cuts - Wednesday's Spending Review

[mrsbaldwin]

Brace yourself ladies - these cuts are big, there will be tens of thousands of public sector redundancies and it's said (by the Fawcett Society amongst others) that they will disproportionately affect women.

Some workers will get some sort of payoff, and some will be pleased to go. Some will find new jobs.

But I reckon the overall effect (licks finger and holds it in the wind) will be to drive down women's wages, meaning that once you are made redundant from your public sector post you may find more work but it will be at a lower rate and the extra competition for jobs across the board will drive wages down across the board. This may be true for men as well but I think it will affect women - mums - more.

If you are watching the press coverage on Weds, what do you think the effects of the cuts and the job losses for women (and mums) will be?

[hubblybubblytoilntrouble]

Well with respect popelle, I disagree.

AFAIK, although the top rate of 50% is a few percentage points higher than most (not all) of our EU neighbours, it does kick in at a significantly higher level of income.

As for the the laffer curve, even those who support theory recognise is only an ever an estimate and it is not without controversy.

Hallow, don't be obtuse please. Whilst VAT might not apply to food and children's clothing, the costs associated with producing and distributing these items are subject to VAT. Those additional costs are passed onto the consumer, big business certainly does absorb them from some sense of charity.

[ImGideonsMumAndIHateHimToo]

here

but don;t get excited by chidlren's clothes- they end at a surprisngly low age (ds1 is out of chidlren's shoes now by VAT satndards)

[peasantgoneroundthebend4]

Loudlass from what I heard ling as one person is working 24 hrs at least then should be ok it's if one person works 16 other none then between them they have yo make it up to 24

[merrymouse]

Aha a hypothetical point where if you tax people too much revenue goes down. What a lovely idea. Presumably there is also a hypothetical point where if you make too many people redundant you end up paying the same amount of money in benefits. (Or maybe they just plan to go and live under a bridge).

So really what hubbly said again:

"What you seem to be saying is that's just fine and dandy, the poor will have to take it on the chin because we don't want to risk upsetting the rich folk.'

[uyter]

Nearly everything Riven except food, childrens clothes and a few other things. It is also only 5% on utilities

[CardyMow]

HalloweeseG - Children's clothing is only exempt from VAT up to age 11-12 clothing. Which my 8yo DS1 is wearing. He is 4ft7. My 12yo DD is in ladies clothing, she is 5ft2, and I've been paying VAT on her clothing since she was 9yo. I need saucepans to cook with - VAT. I need a new cooker because mine breaks - VAT. The amount of VAT that I pay on essentials is a very high percentage of my entire income. Even San pro for me and DD is subject to VAT. The poorer you are, the greater the percentage of your total income goes out on VAT.

[CardyMow]

Can someone please clarify for me that BOTH partners in a couple have to be working a part of the minimum 24 hrs/ week to qualify for WTC? Because if that's the case, we will lose £320 a month if I can't find anyone to employ me. And given my uncontrolled epilepsy and 200 job applications in 3 yrs, it's incredibly unlikely that I will find anyone willing to employ me. I need to know because that £320 WTC a month will be the difference between us being able to pay our rent or us not being able to pay our rent. And therefore becoming homeless.

[HalloweeseG]

Vat is an extremely effective way of collecting money from non doms.

Its also extremely cost effective to collect.

Hmrc costs several billion to exist every year, we'd be a lot better off having a high vat rate and no income tax. Childrens clothes and food are exempt.

[HalloweeseG]

Merrymouse, "tax close to a maximum yield rate" is probably referring to The Laffer Curve.

In a nutshell , there is a critical point where tax revenues begin to fall when the tax demand is too high. Mrs Thatcher cut the top rate of tax from 60% to 40 % yet managed to increase revenue at the same time.

[popelle]

hubby Income tax is already at 50% for the top earners and 40% for higher earners. I don't think there is any scope for any further increases.

[popelle]

merrymouse I think she means that that taxes are already at or close the rate at which they bring in the most revenue. Its called the laffer curve, once you raise taxes beyond a certain amount then you actually get less revenue.

[hubblybubblytoilntrouble]

popelle, VAT is very different to income tax. Once again, it disproportionately affects the poorest.

I'm guessing that even the tories realise that, but it seems they don't give a shit. That's why people complained.

[merrymouse]

And what on earth is a 'tax close to a maximum yield rate'?

[merrymouse]

"What you seem to be saying is that's just fine and dandy, the poor will have to take it on the chin because we don't want to risk upsetting the rich folk.'

Exactly.

Also, plenty of people have buckets of cash because they inherited it, not because they have even have brains worth draining.

[popelle]

hubby the coalition is tackling the deficit through spending cuts and tax increases. The ratio is 27:73 I think although I might be slightly wrong and when the Government put taxes up ie VAT then people complained as well

[expatinscotland]

Here, here, hubbly!

[CardyMow]

Erm - Does this mean, in fact, that DP and I are fucked? I am unable to get anyone to employ me due to my disability (that I no longer get DLA for), I've been looking for 3 YEARS. I have applied for over 200 jobs, and haven't even been given an interview.

DP works 37.5 hrs a week. I am a SAHM. Will we not qualify for WTC then, if I can't get a job? I also have caring responsibilities for DD who is nearly 13yo, but cannot be left alone due to her asd and her epilepsy and her heart condition. There's NO childcare in my area for any DC over the age of 11yo. Jeezus tae fuck if they take our WTC away because I can't work, We will be homeless because we won't be able to afford the £111 a week rent we are going to have to pay when they make us move in January. The fucking fuckity fuck fuck, that cannot be right surely, that BOTH people in the couple have to work???

[hubblybubblytoilntrouble]

huddspur, I'm honestly getting sick of saying it but these cuts are not the only way of tackling the economic situation.

You dismiss tax raising powers, saying it will cause a brain drain. Where is the evidence for this? Really, how many people will up sticks and leave the country if we stick another few pence on each tax band?

Do you really have such a low opinion of wealthy people, that you think they'd all bugger off if they're asked to make a fair contribution?

The point constantly hammered home by the tories is that 'we're all in this together', yet the Institute for Fiscal Studies have stated that it is the poorest workers in the country who will bear the biggest burden.

What you seem to be saying is that's just fine and dandy, the poor will have to take it on the chin because we don't want to risk upsetting the rich folk.

My own opinion is that some might leave, most probably wouldn't. I don't believe that all wealthy people are self serving, selfish twats.

For those that are, who genuinely think it's fine for the poor to shafted whilst they remain in their ivory towers, I say good riddance. Believe me, there's plenty of good people ready to step into their shoes.

[peasantgoneroundthebend4]

ah see i think Cb did need looking at as so many do not need it though do think the double income long as both under 44 is unfair compared to single person earning just under

[huddspur]

Yes the election campaign was a farce with Cameron/Brown/Clegg all promising things that couldn't possibily be delivered considering the fiscal position of the country.

[hubblybubblytoilntrouble]

Yeah, like not touching child benefit. Lying bastards.

Personally, I'd like see him and Clegg sued for breach of contract.

[peasantgoneroundthebend4]

hmm being honest my aspiration are not that high its beeing able to afford heat and food for my dc maybe to simple view of it

[huddspur]

I suspect he was just trying to talk his way into No10, most oppositions like to promise the world to the electorate