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Tax Cuts

(94 Posts)
Whitewavemark2 Tue 27-Feb-24 04:57:03

So Hunt is looking to cut taxes at the Budget.

Putting aside whether or not tax funds public spending, we know that historically the Tories have used the excuse that tax revenue drives public spending.

So cutting taxes has meant cutting public spending.

What cuts would be welcome by the public I wonder?

ronib Tue 27-Feb-24 13:36:40

Another point to consider is that a lot of jobs do not pay a fair living wage. Not much has been said about this.

winterwhite Tue 27-Feb-24 18:19:24

Thanks, ronib, I've been trying to make this point up and down this thread but less successfully than you.!Taxing 'unearned' wealth acquired from e.g increases in house prices seems fair enough to me and doesn't deserve to be resented outright.

MaizieD Tue 27-Feb-24 19:03:14

I, puzzled, winterwhite. You haven't said anything about low earners?

I do agree with you about council tax, but I think it wouldn't be at all popular.

The pips can squeak all they like about IHT. It's not as though their heirs are left penniless...

rafichagran Wed 28-Feb-24 00:12:00

I get my state pension plus a occupational pension, I pay tax on the occupational part. I do not mind, but would like to see the personal allowance increased.

Grantanow Wed 28-Feb-24 14:01:47

It's just more Tory bribery to get votes. I think many people are fed up with the government and will ignore this kind of short term blandishment.

Susie42 Wed 28-Feb-24 14:15:52

I would like to see the Personal Allowance increased at least for pensioners and the low paid. It appears that the state pension for my husband and I will be more than the personal allowance so we will be paying more tax on our occupational pensions in the next tax year.

Romola Thu 29-Feb-24 12:04:55

Council tax does need reform. There should be at least two more bands. The inflation in property value, particularly in London and the south-east, has produced a situation whereby houses sold for multi-millions incur relatively low council tax.
Already council taxes from richer areas are partly vired to poorer areas. A reform producing higher rates of council tax would help with "levelling up".
Would the house-holders with valuable properties vote for this? Probably noymt, but others should as it would benefit them with better public services.

Cossy Thu 29-Feb-24 12:06:20

Susie42

I would like to see the Personal Allowance increased at least for pensioners and the low paid. It appears that the state pension for my husband and I will be more than the personal allowance so we will be paying more tax on our occupational pensions in the next tax year.

Same here, once I am eligible for my state pension in December this year, when I turn 66, I then will have to pay tax.

The personal allowance freeze should be removed and increased! It benefits low earners.

Cossy Thu 29-Feb-24 12:12:07

growstuff

I don't know Maizie. People in rented accommodation will see a temporary boost in Housing Benefit (already declared) because the Local Housing Benefit is to be readjusted, but I wouldn't mind betting that will be an excuse for landlords to increase rents.

Private renters receiving HB already have to pay quite high top ups.

yaiyai Thu 29-Feb-24 12:32:32

I certainly do think council tax needs reform. Where I live we have a situation where modest detached houses built circa 1970 have , in many,cases, more than tripled in size due to extending sidewards and backwards using up most of garden. Living in these houses are as many as six adults plus children. Is this fair? Not contributing to council coffers. No wonder councils are struggling.

Callistemon21 Thu 29-Feb-24 12:34:23

What cuts would be welcome by the public I wonder?

Only increasing the personal allowance.

Lizzie44 Thu 29-Feb-24 12:35:31

The Tories are touting tax cuts because they see it as a vote winner. But what kind of country and society do we want? After 15 years of austerity and cuts our public services are on their knees. Do we want our schools, NHS etc to just go on getting worse with the most vulnerable going to the wall? I'd hope that we are a more compassionate society than that. Rather than handing out tax cuts the Government should look at closing tax loopholes, such as offshore accounts - a vain hope as they are always going to look after their own. But I'd like to believe that the electorate are too savvy to be bought off with simplistic bribes. I hope the electorate will look at the bigger picture and and the kind of society we want for the future because at the moment it's not looking pretty.

rosie1959 Thu 29-Feb-24 12:51:55

yaiyai

I certainly do think council tax needs reform. Where I live we have a situation where modest detached houses built circa 1970 have , in many,cases, more than tripled in size due to extending sidewards and backwards using up most of garden. Living in these houses are as many as six adults plus children. Is this fair? Not contributing to council coffers. No wonder councils are struggling.

They tried that once remember the Poll tax that went down well

growstuff Thu 29-Feb-24 13:06:05

Cossy

growstuff

I don't know Maizie. People in rented accommodation will see a temporary boost in Housing Benefit (already declared) because the Local Housing Benefit is to be readjusted, but I wouldn't mind betting that will be an excuse for landlords to increase rents.

Private renters receiving HB already have to pay quite high top ups.

I know. I'm a private renter, but I'm amazingly lucky because the landlord has only put up the rent once (£50) in ten years. I know he could get more if I moved, but he'd have to redecorate and buy new carpets (fair wear and tear).

I also claim Housing Benefit. At the moment, the Local Housing Allowance doesn't cover the full rent, but it will after the increase. I don't know how much better off I'll be because my income (pensions) are increasing too.

I think more unscrupulous landlords will use the increase in Housing Benefit to increase rents, so tenants will once again be playing "catch up".

growstuff Thu 29-Feb-24 13:07:26

PS. I pay full council tax (minus the 25% reduction for single occupancy).

growstuff Thu 29-Feb-24 13:09:52

PPS. I pay income tax on my pensions. If the income tax threshold were increased, I would pay less income tax, so presumably my housing benefit would decrease.

4allweknow Thu 29-Feb-24 13:22:36

Latest I read was that no tax cut proposed. Cut in NI was being looked at but, nothing confirmed from what I have seen in the media.

Seagull72 Thu 29-Feb-24 13:49:19

Would rather have better services than pie in the sky tax cuts.

Jess20 Thu 29-Feb-24 14:15:23

I would prefer a simplified system where it's less easy to dodge paying your share as a very high earner just because you have a good accountant or use things like non-dom status. I'd like to be able to fill in the forms without needing help, far too complex. I'd like to see NHS and social care ring-fenced, taper relief brought back for long term landlords to encourage them to help solve the crisis we have in housing availability. I dislike stealth taxes and Vat on essential items. I don't mind paying tax, even paying more tax, but I want clarity about what it's going to pay for. I think a step back from constantly cutting services would be useful, legal aid needs funding, for example. I'd have a serious look at whether people would be better served by renationalised water, power and public transport on the basis that if a private company can pay dividends to their shareholders and make profits so could we as a nation benefit from that profit with lower costs which might give people more money left after nondiscretionary spending. I would also ensure the civil service had the funds and staffing to do their jobs properly, currently the regulators are either underfunded and toothless (hence sewage problem) or trying to screw us over for minor transgressions over parking, CAZ violations etc without providing good signage, busses and alternatives. Ramble over, I'm sure there's a good reason I'm not in politics.

ordinarygirl Thu 29-Feb-24 16:12:50

too many local authorities are struggling so I would not be happy with cuts in services.

yaiyai Thu 29-Feb-24 17:28:43

Rosie1959 I know about the poll tax but it doesn’t mean council tax can’t be adjusted due to extending. The old ‘rates’ back in the days before double glazing and c/h were the norm, went up if you improved your property by such as indoor bathroom etc. in my opinion the poll tax was fairest. Non working adults didn’t pay.

rosie1959 Thu 29-Feb-24 18:06:44

Must admit I can’t remember rates being set on improvements to property. Rates pay for public services which we use so if I improve my house why should I pay any more I won’t be using anymore services ?

Wheniwasyourage Thu 29-Feb-24 18:26:59

Good post Jess20

Dinahmo Thu 29-Feb-24 18:45:22

Cossy

Susie42

I would like to see the Personal Allowance increased at least for pensioners and the low paid. It appears that the state pension for my husband and I will be more than the personal allowance so we will be paying more tax on our occupational pensions in the next tax year.

Same here, once I am eligible for my state pension in December this year, when I turn 66, I then will have to pay tax.

The personal allowance freeze should be removed and increased! It benefits low earners.

Probably only 20p in the £

growstuff Tue 19-Mar-24 15:21:04

Cossy

growstuff

I don't know Maizie. People in rented accommodation will see a temporary boost in Housing Benefit (already declared) because the Local Housing Benefit is to be readjusted, but I wouldn't mind betting that will be an excuse for landlords to increase rents.

Private renters receiving HB already have to pay quite high top ups.

I know. I am a private renter and receive Housing Benefit. I know the Local Housing Allowance (eligible amount) will be increased, but still don't know whether increases in the state pensions and my occupational pensions - actually, I know they will but don't know yet by how much, so it's difficult to budget for the months ahead.