Tax Cuts!

A

andrewb

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Tackler
All 3 parties appear to be falling over each other to cut taxes with Cameron and Brown apparently announcing them tomorrow morning.

I'm sure there will be a wide range of tax cuts, the purpose of which is to stimulate the economy. What I want tomorrow is a massive tax cut on energy saving products. Not only is it good for the environment, but buying energy saving products is a fantastic way to reduce fuel bills which can really help people out financially.

What do you make of the tax cuts once they're out? Any bets on if I'll get my wish? :D
 
see what yer getting at, but no point cutting tax on energy products when people aint got the dosh to buy em.
 
I need a hair cut.

I hope tomorrow's announcements will help me decide how much to have off.
 
cashman said:
see what yer getting at, but no point cutting tax on energy products when people aint got the dosh to buy em.
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Yes very salient point, my suggestion would only work in conjunction with other tax cuts. The energy one would not provide instant relief, which we desperately need right now.
 
cashman said:
see what yer getting at, but no point cutting tax on energy products when people aint got the dosh to buy em.
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...or are too afraid to use them, because they're frightened the bill may be so high they'll struggle to pay it.
 
I think that they should start with cutting petrol and diesel tax first . They have got to get the transport industry back on its feet first to transport the goods around the country !
 
Being selfish like, just hope he will do a U-turn on the 10% disaster ...affecting me plenty at the moment, and will give me a little more to spend come Christmas ... :help:
 
I would like to see reductions in Income Tax to benefit the lower paid. An increase in the personal allowance (amount earned before income is taxed) would take many people out of the taxation bracket, and rightly so. Anyone earning, say, £10,000 a year is on a low income yet he/she will pay tax on any earnings over £6,035. He/she will only be eligible for Working Tax credit if working 30 hours a week or more.

The personal allowance should be increased to, at least, £10,000. The loss of revenue could be paid for by increasing the higher rate of tax to 50% for those earning over, say, £100,000 a year.
 
Why not get rid of the Tax loopholes that the very rich (all those bankers for example) exploit to pay little or no tax. Then introduce a 20% tax for everyone, regardless what you earn. This will encourage people to work harder and better themselves.
 
Boeing Guy said:
Why not get rid of the Tax loopholes that the very rich (all those bankers for example) exploit to pay little or no tax. Then introduce a 20% tax for everyone, regardless what you earn. This will encourage people to work harder and better themselves.
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sounds ok, only problem i can forsee is MPs probably use those loopholes themselves in many instances.:D
 
Rather than messing around with tax cuts this and any government should be looking at how our taxes are spent or should that be wasted.

A huge chunk is spent on departments collecting them, not forgetting the hundreds and hundreds of Quangos. The reader can name the rest.
 
lancsdave said:
I heard it mentioned of a 5% cut in the VAt rate. Only one problem we aren't allowed to do it :(
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We only pay 5% on fuel bills and 5% is the minimum allowed by the EU.
It may well be possible to extend it to other things, and Ken Clarke was suggesting this very thing on tv a few days ago.

At the moment there is a petition to #10 which is asking for it to be applied to real fruit juices, and it has a large number of signatures.
 
MargaretR said:
We only pay 5% on fuel bills and 5% is the minimum allowed by the EU.
It may well be possible to extend it to other things, and Ken Clarke was suggesting this very thing on tv a few days ago.

At the moment there is a petition to #10 which is asking for it to be applied to real fruit juices, and it has a large number of signatures.
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Ten days after I posted that - the good news has arrived
Brown and Darling slash VAT in £18bn tax gamble - UK Politics, UK - The Independent
 
I wonder if this VAT cut will actually cost shops money?

They will have to change the VAT rate that has sat still for 34 years.
I wonder if it will be easy for all the online sites to change their VAT levels. I know it should be easy but you never know.

This sounds good for now but it has been suggested VAT could be over 20% in a few years to pay for it all.
 
(quote andrewb) What I want tomorrow is a massive tax cut on energy saving products. Not only is it good for the environment, but buying energy saving products is a fantastic way to reduce fuel bills which can really help people out financially.

We already have reduced vat on energy saving products, energy efficient boilers for example attract 8% vat, the company buying the boiler pay 8%, but it is still 17.5% to the end user, so it does reduce the invoice to the customer, but not as much as it could if the 8% was for the total job, and not just for the purchase of the boiler, if joe public bought a boiler, I am fairly sure it would be at 17.5%, because the distributors know you cant claim the vat back. Fuel duty at 57p per litre would be the wisest place to cut tax at this present time.
 
derekgas said:
(quote andrewb) What I want tomorrow is a massive tax cut on energy saving products. Not only is it good for the environment, but buying energy saving products is a fantastic way to reduce fuel bills which can really help people out financially.

We already have reduced vat on energy saving products, energy efficient boilers for example attract 8% vat, the company buying the boiler pay 8%, but it is still 17.5% to the end user, so it does reduce the invoice to the customer, but not as much as it could if the 8% was for the total job, and not just for the purchase of the boiler, if joe public bought a boiler, I am fairly sure it would be at 17.5%, because the distributors know you cant claim the vat back. Fuel duty at 57p per litre would be the wisest place to cut tax at this present time.
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Thank-you for that, very interesting, I hadn't realised that was the case.

As for the VAT cuts which are going to be announced tomorrow, I do hope they are properly funded tax cuts rather than being backed up by even more borrowing. We're already seeing our pound plummet in value, if it goes too far the rise in prices of imports will out weight the cut in VAT.

We're in this mess because the government allowed the private sector to over borrow, and now it almost seems like we're trying to counter that by over borrowing in the public sector. Time to live within our means.
 
The only thing with these tax cuts is the massive borrowing to pay for it, we are already in debt to the tune of around £60 billion (the biggest debt in our history) and we will have to pay it back. Its the idea that by putting more money in the pockets of the the less fortunate, they will spend more, but will they. A lot of the people in this category are pensioners, who are far more thrifty than most and are likely to put the money away in order to pay for things when the inevitable increases appear
 
Stop wasting our money Mr Brown then you wouldn’t have to borrow - to pay back later.

We don’t need all the white elephants and we certainly don’t want them.

Push the energy companies to put the prices back to what they were in June.
 
I have just seen on the news that vat is to be cut to 15%, that is good for things vat was paid at 17.5% for, but cold food, kids clothes etc are non vat, so this will only benefit business, if they pass it on that is good, but I suspect you may get 2.5% price hikes to cover for the lost revenue.
 
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