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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

What exactly is the Conservative government doing or going to do, for the 'working classes'? What are their tangible, core policies, to benefit the average Joe & Jane?

128 replies

MaggieLightBlue · 12/05/2017 14:48

Just that

OP posts:
christinarossetti · 14/05/2017 22:51

Yes, I did a lot of reading into how economics work after the 2008 financial crash.

It's intriguing, fascinating and utterly terrifying.

Of course people who earn more pay more tax. It still, on the whole, leaves them with sufficient money to pay their outgoings. Many of these people also have personal wealth accumulated in property, investments etc.

Lower earners pay less tax, and many don't have sufficient money to meet their basic needs, hence the situation we have that one of the richest countries in the world relies on donations to food banks to feed the families of lower paid workers.

emilybrontescorset · 15/05/2017 17:03

The poorer people in our society, and that includes those who work, are hit much harder by indirect taxes than the rich are. For example a rise on vat will do far more damage to someone who spends 50% of their income on bills than it will do to someone who spends 10% of their income on bills.
So x has one full time job and no other income their take home pay is £1000 per month £500 of that goes on essential bills.
Y has a full time job as well as recieving monthly income from bonds and investments. They were also left property worth a fortune when a wealthy relative died which they rent out. From their job alone they are paid £10,000 per month. Their bills total £1000.
Assuming vat is paid on these bills a rise of 1% would see an increase of £10 for X and £100 for Y This means that X is left with £490 per month and Y £8,900 plus the income from other sources.
It is a fact that the poor have a higher propensity to spend whilst the rich have a higher propensity to save.
Spending money within the economy helps lots of people. Saving money merely he!ps those who save. The benefits of giving more to those who spends are huge.

Beebeeeight · 15/05/2017 20:57

Income tax is only a fraction of the total tax take.

It really bugs me when people talk about it as if it is the only revenue stream!

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