How much do you think taxes will increase after all this?

[Namechangervaver]

The government has had to spend unprecedented amounts of money during this crisis. Obviously it will need to be paid back. How high do you think taxes will need to increase to recoup the money? I'm glad I don't have to make the decision!

Oh wow, Nicola Sturgeon has said the time has come for UBI:
www.independent.co.uk/news/uk/home-news/universal-basic-income-ubi-scotland-uk-nicola-sturgeon-coronavirus-a9498076.html

It would consist of an annual payment of £5,200 a year for adults and £2,600 for those under 16.

Hmm not sure £5200 a year is quite going to cut it

I doubt they’d increase VAT, that would be really stupid. The best tax rises that should have been implemented years ago would be an increase on CGT and especially removing the home exemption for CGT. I doubt they’d be able to make that much on that though. Even so those changes should be implemented, it would do wonders for the housing market.

If the government decides to make up the shortfall by taking on loans (or issuing bonds) they may choose to go down the devaluing currency path but that has its own problems.

@ChrissieKeller61 everyone always thinks they should be thrown a bone, that’s why the country was in such a bad place to begin with. Nonetheless it may be worth getting a good lawyer to look at your insurance policy. Brokers are telling people they aren’t covered without actually knowing that that’s the case (most policies are fairly open ended so there won’t be a definitive answer a large company goes the one of the higher courts with it). We considered it but ultimately the business has been able to adjust to the situation so far.

@Bertoldbrecht a universal wage is a bit pointless and also hugely wasteful. Most people are going to make more than anything the government can offer but the cost of administration plus delivering it would be considerable. Realistically it wouldn’t be possible to offer something high enough to negate the need for benefits altogether which is usually the argument used in support of it. There’s also a question of principle. Why should people be entitled to other people’s money for no reason?

Personally, I think UBI is a good and workable idea.

I agree, UBI would work here because once everyone knows they can afford the rent and basic bills each month, they are less stressed, more productive and feel secure to apply for jobs - any job. They don't with up the difference between benefits and minimum wage jobs and decide that with childcare or travel that it isn't worthwhile. Going to a minimum wage job would be the difference between surviving on UBI and living. Holidays, savings, family car etc. The economy would flourish. Lots more people participating in work and making purchases. The UK missed an opportunity to implement it in March. Instead paying some £2500 (some couples up to £5000) per month.

It’s going to cost us so much, I mean we are paying 80% of people’s wages that alone is huge money, how much does the food box scheme for the shielding group cost, extra PPE, making an app to do contact tracing and many other associated costs we can’t even imagine.

Don’t get me wrong we do need to help those in need but it is costing so much money and we will all pay for it for a long time to come.

It amazes me some don’t even think about what’s to come you see posts on here well I’m furloughed I love it more time with the children.....yes you wait until the recession kicks it. A lot of the furloughed will find themselves unemployed shortly anyway as many businesses won’t survive this and if they do they will need much less in the way of staffing, for a lot the furloughed scheme is a sticky plaster that will soon start peeling off

£5200 a year is £100 per week. For context, the current state pension is (up to) £134.25 per week. I think that’s a reasonable level for UBI (especially if it applies to children as well as adults, albeit at a reduced rate). After all, the idea is that you’ll work to top up your income.

@DianaT1969 how would the government be able to afford to give people enough money to survive on though?

I think they will legalise cannabis to pay for it... probably all the other drugs too!

@OublietteBravo not everyone can work though? Are we supposed to expect them to live on that? Think of how many women will end up staying in abusive relationships or churning out more babies in that scenario? Benefits are important and shouldn’t be replaced by a UBI unless it’s actually enough to live on.

UBI doesn’t replace benefits it’s the baseline. So everyone gets that ... what do you think they do with it ... they spend it to kick start the economy. Providing business isn’t allowed to take the piss as they did with tax credits and say yay now we have cheaper labour we don’t need to pay people enough to live on.
I’d actually scrap all UC and tax credits and force employers to pay people properly and if they can’t. Come back when you can

UBI would only work if there are rent controls, otherwise the immediate response from landlords would be to up rents by £100 per week.

we must make sure the extra money doesn't go straight into landlord pockets, what use is universal basic income if no one can afford to pay for a roof over their head!

@ChrissieKeller61 if it does save costs on administration of benefits then it’s pretty pointless. The idea that taking money away from productive people and giving it to unproductive people will kickstart the economy is pretty naive as well. £100k in the hands of an experience businessman type is going to do far more good than £5k in the hands of people who are just going to spend it on random crap.

We need people to buy random crap more than
We need a business person to save £100,000 ... the main reason I’m so pissed off I can’t apply for a bounce back loan is that everyone I kenos who’s got one has already spent it on random crap knowing if/when the business goes under in 12 months time they don’t have to pay it back and they’ve got a free new car from the government

How works UBI work? Surely no one one would go to work and specially not for low laid but essential jobs like carers and street cleaner

Here's some options from when I've considered the idea in the past-

My DH could give up work and make money from his hobby instead (something he's been looking into for a while and could definitely do). So he sets up his own business, somebody else gets his current job.

Alternatively, I'd reduce my hours and job share. Two people working part-time instead of one working full time. I'd spend more time building on making money from hobby (already started, but the pandemic meant it's on hold, it's not as labour intensive as DH's so doesn't need me to devote so much time to it).

The idea that taking money away from productive people and giving it to unproductive people will kickstart the economy is pretty naive as well.

The economy needs people spending. If nobody is spending the economy is fucked. doesn't matter if a clever business man has 100k to invest. If nobody is buying he has nobody to sell to.

Of course there's environmental issues, and we need to cut back on people buying disposable-lasts-five-minutes-then-it-breaks rubbish, but that's going to involve a massive change to how we live that, frankly, is unlikely to happen until it's too late.

Interesting article here How a one-off tax on wealth could cover the economic cost of the coronavirus crisis

This point especially:- "There are strong ethical arguments in favour of a one-off wealth tax. If the costs of the pandemic were added to the public debt in their entirety, to be serviced out of conventional future tax revenues, we would essentially be saying that those who engage in economic activity after the crisis should pay for the emergency healthcare spending and economic bailout enjoyed by taxpayers today. That is what happened following the financial crash of 2007-09: incomes earned in the long boom that preceded (and in many ways precipitated) that crisis contributed comparatively little towards the cost of the economic rescue package required in the wake of the crash. By contrast, those who sought to enter or progress in the labour market post-crisis bore the brunt of financing it."

From the same conversation article about wealth tax
Other countries may introduce similar measures to tackle the costs of the pandemic, further complicating any avoidance strategies. The idea has already been mooted in Germany and the United States, for example
the fact that this is a global situation makes it a good opportunity to implement a wealth tax!

someone will work it out. Will be very noticeable is my prediction.

Has anyone heard the (oft repeated on BBC radio) assessment of 40 yr old UBI in Alaska? It doesn't sound like a panacea for anything.

B1rdbra1n "the fact that this is a global situation makes it a good opportunity to implement a wealth tax!"

Quite. Nowhere for anyone to move their wealth to.