Budget - What would you do?

[OwlHoot]

Armchair economists, what would you do to boost Britain?

Me? Well, glad you asked.

1. Bring dividend tax and income tax inline with each other, but lowering income taxes slightly and raising dividend taxes up. This will benefit most workers, and those relying on dividend income have generous ISA allowances anyway, so can receive divvy income tax free.

2. Reduce VAT to 15%. Everyone should see almost everything 5% cheaper, boosting consumer spending and the economy overall.

3. Bring in a £20K per annum fee for all work permits. So employers using them have to pay the workers wages AND pay the govt £20K pa for the privilege. If they don't like it they can spend £20K p.a. training up or sponsoring a UK worker instead.

4. Stick road tax for all diesels up another £1000 to help on pollution. I don't drive a diesel BTW.

You were doing so well until you got to 4. (I have a diesel Rangerover)

But don't forget the last Labour government were doing their damnedest to talk everyone into going diesel!

[greenlake]

Budget - What would you do?

[Lance]

Yes, it was correct move to increase it to 20% - essential items are VAT free and 2.5% increase is like one off inflation.

When you DECREASE VAT then prices don't drop - it's completely wasted move that only increases margin of retailers.

VAT is one of the most collectable taxes, it should have slowly gone up to 25% over 5-10 years, with income tax slowly reducing to put more money into people's pockets, and THEY can decide where to spend money (including on essential items that are VAT free)

Spectacles and tampons are non-essential?

[AtW]

Spectacles and tampons are non-essential?

Fuel is also essential, it is needed to get to work to earn money in order to survive, why is it there is VAT on it and massive duty?

[northernladyuk]

Apply a punitive Brexit tax on nursing home care and murray mints.

[Lance]

Fuel is also essential, it is needed to get to work to earn money in order to survive, why is it there is VAT on it and massive duty?

We agree that VAT is not a fair or progressive tax then?

[jamesbrown]

Apply a punitive Brexit tax on nursing home care and murray mints.

He spoke the unspeakable!



(Coupled with a punitive Bremoan tax on nappies and wet wipes, that could raise some serious moolah.)

[BrilloPad]

We agree that VAT is not a fair or progressive tax then?

It should be removed. Along with income tax. And replaced with a tax on assets.

[AtW]

We agree that VAT is not a fair or progressive tax then?

Words like "fair", "progressive" should never be used with taxes.

Govt can't exist without taxes, even ISIS collected it, like it or not taxes are about amount that can be raised without depressing economic activity (which would lead to reduction in collected taxes).

VAT is very efficiently collectable tax on consumption - it should be simplified by removing crazy number of exemptions, like cakes are VATable and biscuits are not.

Increasing VAT is much better than increasing income taxes (which includes so-called NICs), this is what Tory Scum plans for after Hard Brexit - them WTO 10% duties will serve as effectively extra VAT on all imports, a step too far in my view, much better increasing VAT to 25% (over 5 years period).

[WTFH]

VAT is a fairer tax than income tax, in the sense that the biggest consumers pay the most VAT, and the very rich/big businesses can’t use schemes and trusts to avoid paying it, but VAT should only apply to non-essentials.