The Next Conservative Budget

[Gargamel]

http://www.telegraph.co.uk/finance/budget/11718594...

The more I hear about this budget the better I like it.

Obviously, it is always going to be difficult for individuals who are affect by job cuts, but with the pricate sector hiring regularly lets hope employment is easy to find. But 100,000 civil "servants" less is good news in my opinion.

Market rents for housing, cuts to subsidy and a return to some sensible business and entreprise friendly policies

I know the usual suspects will squeak like it is the end of the world, but really getting us back to a current account surplus is of paramount importance to this country.

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rover 623gsi said:

it isn't higher rate taxpayers - it is people earning more than £40k in London and £30k outside London.

A great way to incentivise lower paid people to earn more...

Thin end of the wedge though in my view. But logically, why should someone on say £18,000 pay tax, that is used to subsidise the housing of someone earning double ? Sure, there is some disincentive, but there are distortions at every level of income (like a 62% marginal rate of tax for going from £101,000 Paye to £110,000


We already know that most people earning below £30,000 are taking out more from taxation across all services than they are putting in. We need to re address that balance over the next five years.

Less state interventions, employers paying better wages, lower taxation, less Government, less free stuff.

It is unrealistic to expect the Government to reverse 20 odd years of welfare state growth in a single budget, but the direction of travel is encouraging.

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oyster said:

Lots of reference to 'hard-earned' and 'tax already paid', but let's not kid ourselves that most of the wealth in question for this tax is an unearned windfall by way of house price inflation.

I am all for rewarding hard work and investments, but having your main residence treble from £300k to £1m wasn't because you put in more hours at work or because you showed entrepreneurial zeal!

Agreed, but it also underlies the case for private wealth to be distributed according to the wishes of it's owner

If £1m is the house price now, then without that money being passed on then we will eventually be priced out of our own country by inherited wealth from overseas, as they will be the only ones who can afford housing...

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edh said:

IHT is a bit of a sideshow, but nonetheless shows the direction of travel of a Tory government... Prioritise the rich and property owners.

I still don't understand how I or anyone else can say that the massive rise in our house prices is a result of our hard work. This unearned and tax free increase in asset value is at the heart of the IHT debate.

Benefit cuts will do some serious damage. Tax credits are flawed, and have had serious unintended consequences, but the spurious notion that reductions in tax credits will be offset by an increase in IT thresholds is nonsense. Millions of tax credit recipients don't pay IT already. I don't see that wages will magically rise to fill the gap. How about raising Eers NI threshold on all jobs that pay the living wage?

Still, I understand that the Tories have now abolished poverty, so that's fine..

Further reductions to local government will cripple them - depends where you live of course as to how big the cuts are/ will be. Look at the damage to sports participation as a tiny example of how LA services are withering away.

Should the Government fund Sports or the Arts ?

This is the fundamental reason why we have a bloated government, and too high taxation. Tax us less and we can pay for our own Sports and theatre tickets thanks.

I think the idea is that Tax Credits will start to apply at a lower level - say no one on £26,000 or more gets a TC. This won't affect those who earn below the Income tax threshold.

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oyster said:

The bias this government has towards the blue rinse brigade is what shocks me the most.

- Pensioner bonds
- Protect universal benefits
- Triple-lock state pension
- IHT threshold rise

The demographic of our society with the most wealth and lowest productivity is doing the least to help clear the deficit and debt.

That is the core Tory vote....so it isn't a massive surprise. However the state pension is clearly something that we need to protect. arguing about in work benefits or swimming pools is one thing. Pensioners unable to afford to heat their housing or eat enough is a whole other thing.

Funny how when the left talk about the nasty tories attacking the most "vulnerable" in society, they fail to mention this aspect of Conservative policy.

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TurboHatchback said:

Inheritance is one area I disagree with the Conservative ideology, I would be all for 100% inheritance tax and hugely reduced income tax to compensate. Inheritance coupled with property prices is one of the main drivers of inequality, rich families stay rich and get richer while those born poor will never attain true wealth or own their own homes so will never pass anything on so the cycle continues.

Obviously my viewpoint is biased as I won't inherit a penny but from an academic standpoint it would be much fairer for society in general to have penal rates of inheritance tax and use the resulting revenue to cut taxes on work, hugely raise the income tax threshold etc to reward achievement rather than just being born rich. I couldn't care less what happens to my wealth when I die but having most of my income taken as tax while I'm alive is displeasing.

Pretty much everything else (rumoured) in the budget sounds good to me. Bring on the benefit cuts .

So if I become rich enough to buy an estate in the country with a few acres, then my son becomes the farmer on that estate, having been born there - I have to make him homeless and fire him from the job on the basis of your 100% tax?

Far better to scrap the whole thing, it is a double tax anyway. Essentially I am taxed on accumulating wealth all through my life, and then you want what is left over at the end.

Also - pretty sure you can start with nothing and make a fortune still...

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dazwalsh said:

god help us all if sugerbear ever gets into power, 100% IHT, crazy fool!

The state appointed representive will arrive at your dying mothers bedside waiting to prise her wedding bands from her cold stiff fingers the moment she passes.



(Could only be a socialist policy, even the evil Tories draw a line somewhere)