Economic suggestions for government

[Crikeyalmighty]

Following on from local elections I played a game of fantasy politics with myself - lol and here are some of my thoughts - interested in others thoughts - as a disclaimer I’m a Lib Dem voter , sometimes Labour ( depending where I’ve lived. ) I realise it’s difficult to be objective when a particular policy would hit ‘you or your family’ - and several of these would hit mine negatively , some positively.

1. I would bring NI payments in at £30 week or £50 a couple for any who have taken early retirement at 55 until 67 and drawing over £40,000 a year between them as pension drawdown - at the moment they contribute zilch in NI and will pay tax but only at 20% unless they have lots of other assets/investments. Given that NI is partly towards future state pensions and health I fail to see why they get years paying little towards it -

1. Stamp duty - get rid altogether and charge capital gains tax of 5% on profit made between purchase price and sale price - if it’s negative no CGT due.

1. Child Maintenance counts against benefits (UC) after 12 months- I don’t get why some people receive reasonably good amounts and yet can still claim UC in full - it discriminates against those getting little who don’t have the option to do a bit if part time etc as maintanance more than makes it up and causes resentment.

1. Allow mothers ( or fathers) on whatever income to receive free childcare hours) unfair that those paying in most actually get few benefits at all and can end up worse off than those getting said bebefits

5 Bring in social care insurance at age 40 of 2% of income to cover off any care home/care at home needs and limit any assets that can be used to £80k - after that insurance kicks in -

6 make it a crime for tradesmen or any business to offer cash in hand jobs- a lot of these people are claiming and fleecing the rest of us

7 get rid of corporation tax on profits under £100k for any business that pays all staff ( directors included) by the payroll , so tax and NI fully paid and where all staff are paid at least NMW - at the moment an awful lot pay minimum to cover off a minute NI contribution and then dividends which attract no NI - ( I know this myself as did it for a lot of years- have now changed to banging most of it via payroll) basically to get my CT down.

Actually that sounds all fairly reasonable, except you won't get any votes from the over 40s and especially not from the retired vote.

One of the worst things they did (in my opinion) was to increase employers’ NI as it just makes it more expensive to employ people. I’d reverse that and try and have some incentives to employ young people.

I’d also remove the cliff edges on tax thresholds and even it out with tax rates. All it does is encourage people at that level with young children to drop hours which isn’t necessarily what we actually need.

And, whatever your views are on the merits or otherwise of the new rental laws, as it’s acting as a disincentive, they need to find a way to sort that out or provide more housing - and not then sell that off too.

I’d agree with the stamp duty so long as those who have paid it multiple times over can offset those payments against the tax.
Stamp duty is, at least in the last decade, the government taking its cut up front (primarily because CGT on primary residence would be so unpopular.)

Bringing this in without any such adjustment would mean people being double taxed on the same asset.

I think there needs to be more redress from boomers who have milked final salary pensions, generous social care and decades of property equity growth. Unsure what/how.

Definitely need to see the end of Defined Salary pensions in the public sector. These cost the taxpayer about £13 billion every year. They should be taking on the investment risk like everyone else has to.

Make it illegal for massive corporations to do shady deals with HMRC. Cash in hand is a spit in the spitoon compared to what those paying Big 4 tax consultants manage to avoid.

And we need a system when CMS comes directly from men’s income and any ‘self-employed’ are made to account for every penny.