pete75 wrote: ↑20 Jul 2022, 5:52pm
pwa wrote: ↑20 Jul 2022, 5:41pm
Cugel wrote: ↑20 Jul 2022, 3:36pm
.........There will be many around the world who are having the full schadenfreude, recalling our past history and those events involving various thieving and violent predations by the British state and its agents (commercial & military) upon their country and its denizens. It's hard to blame them, despite such feelings being of no real use in repairing the long tail of the various damages Britain has wrought over the whole globe in the past few centuries...............
I believe people who have strong feelings about today's UK because of wrongs done by Britain in the past are themselves just as guilty of living in the past as people who like singing "Land of Hope and Glory". Both are mired in stuff that belongs to another age.
As for tax cuts, people on low to middle incomes are feeling the pinch at the moment, so I believe some reduction in the tax burden for those groups would be a good idea. NI isn't paid on very low incomes so cutting that won't help the poorest as much as those on middle incomes. Raising the Income Tax threshold is, similarly, not going to help the poorest much, as they already don't pay on most of what they earn. But cutting VAT might help everyone, and reduce inflation.
What public services do you propose cutting to pay for these tax reductions? Here's what we're likely to get when the Truss is PM
https://www.theguardian.com/commentisfr ... mic-future .
Apparently her cuts will be really good for folk with an income over £140,000 a year - do you regard that as middle income?
I don't know how tax receipts are fairing, but I'd be surprised if taxes on fuel are not proving to be a bit of a bonus for the state coffers right now. VAT receipts from goods that have gone up in price will have risen too, of course.
I'm not sure why you asked, but no, I don't regard £140,000 as middle income. In my own way of calibrating things, a household of two adults and two kids on a joint income of £30,000 to £60,0000 is in the "normal" income bracket. I don't imagine it is nice trying to bring up two kids on as little as £30k, but people do. £70,000 is not anything more than comfortable these days. That is obviously quite a range and those at the lower end are certainly facing the pinch already. They need some relief.
Inflation is high because of two things. Firstly, fuel costs and their direct and indirect effects. And secondly, wages trying to keep up. To some extent a cut in VAT would reduce inflation and therefore the need for more wage increases. Perhaps it would be better targeted if it were limited to goods and services below a certain price point.
I don't anticipate great choices from Truss.