Cutting taxes to fund public services

[noblegiraffe]

Listening to the radio this morning, we are facing massive tax cuts - stamp duty, corporation tax, national insurance.

The government spokesman said that this was to improve spending on public services which would benefit everyone.

I’m not an economist but reducing taxes would reduce the amount going to govt for public services (particularly the national insurance one which was earmarked for NHS/social care).

The argument is that this will cause lots of economic activity which will make people richer and therefore pay more tax. But they’d be paying tax at lesser rates.

So presumably in the immediate future we are looking at less money for public services until the economy is strong enough that more people paying more at a lesser rate generates more income than fewer paying at a higher rate.

Do we have a projected timescale? What will happen to public services in the meantime? Schools, for example, aren’t being given additional funding to pay for e.g. teacher pay rises and are being told to use their emergency reserves to pay for day-to-day costs (what happens if there’s an emergency and no reserves?), and the energy cost reduction is currently only set for 6 months. What then? In 6 months are we expected to be rolling in tax money?

Does anyone have any idea?

[newnamethanks]

More smoke and mirrors from this bunch of pirates. I know what we're being invited to roll in; it's not tax money.

[Topgub]

Absolute tory bullshit.

If anyone believes that's the reason they're an absolute mug.

Wasn't that long ago that tories were whining that we couldn't afford pay rises for those at the bottom because it would drive inflation.

But now we can afford tax cuts for those at the top.

Pfffffttt

[RandomMess]

It's a "trickle down"'policy and economists have seen it played out enough times now to know it doesn't work.

[noblegiraffe]

Also cutting the basic rate of income tax and scrapping the highest 45% tax band means that money from taxes is going to plummet at least in the short term, doesn’t it?

So how are we going to fund public services? Where is the extra money for the NHS/social care going to come from that was supposed to be from national insurance?

What’s the plan for funding public services while we wait for ‘growth’ to overcome the impact of tax cuts on public spending?

[PassMeThePineapple]

I don't know. Its so depressing. I don't think they want to fund public services. I'm relieved that my dc are coming to the end of their schooling because I can see the school under funding crisis getting worse and I can't afford private. I'm resigned to policing and nhs becoming worse and worse. Its well known that crime goes up the more inequality there is in a society. Look at the US and South Africa. Its not because the punishments aren't harsh enough.

[newnamethanks]

The 'plan' is to run down public services to the most basic level of provision, only for those who are destitute if they're not yet dead. Look around you. Every public provision is suffering. Its intentional, not accidental. Look at USA for illustration, the poverty is shocking. And the wealth immeasurable. That's where this country is headed.

[noblegiraffe]

They've already run down public services, I'm not sure how they can run them down much further. They talk about wanting growth but long term growth takes investment in things like a healthy and educated workforce.

I'm wondering how long it will take the people happy to have the 45% tax band removed to notice that they can't buy themselves out of a shit A&E service.

[newnamethanks]

I know. It's all bloody grim. I feel utterly despairing that our country has been stolen by these asset strippers, so depressing.