To be worried about the tax cutting obsession

[SnowyLamb]

Among the leadership candidates?

I'm sure tax cuts will win them an election, but I really can't see how they're the answer to the current crisis. It feels really dangerous to me.

Even Margaret Thatcher increased tax during the recession, she didn't cut tax until we were through the other side.

Well, decreasing income tax a little will not necessarily create a big gap in teh budget it if has the impact of improving the economy generally (more spending and investment) as the increased revenue will come from other places. One way to improve the economy is to invest rather than to cut back.

I thought this diagram explanation was interesting: ifs.org.uk/taxlab/key-questions/where-does-government-get-its-money
Income tax is only about 25% of the country's income. Decreasing that a little if you bolster the other ones doesn't do any harm to the bottom line. Plus better economy, more people working/ earning more, more income tax.

Doesn't it worry you that reduced taxes will have a detrimental impact on public services? Many of us might think it wouldn't affect us, maybe that's true, until a child needs special needs provision or we suffer an agonising wait for an ambulance or A and E. Doesn't a civilised and compassionate society need to raise and allocate sufficient taxes? The knock on effects will surely touch us all in some way.

Not if the knock on effect is to improve the economy.

Wandsworth?

Now Labour are in our low council tax is likely to go 😩

It would be great if it did boost the economy ... Win-win indeed... But a decade of Conservative austerity and low taxes hasn't really managed that so far. Taxes pay for adult social care for the elderly to get care outside of hospital, freeing up a hospital bed, allowing another patient into A and E, freeing an ambulance to get to their next life or death call... This kind of knock on effect does need some kind of funding from our taxes right now - perhaps when that is sorted, tax cuts could be considered. When they are offered in the current situation in which so many are suffering from underfunded public services, it seems like callous timing. And populist. Maybe they'll offer us a pony as well!

Why? Most tax is just wasted (look how much was spent on Track and Trace and how much of our taxes are wasted on vanity projects by politicians). Better to reduce spending and waste and let people decide for themselves how they spend their money. Something like 50% of the population doesn't pay any tax which means the pressure is on the remaining 50% to pay it all. Totally unfair.

@DoNotWorryBeHappy no, it doesn't worry me. I truly believe we are taxed far too much already and more disposable income is good for the economy.

@vermicello

But surely if that's the case those 50 % are either unemployed (low presently)
On low wages (high presently)
Or part time for what ever reason. Caring duties etc. (Saving govt money)
Or disabled etc
Why would you want them to pay more tax.

Yes I think this too.

and I also suspect tax cuts only means corporate tax.

Some people, not all, are struggling.

Lots are and it is now hitting groups that it doesn't usually.

Yes, but giving people more to spend via tax cuts will fuel inflation and male the price rises even worse. So individuals will be no better off and there'll be less money for services.

It's something they'll talk about but meet a brickwall of reality when they come into power.

And if they do follow through on it then great - the average british voter hates public services being cut a lot more than paying taxes.

This is a libertarian stance, and is thankfully in the stark minority.

Precisely.

Why are 43% of people not paying income tax?

Firstly, it is important to establish which groups of people are in this category: unemployed, stay-at-home parents, full time carers, homeless and retired. Also, those earners who make less than the Personal Allowance amount of £12,500. There are 43% of our population living on less than £12,500 per year.

It would seem that a rising proportion of retirees and the constant increase to the Personal Allowance amount in recent years are the most significant reasons why we have reached such a high percentage of people not paying any income tax.

This is really frightening me. They're buying their way into being Prime Minister. Disappointed in the lot of them, apart from Rishi who is unable to do a damn thing after setting out price rises.

Everyone in the UK pays a lot of tax, even those on no earnings.

Fuel, council, VAT etc

I'm more cross about one of them, Sajid Javid perhaps, who said that they would cut the budget of each government department by 20%. Back of a fag packet plan, that. Why 20? Have you investigated each department thoroughly to forensically determine how this cash will be saved? Have you thought about how this would impact services on the ground? Naaaaaahhhhh.

Tories gonna tory. At least Rishi is being a bit more honest. He knows how screwed we all are.

That was Zahawi @AngelicaElizaAndPeggy. Good thing he hasn’t a hope.

it's important to keep in mind that all the candidates are only talking about cutting corporation tax and a bit on fuel. That means the public wont feel any of them. That's all for businesses. It will not help those who cant afford things now and it will screw up everyone else who uses public services because the plan is to cut those.

Everyone who lives and shops in the UK pays taxes........most taxes are not income tax. Not everyone pays 20% income tax but everyone pays 20% VAT tax

It needs both, other European countries plough a lot more per capita into their health services.

The NHS has been cut, cut, cut away and what's left is a shit encrusted shell of a service. It needs money and to be run like a business (note I said like a business, not as a business, I am not for privatisation)

We should remember that they're not appealing to the general public. It's not a General Election. They're trying to attract voters from among their party membership.

As always, they'll say whatever they think will get them more votes. Hence Jeremy Hunt talking about fox hunting - it seems utterly bizarre to us at this time but, to many of their membership, the cost of living isn't a problem and they want a return to their traditional meets.

Corporation tax is another that appeals to their donors and members far more than Green issues.

No doubt it'll all be forgotten once they're actually in - if they ever get there and Johnson doesn't backtrack on his promise to resign.

But it's linked, the party isn't going to back someone who is unlikely to win them the next GE. That would be silly

Hasn't the last couple of years shown you anything? Johnson demonstrated fully how a Prime Minister can say what the hell he likes, he doesn't have to do any of it.
In any case, that's what Jeremy Hunt is hoping to do by putting Esther McVey in as deputy (so he says!). He's trying to show how he could appeal to the greatest number of people. He doesn't have to actually do any of it, though. None of them do.

But it's linked, the party isn't going to back someone who is unlikely to win them the next GE. That would be silly

It should be linked, but I suspect not.

As we've seen, large numbers of voters will vote for whoever the press tell them to vite for. The press is run by businessmen. THAT's who they are really trying to appeal to - I think. Murdoch and the like...

But it's linked, the party isn't going to back someone who is unlikely to win them the next GE. That would be silly

Of course it is. It appears that Sunak is the candidate the left most fear in a GE, they’d be mad not to elect him.