Tax Increases after Corona

[lemongrassmartini2021]

Anyone have any ideas what tax changes we might see post Corona. Increase in income tax? Inheritance tax? VAT? Corporation tax? Stamp Duty?

Obviously no one knows until there is a budget announcement but just wondered what people thought.

I wasn't making the (obvious) point that someone earning 60k pays more tax than a person who earns 30k. I was pointing out that a couple earning 60k combined (30k each) have a higher take home pay than an individual who earns 60k. That's where the "single person supporting a second person should pay more tax" argument falls apart.

Or national debt to pass onto our children and grandchildren who are the ones suffering most now anyway

Just like the debt from WW1 which my generation spent most of our working lives paying off, even though it ended before we were born. I honestly don’t think it’s children who are suffering the most. There are people of all ages for whom this horrendous.

God knows I still don't understand what the fuckery we are doing. The government seem so lax about the financial impact. Meanwhile 000s of workers want to go back to work.

@TrainspottingWelsh It sounds like you’re saying that access to public funds should be based on a person’s individual contribution. In which case, someone earning 12.5k shouldn’t be able to take anything as they won’t have made any contributions. It isn’t consistent to say that the non earner in the couple is getting something for nothing but those who are paying less tax into the system should have as much as those who pay more

@Nikhedonia but again, I haven't said people on different incomes pay the same tax. The argument doesn't fall apart at all. A single person on £30k will contribute the same as each member of a couple earning £30k, and yet a couple with a single earner on £30k will only contribute the same, despite two people taking out.

Not at all lady. If person A has no choice but to contribute zero and take out way beyond average, and person B contributes thousands a month but takes out pennies, then that's exactly how it should be. The point is that the above works better if everyone capable contributes.

@TrainspottingWelsh it makes absolutely no sense as a policy, so falls apart immediately.

How do you define what additional tax a single earning household should pay?

What about a single earning household who are net contributors to the economy?

Why doesn't it make sense? It doesn't make sense that I can decide I'm happy to support dp financially for living costs, and then decide on behalf of the taxpayer they are all happy to support him too if he needs access to public services. Even without the added burden of covid there are far more useful things to do with general taxation than granting free passes to perfectly capable people.

Whether as a couple they are a single earning net contributor is irrelevant. We could drop one income and still be net contributors. (Not a stealth boast, we're comfortable and lucky health wise etc rather than massive earners). But it wouldn't be right to suggest we should only have to contribute on the one income.

Off the top of my head, I'd just stick an obligation on everyone over 18 to pay at least the same contributions as average salary, with exceptions. If you're paying through the normal routes on a different income would be an obvious one. Plus people like carers, full time students, those who can't work etc. Everyone else would only be excused, reduced or deferred due to income.

So if eg I decide to take 5yrs out to contemplate my navel, dp pays a contribution in line with average salary to cover our decision. If however I take 5years out as a carer my contribution would be excused.

and then decide on behalf of the taxpayer they are all happy to support him too

Everyone who has children and isn't a net contributor does that though? So should there be a higher tax levied on parents, with a scaling increase for each child?

TrainspottingWelsh your Family on 13k a year would be entitled to TAX FREE benefits like tax credits and UC which would give them a larger income, a pensioner on 13k a year would be paying tax. I am going to keep working and defer my state pension next year when I get to pension age, I will also be taking my private pension (if its going to be worth anything), yes I wont be paying NI (which after 51 years of paying it I am not going to feel guilty about) I have already worked out on my last pension statement how much extra tax I will be paying when my private pension is added to my salary and it is more than the NI I wont be paying, and of course my employer will still be paying employers NI on my salary