Which taxes should Burnham put up?

Taxes on dividends have been increased a few times over the past years. There's no long much difference in tax between where, say, a tradesmen is a sole trader compared to where they have a limited company and take the "optimum" mix of wages and dividends. At some profit levels, the wages/dividend route now produces a slightly higher tax liability, so the "stampede" for tradesmen etc to convert to limited companies as started by Gordon Brown is now over, with lots of people closing down their limited companies and reverting back to being sole traders.

Well, they could separate out dividends from passive investing and equalise that. Dividends paid in lieu of salary are a completely different thing, I agree and are, in effect, double taxation.

How will aggressively taxing the super rich work? I doubt any of them are doing anything illegal but so many have already left the UK because of the tax situation and this will have heavily reduced the amount of tax received by HMRC and has contributed to the dismal state of the economy.

We need to encourage these people to invest in the UK and therefore tax should be fair, at the moment so many other countries are a more favourable proposition.

Both parents incomes used in benefits calculations for children with an expectation that parents will endeavour to provide. No “I run my own company so only earn 1p a year” or “I only work 16 hours”. When you aren’t entitled to benefits you are expected to work overtime and second jobs to provide for your family. Dads who don’t earn enough should be allowed a managed payment system where the money is paid for the dc via taxation but collected with interest over a longer time period - through tax codes or like the student loan system.

Widening VAT to cover all shit food eg ready meals, cakes, upf sauces, all crisps. Removing children’s clothes exemptions except school uniform, which I admit is difficult to police but why should a Versace jacket be VAT free for a 14 yo? Tbf I think the vat rate is far too high and business would be relieved hugely by a reduction but lots of the exemptions are daft.

Increasing the threshold for depression and anxiety as a reason to claim benefits. Inpatient and acute care, psychosis etc fair enough. “I get anxious if I have to talk on the phone” - too bad.

The school transport system needs to be tackled. £2.3 billion per year. £12 million for every school day.

People need to accept that if they work reduced hours in a zero skill job then they will be on the bones of their arses. It’s not the taxpayers job to bring your standard of living up to that of someone working full time in skilled work.

More Road/vehicle tax - particularly for big/heavy cars. but better subsidised public transport.

IHT on all estates at 10% - you don’t need it and all this hoop jumping to avoid it is ridiculous. Exemption for surviving spouse but it is due of the 2nd partners death.

I work in the NHS, and yes, missed appointments are an issue. It would be very difficult to collect fines for missed appointments and even more difficult to prove they have been actually given the correct info. As soon as you move away from paper/post to digital systems you get “whatabouteried” back again.

The bigger issue is obesity, followed by unfitness, followed by rocketing levels of alcoholic liver disease. Charges should be introduced for people refusing to change their lifestyles in a timely manner. Money is a much bigger motivator than just being generally healthier.

Same, or holidays. Completely unfair when so many FT working families struggle. Gravy train needs to stop. Benefits only for those who meet means test way forward. It should be a safety net not a hammock.

This would never work and would be grossly unfair. If dividend tax rates were the same as personal tax rates Limited companies would close and everyone would become self employed. Before a director is able to take a dividend the company has already paid between 19-25% in corporation tax. I hate this whole tax everyone twice mentality.

If capital gains tax rates were increased you could wave goodbye to any form of investment in this country. Anything that could be subject to CGT and been paid for wil tax paid income.

We need to stop this race to the bottom mentality.

Exactly - there is no incentive to work or pay into the tax system which funds services and benefits that everyone wants. The pool of taxpayers is becoming smaller as demands on the system increase.

I agree with loads of ideas on here and the CMS payments particularly resonates.

I was horrified that I needed tax payer support when my adulterous husband left. We earned the same as we had always earned, he should have had to pay to look after his children!

Benefits need to be tightened, it should be there for short term uneventuality, not forever. Working people cannot afford to keep everyone who chooses not to work. I have a very capable family member who claims. , enough to live on, support with rent No reason at all, just a lifestyle. Frustrating.

My additional thought to others is taxes/duties on imports from companies such as Amazon, TEMU, Shein. This would raise money but additionally would make them less cost effective, giving the added bonus of reviving our own high streets, providing jobs and giving back a sense of community through regular contact with others. Europe has thriving high streets. So many benefits.

I agree with all of that apart from the bit about it not happening because too many NHS staff are too entrenched. I've worked in the NHS for 30 plus years and many of of us are well aware of its failings and of the other healthcare models that could be implemented - but no Govt wants to be the one to act on it. Don't blame us NHS workers please.

EDIT - actually, a lot of poor health is down to personal behaviour, but that's an unpalatable truth for many - with the expectation that the NHS will sort it all with taxation that comes from a shrinking pot because no-one wants tax increases, the benefit system is out of control, and everyone loves a cash in hand job.

Nail on the head again. Our entire tax/benefit system is not dysfunctional and means fewer people are working and fewer workers are full time. We need a huge initiative/policies etc to get people working and get them working more. We need to disincentivise part time working, early retirement, etc.

Nail on the head with all that. The NHS is no longer run for the benefit of the patients and is no longer fit for purpose.

I go to a night class with someone who does exactly this. Her entire family are on benefits for various ADHD, autism (but at the mild end), OCD, anxiety and so on - and we all know this because she tells us. She's a young woman in her early 20s who's been to university and completed her Masters but can't work for some reason - and yet is able to go to various night classes (which she gets taxis to using her PIP - and presumably that pays for the classes too), on holiday, does her various hobbies through the day and so on.

I would also make the categories for what you can spend PIP on more limited - and proof that it's being spent on that.

I don’t agree. I worked for a Conservative Council when the Conservative government was in power.

We saved £5million per year, year on year but services suffer. Staff taking on the role of three staff members, service inevitably suffering, large amounts of money having to be spent privately on adult social care and vulnerable/SEND children as there was no money to create our own provision (and catch22 when £100,000+ per child per year had to go to private venture and its shareholders).
Transport cut, families having to transport children miles, affecting jobs and rural communities.

We currently have few environmental services (less bin emptying, less grass cutting, lights out, roads a state, pavements broken, parks and local paddling pools unusable due to lack of maintenance and full of weeds). The library opens limited hours, desperate for volunteers.

What would you cut? Useful information for leaders of councils.

I don’t think anime in gov is aware of this rn. Hence the every meeting line.

Taxation whether it be income tax, VAT, alcohol, tobacco, sugar tax or even speeding fines (which are a form of taxation) discourages behaviour.

Subsidies or benefits whether that be heat pumps, incapacity benefits, motability etc encourages behaviour.

If you increase taxation in order to increase benefits then don't be surprised when more people decide not to work.

PIP should only be for people with physical disabilities who need money to pay for additional assistance or requirements. Not for ADHD. I remember a post on Mumsnet where someone said they would sometimes forget to cook for themselves so the money enabled them to get takeaways. We can’t afford this. I know of someone who gets PIP and uses it to pay for taxis as they don’t like travelling on public transport. They have no disability that stops them doing so, they just say ‘it makes them anxious’. In many cases I don’t see how throwing money at the problem resolves the issue. It should be based on specific need.

@Disturbia81

Yes I work with so many people on pip who already have money, they blow it on ebay, gambling etc

Equity only becomes money if the equity is released. Most people will have had to work to buy their own home.

Are you suggesting that people should be forced to release equity?

Also day 1 sickness benefits for employees needs to go as this is utterly unfair for businesses. And minimum wage for those under the age of 21 should be dropped, to encourage training young people.

There is so much cost that could be cut by bringing immigration under control as well.

There is very little scope to raise tax. Labour have got to stop spending our money. Welfare should be means tested. The triple lock should go. If you are on a good salary you should not be receiving any form of PIP or other benefit. The two child cap should be reinstated. VAT on private school education should go. Tax incentives should be given to those who send their children to private school, to incentivise taking the cost of education away from the state. Drilling in the north sea should be allowed.

Yes I work with so many people on pip who already have money, they blow it on ebay, gambling etc

Ideally the NHS would be de-sanctified and completely re- structured rather than fannying about with AI diagnoses)
Processes in departments and (really importantly) between departments need forensically examining and made to actually work.
Staff who are off sick more than they are at work need sacking.
British trained Clinical staff should be prioritised for jobs, use of expensive agency staff massively cut.
We need a Co- pay/ insurance system on the lines of EU countries (not America) and the ability to directly contact specialists instead of using GPs as gatekeepers. This would help prevent expensive emergency treatments caused by patients waiting literally years for referrals.
But it won’t happen, because waaay too many NHS staff are entrenched in the status quo.
I strongly object to paying more tax to feed into the endless black hole that is the current NHS, which is shockingly unfit for purpose.
And stop blaming patients for their own poor health. Often it’s utter medical neglect for years that causes this!

I think a land tax would only work if farmers producing food for UK consumption were exempt.

Agree. I used to work in this area and feel it is crazy the low threshold for qualifying for it and very little checks done . And that is before the AA then qualifies people to claim loads in pension credit on top, which then qualifies them for all rent and council tax paid. The claimants themselves were embarrassed at the amounts they were receiving. They should only pay it when care is being paid for in my opinion. Goodness knows how we have got to this situation without it being reigned in. It has all become so hideously out of control.