People were busy cheering with the vat on school fees, non-dom and business tax. What people didn’t realise was they came for the farmers, the people doing well, the business - they forgot it would be them next.
VAT on school fees has made private education more elitist and killed social mobility stone dead. Only the truly rich can now afford it, Parents with SEN children or who are making sacrifices to afford it - now can’t. This would potentially mean parents in that bracket dropping hours if they don’t need to pay fees. Less tax. Cause and effect.
Business now have huge costs they weren’t expecting. Private sector only of course. FTSE is shrinking. Hiring freezes. Mass redundancies. Jobs being removed and leavers not replaced. Less tax. Cause and effect.
Non-dom taxes resulted in the biggest flight of wealth we’ve seen. 157% increase in millionaires leaving. So much so, the chancellor needs to reverse some of those policies urgently. Less tax. Cause and effect.
100K taxes. Already a cliff edge with personal allowance, childcare etc. People mentioning on here that PIP should be taken away too at this threshold. People are already dropping hours and changing behaviour to stay under this threshold. You can have more in your pocket at 99k compared to 124k due to some marginal rates. People drop hours and it has been proven by many economists, time and time again, it reduces tax take. As well as pulling Drs and dentists out of the work force. Less tax. Cause and effect.
The net contribution argument is absolutely valid. If you tax net contributors out of productivity - they will leave or change behaviour. We’ve literally watched this live in action in the past 6 months. Considering the majority of the UK are net dependents - who is paying for it all?
People voted for Labour because they are traditionally the party of handouts. The truth is: higher earners were never taxed so much under the Tories. All the while, pensioners were protected, benefits updated by the huge inflationary rates and the welfare state increased. Labour have come in and taxed the people bankrolling state, so heavily, they’ve picked their ball up and gone home.
Anyone who was reliant on the state should’ve been terrified about what Labour were suggesting. Less productivity = less money for state. That means welfare and next, those essential jobs in the public sector will need cutting. The public sector does not generate wealth. People didn’t want to hear it.
The sad thing is, people didn’t listen. They thought they could keep voting for other people’s money with no thought to where it came from. The irony is, this will see the welfare state cut harder and faster. There is less money now - after the budget.
Like school fees and WFA, people who shouldn’t be will now be impacted. Some parents and children who are doing their all because their SEND child has been failed by the state will be forced out of education all together. Completely innocent victims of a tax grab which is going to provide nothing to the budget in reality. They have to suck it up with no sympathy. People voted for Labour as they made the mistake of thinking they’d protect the disabled. With whose money? They’ve scared off people fiscally contributing. Time to pay the piper for those voting decisions.