Rachel from accounts has crashed the economy

[Almn0etd]

So borrowing costs are now even higher than when Liz Truss was around.

The economy is well and truly cooked and in a far worse shape now that Rachel accounts is in charge.

Why isn’t this dominating the news cycle? Because it’s Labour.

The Tories were atrocious. Labour are an indescribable disaster for this country, surpassing the lowest of the low bars. Cue Labour apologists who don’t mind being made poorer and having the country destroyed, as long it’s Labour doing it to them.

The post grads and postdocs are the ones who actually do the work. They are paid much less than permanent staff. Not sure what the alternative is?

*DinosaurMunch *

They probably equate pensioners with Baby Boomers and all Baby Boomers are rich so don’t need it.

As I said they expect the rich to pay

It's obvious what people want. Low tax and good services. Any fool (or opportunist cynical politician like NF) knows that. Unfortunately, getting there is not easy. It's people who say it's easy that we should be wary of.

It's certainly not common sense that the way to increase tax revenue is to decrease taxes. Someone's been reading too much reform party propaganda.

Countries with good public services (Sweden, Netherlands, Germany for example) have higher tax rates than countries with poor public services (UK, USA).

You can see the impact of Reeves higher taxes on the private sector already so how would you get that growth Labour do need with more taxes?

Already talk of cuts being an option so how does that help?

Do people really use Western Union?

(I hasten to add that I declare my world wide interest etc on my UK taxes. Nor is there loads of it! It’s just that one is quite limited with what one can do financially holding dual US citizenship. (No stocks and shares ISA for me, for example). )

Labour have inherited a mess, they are not perfect and will make some mistakes but I would rather them than anyone else.

The problem is that nothing seems to show they understand how to turn everything around

Everything they have done has just made it worse

Reducing taxes to increase revenue has been around since before Nigel Farage learned to walk

Ronald Reagan campaigned on this in 1980. In America it was credited to an economist called Laffer at USC. Laffer’s graph showing increasing tax revenue as tax rates decrease quickly became known as the Laffer Curve.

Unfortunately the effects of applying his principles to the American economy were anything but amusing.

@Yalta said "One place I see that is a drain on funds is the number of people sending money outside the country to support relatives abroad. It runs in to billions. Those billions are not being spent in this country"
Having lived in Tower Hamlets I am of the opinion that the drain of funds to other places has contributed to Whitechapel remaining one of the poorer areas of London.
It was obvious around the time of Brexit, new money exchange shops like Western Union and even little Bangladeshi shops having a handwritten notice in the window about the latest rates. Poland, Nigeria, Bangladesh, India. Perhaps only one or three hundred pounds a time was transmitted. Living frugally in crowded conditions but sending to the 'family'. They didn't buy furniture or do business with other shops except for basics.

You are of the opinion this is why Whitechapel remains poor? You don't actually have facts and figures to hand, by any chance do you?

Or is it your opinion and therefore is as valid as any other even without facts?

@SugarPlumpFairyCakes In my second line of the post I say contributed to
We know that there are many people working in the area, we do not see shops with good quality goods on sale, or much 'middle of the road' clothing. What are they spending their money on. It is obvious that there is a well established service industry specialising in the transfer of money overseas.
Because of my lack of precise numbers are you really willing to ignore what I and others have observed.

Countries with good public services (Sweden, Netherlands, Germany for example) have higher tax rates than countries with poor public services (UK, USA).

While this is true, even the lower paid pay more tax at higher levels than 20% from the first £1 earned; the top rates of tax are similar or lower than the UK for higher incomes.

Why should first hand observation require written facts?
It's pretty factual that if a large number of people live frugally but send cash abroad, the area will remain stagnant in terms of prosperity.

Remember too that each sector will buy essentials, cars and services run by their own culture, who will also be sending that money abroad.

Instead of a British society where we all aim for the same purpose, this country has become a series of communities. Where the only thing we have in common is receiving from the State.
Thing is, the State also needs money coming in, but if all the communities are operating as self-contained entities, that money will run out.

The UK is second only to Germany in the European GDP table, but GDP per head drops to something like number 34. Someone isn't contributing.

The government immediately blame the unemployed and early retired but due to the usual sensitivities never mention the above.

When we consider that a single person only becomes a net contributor to the State when they earn £40,000, we can see the difficulties.

Actually @Papyrophile Statista says that Denmark has the highest top rate of personal income tax in Europe, just over 55%. The Danes are also consistently amongst the happiest people.

Statista also says that Austria and France have top rates of 55%, and the top rate in Spain is about 54%. The top rate in Sweden is about 52%.

Tax makes you happy. A new line I guess

Although so does a growing economy with access to jobs, so how would Labour increase taxes again without causing more damage?

We can see it already in contraction of the private sector

She’s not an accountant either AFAIA. She’s a complaints handler.

The irony.

And that’s the hard uncomfortable truth. Tax rates need to increase on the majority, not the minority, to raise a meaningful amount of money. Everyone needs to contribute more. But the mantra that ‘the rich should pay’ has taken hold and so no one, not least a Labour government, will face the unpalatable truth. What is needed is a comprehensive overhaul of the income tax / NI system, not a constant fiddling at the edges.

Customer service wasn’t it? ‘We are sorry for the delay in answering your call, we are experiencing a high volume of complaints from the electorate at the moment. Please hold the line, your call is irrelevant to us. A low level MP will respond as soon as they can; all our Ministers are hiding at the moment’ ☺️

No one is saying the contraction is great. Only that ‘tax cuts grow the economy’ doesn’t have much of a track record either, with the aptly named Laffer Curve providing the biggest so called joke.

And when there is a crisis it’s possibly best to start with those who can afford to pay: well off pensioners and the dead.

I agree with you about the taxes paid by the majority.

When the rich obey the spirit of the law (including legal gifting) they pay a fair share. The rules around trusts are too lax, however. Witness the lack of tax paid by some of the wealthiest dukedoms in the land recently.

Edit: lack of IHT

ROI have done pretty well with lower CT

Labour are not just hitting well off pensioners

And you can say contraction is ‘not great’ which is an understatement but you’d like higher taxes still. The last four months have directly shown the relationship between taxing businesses and private sector contraction

Now there’s discussion over public sector cuts. How does that help?

The whole of Westminster are inept.

A quick way to make sure every citizen pays tax, is to make it an offence for both parties to deal in cash without a receipt. No more paying for services into a private account either. Anyone trading, must take payment into a business account.

We're just too soft. The grey economy costs billions in lost revenue. Remember when Greece nearly went bankrupt due to tax dodgers.

I don't care which government corrects things. I didn't vote Labour but wanted them to succeed.

Laffer theory also states that there's an optimal point to maximize revenue. But the Tories, like th US Republicans, believe that if tax cuts don't work, you need to cut them more.

In reality economic analysis says that a major cause of poor productivity in the UK is lack of investment.