would/should we see our income tax go down?

  • Less people on benefits would mean less people to support with taxes.
  • More people working would mean more taxes going back into the system.

Or would this just be classed under "wishful thinking"?
Click to expand...

The answer is, "No". Indeed that's at least in some part how we got in this mess. More people were working - but for the government.
 
I can only seem to find part-time jobs these days, and I think this will be a sign of times to come. It could even solve the problem with unemployment. Say everyone worked a 25-hour week. It would leave gaps in the Mon-Fri working week. One group of people then works the first half of the week while the other group works the latter half, perhaps with some le-way/overlap in the middle. I know it sucks because we'll all earn less but it's the only way I can see.
 
semi-pro waster said:
Do you have a source for that? My understanding is that VAT is charged at standard rate on processed fruit such as fruit drinks but not on raw fruit which is zero rated (Source).
Click to expand...

Crushed fruit is still fruit, charging 20% tax on very healthy smoothies is mental while burgers and chips are tax free. I am entitled to £50 tax evasion every year from smoothies alone!
 
j.col said:
lol

in theory, i think you are right,
but NO government will ever reduce taxes, they will just dream up new ways to spend it
Click to expand...

How old are you?
I remember the last tory goverment reducing my tax bill every year for about 3-4 years running.
Oh and btw they were also repaying off some of the national debt at the same time that relayed borrowing money to build wooden warships!

Recent times the ratio has got further and further out of wack (normal Labour strategy) and the tories are trying to reverse that situation quickly hence unusual tory strategy of rising tax.
Normal tory strategy is to cut spending on stuff like benefits etc and reduce taxation. Remember die hard tory voters will always want lower taxation and lower services, they can afford to choose their own services.
The middle ground "swing" voters will typically go for lower taxes after being taxed highly (labour strategy) and then want better services after a tory reign in power (paid less tax but services suffered)
 
Gzero said:
Helps if a certain class of people didn't get away with tax evasion too that you seem to have missed off your list. ;)
Click to expand...

Your dead right, tax evasion, avoidance or other financial jiggery pokery that helps big corporations keep their tax bill down is estimated to be in the region of £16 billion. Problem is, put pressure on this big guys to play the game and they sod off to another country and take the jobs with them.

Having said that, according to an official Treasury forecast, benefits will cost £170.9 billion in 2010/11. That is equal to what the Government will spend on the NHS, schools and universities combined. Income tax revenue from workers will only be around £150 billion - scary :eek:

So, I to answer the original question, if no benefits needed to be paid out, you'd kinda hope it would make a diference to the workers, it's a big old chunk of cash..
 
You must log in or register to reply here.
Back
Top Bottom