National insurance cut

[tangey]

Clearly there is a political element in this, but that can't really be surprising

As the prior poster said, interest rates are not under direct gov control, and a decision by the BOE that helps get more money in peoples pockets is a) outside of gov timing, b) would not be as directly tied to an action of the conservative gov as this clearly is c) easier to specify "we are giving X people Y per year extra" d) helps a different subset of the population than an NI reduction helps.

 

[tonys]

I know, i didn't say the Gov should tell them too, but if OBR projections are right and justify Hunt's NI cut, then it would naturally come down and be better for the public. But that's not something the gov can take credit for in an election year.

Sorry I just read it that way, yes they should be bringing it down no denying but if they do bring it down a bit I can see Hunt claiming it was just because of his budget

 

[adidan]

OBR lay out the actual situation.

 

[One More Solo]

It maybe going that way but you have to have some ideas on getting the economy going. That was just one idea that may or may not be a workable solution, who's to know?

Anyone with a working knowledge of how tax works and its impact on the economy.

 

[tonys]

Anyone with a working knowledge of how tax works and its impact on the economy.

You pay it they spend it.

 

[Semple]

I don't really understand the point in this cut. I mean interest rates are high due to inflation because there is/was deemed too much money circulating so to take money out they are supposed to encourage saving, but really just kill people with mortgage rates being high.
Wont this cut negate some of the effects of the interest rates being high as more money will be in the economy again? So the BoE will increase rates again to negate this and the banks will be loving it?

Or am i missing something?

When you consider most people are actually still going to be worse off net (take into account council tax rises, water rate rises, broadband rises) there won't actually be any extra money in the economy.

 

[tonys]

When you consider most people are actually still going to be worse off net (take into account council tax rises, water rate rises, broadband rises) there won't actually be any extra money in the economy.

Exactly correct, how long did he talk for 2hrs? And gave us absolutely nothing, typical .

 

[Mickie]

I'd rather get the deficit down. What a mess we're leaving for future generations.

That's what they've said for 15 years.

 

[tonys]

That's what they've said for 15 years.

I've been thinking that for 50yrs
I'd rather get the deficit down. What a mess we're leaving for future generations.

 

[SPG]

The direction of travel is for a global tax system so it is only a matter of time before tax havens become a thing of the past.

Nah, the rich will still want to be just that rich.....

 

[tonys]

Nah, the rich will still want to be just that rich.....

Of course, they will just find another way toget and hold onto it

 

[413x]

The inheritance tax allowance is £325,000 plus potentially a further inheritance tax property allowance of £175,000 which applies when you leave your house to your children/grandchildren. Allowances pass between spouses, so you can end up with a £1 Million inheritance tax free for the children if both parents have died with appropriate wills in place.

Ah yeah.
So you don't get the 1mln if selling off the house?

So yes. My family would get some IHT applied.

 

[Stu999]

I'd rather get the deficit down. What a mess we're leaving for future generations.

What about the debt?

 

[tonys]

What about the debt?

Get rid of the deficit you have more money to pay of the debt

 

[SpellowHouse]

I'd rather get the deficit down. What a mess we're leaving for future generations.

It amazes me that this country is in such a dreadful state and yet no one seems to know or care.

Once upon a time the Conservatives used to be the party that had good economic sense. No more. The country in a far worse state than it was in 13 years ago. I am sorry I ever voted for them.

 

[Freakbro]

What about the debt?

You just have to wait and inflate it away basically whilst paying the interest.

 

[Bluecube]

What, I think, many people don't realise is that most politicians are companies. So they pay company tax not normal income tax. Which kinda explains why reductions in company tax as so popular with the conservatives. As companies, they pay reduced tax, but they do also pay NI. So this is yet another money increase for the politicians.

What you don’t realise is that’s a complete load of crap. That’s a complete failure of understanding on how tax is paid and what it applies against.
For the sake of this nonsense argument, you still pay tax on dividends (as you imply politicians are employees of companies) and no NI is paid against dividend income

 

[Mr Jack]

I'd rather get the deficit down. What a mess we're leaving for future generations.

You want to leave a good situation for future generations then worry about growth, infrastructure, and services. So long as growth and inflation are higher than the deficit, the real impact of the deficit will keep falling. Paying off debt is dumb; strangling growth in order to pay off debt is doubly dumb because it doesn't even work in its stated aim - you only have to look at the social and economic disaster that was the Cameron era to see that.

 

[SPG]

Inheritance tax is just another tax on the less well off. Its designed to keep people in their place, cant have to many up and commers entering the sphere of the North Norfolk Holiday yaaaaah team.

 

[SpellowHouse]

What you don’t realise is that’s a complete load of crap. That’s a complete failure of understanding on how tax is paid and what it applies against.
For the sake of this nonsense argument, you still pay tax on dividends (as you imply politicians are employees of companies) and no NI is paid against dividend income

Its one thing to get emotional and rude, its another thing to get that way when you are wrong. I completely understand the taxation of a company, I owned one for many years.

A reduction in the personal allowance would not have affected most politicians because they pay the company rate, whereas a reduction in NI will . In other words, what the conservatives have done here is given a tax reduction, but in a way that will increase the take-home of themselves. Had they just changes the personal rate, that would not have happened.