How should covid be paid for?

[KenDodd]

I think there should be a small wealth tax (up to 1%) and before anyone starts saying I'm just jealous or whatever, I would be in for thousands of pounds that I don't have and would have to owe. I feel really strongly that we can't just load yet more debt onto the young, they have it much worse than my generation did already (I'm 51).

Yabu - No to wealth tax
Yanbu - Yes to wealth tax

If you vote No, please suggest an alternative that you think would be fairer.

I reckon the people who got the benefit of furlough should be taxed for it. As a business owner, I got a Bounce Back loan to tide me through. But it's a loan - I'm expected to (and will) pay it back.

This is so true. So many in my business network had no support, no income since March yet will be expected to pay higher taxes going forward.

As for elderly social care (which this thread seems to have veered off into) I reckon it should be funded by increased inheritance tax.
Didn't Theresa May suggest that in her 2017 manifesto? Look how that went.

With interest rates likely to be tiny for years, debt only becomes a problem if you can’t service it. There are steps that the government could take to help matters.

1. Remove the Triple lock on pensions
2. Remove the winter heating allowance for anyone who earns above a certain amount.
3. Remove child benefit for anyone earning above a certain amount (lower than the current £60k)
4. Reduce higher rate tax relief on pensions
5. Freeze the personal allowance for a few years.
6. Increase income tax by 1% for basic rate tax payers 2% for higher rate tax payers and 5% for additional rate tax payers.
7. Reduce capital gains tax allowances.
8. Reduce inheritance tax allowances - if nothing else this will encourage people to distribute wealth to their children before they pass away. (The residence relief should stay for those who only own a home)

I reckon the people who got the benefit of furlough should be taxed for it
I assume you mean taxed some more?
Income paid under furlough is already subject to income tax just as if it were ordinary pay.

So how would the wealth tax affect me, and my husband. Both self employed worked all our lives paid all our taxes, not high earners. No private pension but got two small buy to let's instead, small mortgage on both, would we have to pay but someone else with massive pension not?

Taxes on second or more properties

There are already taxes in place

Stamp duty
Tax on income earned
Capital gains tax when the property is sold

@Imtoooldforallthis

They could also tax pension funds more heavily should they wish. Reduce the tax free cash allowance at retirement, increase the tax on the fund. Reduce tax relief on contributions.

I don’t think they will do any of this or introduce a wealth tax as it’s their core vote they are penalising so they won’t do it.

[quote HRH18]@Imtoooldforallthis

They could also tax pension funds more heavily should they wish. Reduce the tax free cash allowance at retirement, increase the tax on the fund. Reduce tax relief on contributions.

I don’t think they will do any of this or introduce a wealth tax as it’s their core vote they are penalising so they won’t do it.[/quote]
The last thing they need to do is discourage pension savings as that will be a key part of reducing the future generation’s welfare bill

Not that George Osborne thought that far in front in 2014.

BadBad, I agree about tax inspectors not being local any more. when I set up my firm in the 1990s we had regular visits from the VAT inspector who looked at expenses, invoices etc - they came to my home (I work fro home) and it was all fine -nothing was wrong but it was part of their regular checking process and as they were local they got to know who was in their areas.

@DdraigGoch

As for elderly social care (which this thread seems to have veered off into) I reckon it should be funded by increased inheritance tax. Didn't Theresa May suggest that in her 2017 manifesto? Look how that went.

No. She suggested that social care in the community be put on the same footing as residential care, ie the value of property should be included in means testing. She also wanted the amount you could keep raised from £23.5k to £100k.

I voted against a wealth tax as I think taxes are already very high. I can’t see why one section of society should fund COVID which had been for all.

I believe self employed people should be taxed more if they have lent on government schemes, to the same levels as the employed. I also strongly agree with posters highlighting corporate tax dodgers as a good focus area.

I think the government should look to see how remote working practices could stay to reduce the masses it spends on offices, ferrying people about, MP allowances and second homes etc. Also perhaps we pay it back slowly, no aggressive austerity again please god!!!

I voted against a wealth tax as I think taxes are already very high
Are you serious?

I think we might be missing a trick if we restrict it to paying for covid. It's about how we pay for everything.

Women shouldered 86% of the costs of austerity. Let's not repeat that.

Somehow those with more should lay more. At what point I don't know. I've always said I'd be happy to pay more to protect the NHS and education (I know it doesn't work like that)

My Dad (anti-Tory and anti-Thatcher) has always said that the poll tax was the best tax we never got (though it was tested out on us Scots!) purely viewed as a replacement for council tax. So a lady in a massive house would pay less than a smaller house with 4 earning adults. Fair because the 4 earning adults are 4 times the draw on local resources versus the lady on her own.

So something like that? Streamline the system. Every adult who earns pays a contribution to society. As you earn more you pay more.

Tie up any tax loop holes

Some universal benefits are cheaper to keep universal than develop the systems to means test.

It's so difficult. Let's not make it hard for those just about getting by.

I'd be happy to pay a bit more if the likes of Dyson, Amazon et al even paid the minimum that would be expected of them.
As to Premier League footballers... don't get me started.

I believe self employed people should be taxed more if they have lent on government schemes, to the same levels as the employed.

Why do you think they don't pay the same tax as employed people? (Helpful hint - they do!)

Maybe we should give up on leaving the EU or at least strike a Brexit deal. Supposedly a no deal Brexit will cost 2 to 3 times more than covid in the long term whereas on with a trade deal will be almost 2 times as damaging.
www.theguardian.com/politics/2020/sep/23/no-deal-brexit-will-cost-uk-more-than-covid-report

mama, upper rates of tax /NI for the self employed are 45% tax and 2% NI = 47% same as for employees though. Some self employed people have set up a limited company (I haven't) but even there their company pays corporate tax on profits and when the money goes out to the business owner they pay tax on that - the tax position is just about the same now between sole traders and those with limited companies as they changed taxation of those small companies.

I would like to see a reduction in tax for most people and a smaller state. In Norway adults pay something like £20 per doctor visit. Sweden has abolished inheritance tax. The UK has moved up to a high tax country in the EU. In fact never in the UK history have so few people paid so much of the tax as the highest bands are so high now and things like stamp duty are huge never mind 40% inheritance tax when you die.

A good start would be to not give MPs £3k payrise!

A really good place to start would be the triple lock on pensions which ensures that pensioner incomes rise consistently faster than other sectors of society. Linking to average wages would reduce expenditure and free up cash. Then take public sector pensions so that they do not pay out on a vastly expensive defined benefit basis which has not been available to the rest of us for years. Similarly fuel allowances and other benefits should be means tested.These are obvious changes, but given who votes and a growing aged population. No chance.

‘Take public sector pensions’ Fuck you

I’ve been paying into my tiny public sectors pension, which will still be tiny when l retire.

Tax the rich not the public sector who are in fact key workers.

@TheEmojiFormerlyKnownAsPrince

‘Take public sector pensions’ Fuck you

I’ve been paying into my tiny public sectors pension, which will still be tiny when l retire.

Tax the rich not the public sector who are in fact key workers.

You do very well out of your public sector pensions and will enjoy 2/3rds of your salary in perpetuity when you retire. No one in the private sector has had anything like this hugely beneficial benefit for years. Sorry you do not like it. My view remains your pensions should not be better than the private sector and it is unreasonable for the rest of us should pay for it. Interesting that when someone points out the extent of this huge benefit, which we all fund you react so sharply.

@VanGoghsDog

I believe self employed people should be taxed more if they have lent on government schemes, to the same levels as the employed.

Why do you think they don't pay the same tax as employed people? (Helpful hint - they do!)

Actually we pay less national insurance, I believe.

My public sector pension is worth 5k a year. Sure take it, but leave those earning millions alone

Actually we pay less national insurance, I believe.
For an employed person, the company and the employee pay NI contributions.
For a self employed person, only they person pay NI.
The self employed person will pay less NI than the employed person but the total contributions will be higher for the employed person (because additional money comes from the company).

@Averyyounggrandmaofsix

A good start would be to not give MPs £3k payrise!

Yeah, that'll save billions won't it???