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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?

Cossy Tue 27-Feb-24 10:45:23

I just think this is the time for tax cuts, but then again I’m not a Tory MP wanting to be re-elected.

Although far from wealthy I would be prepared to pay more tax for decent public services and rather than a tax cut I’d rather see the personal allowance “unfrozen” and raised.

growstuff Tue 27-Feb-24 10:38:01

Rather than extending provision of childcare places, maybe he could increase the amount which is paid.

growstuff Tue 27-Feb-24 10:37:02

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.

growstuff Tue 27-Feb-24 10:33:25

One year, I received some help with childcare costs, but it was marginal and the next year a pay rise pushed me over the edge again.

MaizieD Tue 27-Feb-24 10:32:23

growstuff

If Hunt wants to win votes, the demographic he should target is people in their 30s and 40s with mortgages and childcare costs. Polls show that most of them are currently not predicted to vote Conservative.

Hunt can't do anything about mortgage costs because that's in the hands of the 'independent' Bank of England which is setting interest rates.

Childcare costs? Well, the extension of free nursery provision didn't go down well with providers who said that the subsidy promised by government wasn't enough to make their businesses viable. What else could he propose?

growstuff Tue 27-Feb-24 10:30:07

ronib

growstuff currently 2 x £50 is £100. Working 2 parent families are seeing some improvement but by no means enough.

It's over 20 years since I was part of a two-parent family. I can't remember further back than that. I don't even remember tax cuts increasing my income by £50.

ronib Tue 27-Feb-24 10:26:35

growstuff currently 2 x £50 is £100. Working 2 parent families are seeing some improvement but by no means enough.

growstuff Tue 27-Feb-24 10:16:39

If Hunt wants to win votes, the demographic he should target is people in their 30s and 40s with mortgages and childcare costs. Polls show that most of them are currently not predicted to vote Conservative.

growstuff Tue 27-Feb-24 10:12:26

ronib

MaizieD You seem quite out of touch on this. Even £100 monthly per working family will help young families. I agree though that there is an element of selfish interest in this country.

I don't ever remember tax cuts increasing my income by as much as £100 a month after a single budget. One hand has always taken away any "gifts" from a budget. Typically, the benefit (or loss) has been around £20. That's not taking into account knock on effect on prices or having to pay for services which were previously free.

ronib Tue 27-Feb-24 10:10:55

MaizieD The hotline is surely from government researchers scanning various comment sites? Although whether Gnet counts is another question!

MaizieD Tue 27-Feb-24 09:59:35

Genuine question, ronib. Genuine question. 😆

ronib Tue 27-Feb-24 09:54:57

MaizieD sarcasm doesn’t help your argument

MaizieD Tue 27-Feb-24 09:52:11

How do you know what the cuts will be worth, ronib? Hotline to Hunt?

ronib Tue 27-Feb-24 09:35:02

MaizieD You seem quite out of touch on this. Even £100 monthly per working family will help young families. I agree though that there is an element of selfish interest in this country.

ronib Tue 27-Feb-24 09:32:10

paddyann54. You have made a good case for increasing taxes for the higher tax payers and reducing taxes for young families with child care costs plus unaffordable housing. Also parity tax brackets for earned and unearned income?

MaizieD Tue 27-Feb-24 09:31:16

GrannyGravy13

ronib

Surely the IFS doesn’t think Hunt will be in government this time next year? So Labour will reverse all the tax cuts in their first budget?

Which is why some people will not vote Labour at the GE

Surely it's widely understood that tax cuts will equal cuts, swingeing cuts, to public services?

What selfish person would contemplate the prospect of a few extra pounds in their monthly pay packet (because that's all that tax cuts ever amount to for the average wage earner) as being more desirable than access to services which are already disastrously constrained?

I suggest that the minor stimulus provided by the tax cuts would be cancelled out by the loss of jobs and private sector business caused by cuts to public services.

paddyann54 Tue 27-Feb-24 09:25:33

I'm on the higher tax band in Scotland ,I am happy to pay it when it means that theres a payment for all children to alleviate poverty,slightly higher pay for public sector workers,free bus travel for students and low paid workers up to 22 years old and a lot more.I dont know anyone who has a complaint about the new tax system here ,most people DONT pay any more ,some actually pay less and the under £1000 extra a year I pay appears to be helpful . they are welcome to have it .Surely a careing society wants to pay its way?

MaizieD Tue 27-Feb-24 09:22:13

Germanshepherdsmum

What do you mean by ‘reforming council tax’ winterwhite?

One 'reform' could be revaluing properties. Council tax is based on extremely out of date property valuations.

I imagine that that would be a political hot potato, possibly equivalent to the poll tax objections and will be left alone.

ronib Tue 27-Feb-24 09:13:27

Good tactical play then by one party at least!

Germanshepherdsmum Tue 27-Feb-24 09:12:59

What do you mean by ‘reforming council tax’ winterwhite?

Germanshepherdsmum Tue 27-Feb-24 09:11:54

Indeed it is GG.

GrannyGravy13 Tue 27-Feb-24 09:06:08

ronib

Surely the IFS doesn’t think Hunt will be in government this time next year? So Labour will reverse all the tax cuts in their first budget?

Which is why some people will not vote Labour at the GE

ronib Tue 27-Feb-24 09:03:29

Surely the IFS doesn’t think Hunt will be in government this time next year? So Labour will reverse all the tax cuts in their first budget?

Whitewavemark2 Tue 27-Feb-24 08:51:48

winterwhite yes maizie which I sort of agree with, but my point is that whatever the truth, the tax cuts are constantly used as an excuse to cut public services and I see no reason for it to be any different this time.

winterwhite Tue 27-Feb-24 08:46:40

There’s a separate threadbare running about inheritance tax. Doesn’t sound as though that would be a popular area for a future tax-grabbing chancellor 😂
Someone will be along in a minute to refute the link between taxation and funding public services but seems real enough to me.
Reforming council tax would be a good place to start.