how will the government raise the money?

[thereiscustardinthejamtart]

I’m curious as to how the government are going to raise the money for the “£22b black hole”.

Presumably they can either cut spending or raise more money (either through taxation or growth).

They have said they aren’t going to raise income tax, VAT or NI.

They don’t seem to be going for a growth plan.

So what are we expecting to be cut, and what are we expecting to be taxed.

I assume they are looking at pensions (get rid of tax free lump sum, reduce or eliminate relief on contributions), inheritance tax, some kind of additional tax on corporations. They are already doing VAT on private education.

Cuts - winter fuel allowance. I assume reduction in university funding, arts funding. What else?

So you want them to pay tax again on money that has already been taxed via the income tax route?

At what point will the wealthy decide to spend whatever they have so they no longer have to subsidise the less well off though?

What incentive do they have to make money if the Gov are just going to keep taking it from them
Who will replace the company owners and employ people?

Do you think its as easy as everyone will work in the public service instead?

@candlewhickgreen 2m people who earn 1m plus a year? Or does that include assets. And you think the ones who earn 1m plus will all just stay?

Yes, that's right, I don't understand why someone who as earned and saved should pay more tax - on that bank balance.

I do understand that people pay tax on income and the more you earn, the more you pay. x amount per £ and that amount increases over certain thresholds. Fine.

But what I am saying is do you actually think it OK to deplete someone's bank balance just because they saved/earned it? As if you think it's OK, why don't we just take 10% of every single person's bank balance in this whole country as a one off? Instant fix. But no, everyone thinks someone richer than them should pay.

There are not 2 million people earning 1m plus a year.

Well, I think that they should do something radical and cut benefits for all healthy 16-18 year olds. Between 18-22 I would expect all healthy people out of work on benefits to sign up to 20 hours voluntary work in the public sector to help fill the gaps by cuts (i.e. meals on wheels, community care, waste management, parks and gardens, graffiti removal etc). I would give them the choice from a list and they would have to stick it out for 6 months before they could apply for something else. No one young and fit should be getting money for do nothing. They need to be contributing to society and pitching in to help at a time when the country faces massive cuts. So that would be my starting point.
I don't think that it's fair to keep raiding the pension pots, inheritance tax etc of those sensible working amd middle classes who have saved and planned for their futures.

If you look at other European countries taxes on the higher earners is pretty much in line. Where we differ is the middle earners are taxed less here.

Obviously this relates to PAYE which those earning millions won’t tend to be on.

I'm suggesting that we raise the taxes for millionaires/billionaires. Tax people with a lot of money more than people with less. We should also tax big corporations that pay no tax.

@Scentedjasmin how many healthy 16-18 yr olds are on benefits?

That would really screw pensioners on basic state pension. Actually every body on low wages would be screwed. But not going to happen.

No. It is actually about 10,000 according to the ONS.

Maths, or interpreting charts, or financial concepts is not the poster's strong point.

I don't think that it's fair to keep raiding the pension pots, inheritance tax etc of those sensible working amd middle classes who have saved and planned for their futures.

Always the same old narrative. My older colleagues aren’t more prudent than me. The pension scheme changed whilst I was at uni to be less generous & as great as it would have been to buy a house in the 90s with far more relaxed lending criteria & MIRAS alas I was a child.

But this thread isn't titled 'what options could be open to people who choose them which would save the country a lot of money'.

I'm very much presuming that none of the suggestions as to how the government might raise a lot of money are expected to be entirely optional. I can't imagine them raising much at all if they go around shaking a bucket and asking if anybody maybe fancies offering to pay more tax.

@Thurien that makes more sense as I think I read about 160k earn 100k.

They will tax / fine the people who don’t agree with them, followed by confiscating their property and assets; the Chinese call it social credit. It’s not that hard as long as people use the internet, speak to each other in public ( or even in private after a few years).

What do you mean, that seems a bit unfair? What are you, some racist, homophobic, transphobic bigot ? Your food stamps are withdrawn for a week.

How did we fund the extra spending during the covid crisis? By using the Bank of England to finance it and draw directly from the ways and means facility.

The poster didn't make that clear though, did they? As you say, there are millions of people not working.

Great. Let's put them all to work. Doing what? There's nearly a million and a half people who are actually 'unemployed' and can't find jobs. If they can't, how are all the other millions of people not working going to find a job? What do you want to do - round up all the pensioners and set them to work in factories or brussel-picking in the fields?

Would be very supportive of sugar taxes.

I honestly don’t think they know yet. Labour tend to spend money, then work out afterwards how they’re going to recoup it. Maybe Reeves is reading this post on MN and getting ideas.

Also suspect legalising, regulating and taxing certain drugs would raise a lot more than 22bn.

Marijuana is effectively legal already. The way in which friends and acquaintances of mine buy pills and coke make me think it's effectively legal - they show up disguised as deliveroo riders anywhere in London within 30 minutes!

I hate drugs but may as well as tax them!

Yes, or a dog tax!

We need to buy an annual dog licence in NI. Not sure how much money it generates though 🐶

I seem to remember Cyprus doing this a few years ago.

For the final time because this is getting boring. We should raise taxes on millionaires. People who earn millions and people with millions in the bank. There should be higher tax on very wealthy people. People with more money should be taxed more than people with less money.

According to Forbes there are over 2 million people in the UK who are millionaires. I think those people should be taxed more.

😂 😂 😂

You have just proven my point that you don't understand the difference between funding and finance.

This is basic stuff.

Exactly this. They will widen the bands so the 'middle' are paying more and the rich are paying more. Anyone on the 40% and 45% tax brackets will find themselves paying increased taxes which will hurt those far more.

What would make sense would be to make the NHS free for those on the 20% bracket only. There is no need for it to be available for everyone. It simply isn't feasible anymore and hasn't been for a long time.