40% from 50%
Moderators: kiore, Blip, The_Metatron
Feel free to trickle down somewhere elseStrontium Dog wrote:The only thing that seems to be trickling down on this forum is stupidity.
Actually, the really poor will not be paying less... poorer paying less. This is an indisputable fact. Anyone stating otherwise is not dealing in facts and has a political axe to grind.
mrjonno wrote:Reckon the Tories arent actually going to do this but leaking they will do this and then not doing means they listen to the people?
Panderos wrote:@[color=#CC0000][b]Paul[/b][/color] G
Well, it's always a bit more complicated who 'pays' tax. But yes, in a simple way, it doesn't affect businesses, nor entrepreneurs - who pay tax on dividends at 42.5%, if over £150,000, or 28% capital gains tax when they sell shares. This is really aimed at senior executives, bankers and a few other high earners as far as I can see. I'm sure I've heard even footballers tend to set up their own companies to avoid income tax.
DaveScriv wrote:BTW, I agree with Bill about a cut in VAT as also being something which would benefit everyone. Just saying, the inheritance threshold is too low as well.
Panderos wrote:What are the nature of the avoidance schemes used to get round the 50p tax rate?
Can they continue to be used when the rate is dropped down to 40p?
So much hot air around this issue and so few numbers.
chairman bill wrote:Indeed. And raising the tax threshold benefits everyone earning enough to pay tax. Those on really low wages don't earn that much, so tax breaks couhnt for sod all. A cut in VAT would help them more than a cut in income tax - they spend all they've got - yet some Tories are proposing an end to VAT exemptions on food FFS.
chairman bill wrote:Actually, the really poor will not be paying less
ED209 wrote:I can only assume the discussion around the 50% rate is intended to be a diversion from the torydems raise of the regressive VAT
Evolving wrote:Blip, intrepid pilot of light aircraft and wrangler with alligators.
Blip wrote:I confess that I know little of economics so would be (sincerely) interested to learn how an increase in VAT is progressive taxation.
Blip wrote:I confess that I know little of economics so would be (sincerely) interested to learn how an increase in VAT is progressive taxation.
There are two ways of looking at VAT, according to The Institute for Fiscal Studies (IFS): as a proportion of income, or expenditure. The IFS favours the latter, as it’s a better indication of long term household spending.
Over a lifetime, VAT will tend to be progressive because things that aren’t subject to the main rate of VAT are necessities that are consumed disproportionately by poorer households. And so increasing VAT on everything else will tend to hit the poor proportionately less, the IFS told FactCheck.
VAT is “slightly progressive”, the Institute’s senior research economist Stuart Adams said, “Particularly when you look at it over a lifetime.
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