Motorists Undertaxed
Discussion
According to an interview on LBC today a study by Leeds University suggests that direct motoring related taxes cover only 1/12 of the costs of the road system etc, etc. The remaining 11/12s being provided my general taxation.
This is very different to our general perception. Even if we discount many of the factors as being too remotely linked it worries me. Whilst I recognise that all taxation is raised on our behalf to be spent on our behalf, there being no such thing as Government money,the balance of who pays what can impact dramatically upon the lives of individuals.
Academic tosh or a cause for real concern?
This is very different to our general perception. Even if we discount many of the factors as being too remotely linked it worries me. Whilst I recognise that all taxation is raised on our behalf to be spent on our behalf, there being no such thing as Government money,the balance of who pays what can impact dramatically upon the lives of individuals.
Academic tosh or a cause for real concern?
Academic tosh.
If motoring taxes are forecast to raise £40bn this year, they are saying that motoring costs 12 times this - £480bn? Isn't this figure rather more than the entire tax take of the treasury?
Notwithstanding the fact that the roads infrastructure is the same infrastructure that all public transport buses run on. And public transport - buses and trains - don't pay fuel duty.
>> Edited by Neil Menzies on Thursday 29th August 10:52
If motoring taxes are forecast to raise £40bn this year, they are saying that motoring costs 12 times this - £480bn? Isn't this figure rather more than the entire tax take of the treasury?
Notwithstanding the fact that the roads infrastructure is the same infrastructure that all public transport buses run on. And public transport - buses and trains - don't pay fuel duty.
>> Edited by Neil Menzies on Thursday 29th August 10:52
Same story as all these reports that the BBC et al are inclined to regurgitate.
A report is comissioned with very narrow parameters, hence it fails to take into account a hell of a lot of factors. Therefore, the value of the results are meaningless outside of the context of the report itself and the ideas the report was meant to test.
Complete waste of time taking any notice of it, with the way the fcukwit media report these things.
A report is comissioned with very narrow parameters, hence it fails to take into account a hell of a lot of factors. Therefore, the value of the results are meaningless outside of the context of the report itself and the ideas the report was meant to test.
Complete waste of time taking any notice of it, with the way the fcukwit media report these things.
Direct taxation has remained fairly static - it is the underhand taxes that have increased the overall level of taxation. Thing like holiday insurance tax, changes to VAT (other items being brought into the band), small increase but constant in fuel, changes to personal allowances, changes to pensions, all th etaxes on business that get passed straight to the consumer thru higher prices....
All these little things add up and that is why our Liberty Day (the day when we stop working for the Government and start working for oursleves is now in June not May (iirc) - either way it IS getting worse.
All these little things add up and that is why our Liberty Day (the day when we stop working for the Government and start working for oursleves is now in June not May (iirc) - either way it IS getting worse.
Pensions can no longer reclaim the tax that was paid on dividends before being distributed to them ... this is really bonkers given that Labour never questioned that pensions funds should be tax exempt.
They're also removing the cap on national insurance. This seems unfair because an individual is not going to be a bigger burden on the NHS or state pension system just because they are a high earner. The problem here is really that people think there is some special hypothecation of NI "contributions". This is hogwash. NI is just income tax by another name. Having a cap on an income tax would normally be thought highly regressive and unfair. So the change should be seen as (a) an increase in income tax, but (b) a probably unintentional senesible reform.
But most of the increase in the total tax take is due to economic growth. As we have progressive taxes (the more you earn, the higher the rate of tax you pay), and a pretty succesful economy, as peoples salaries grow there are more and more of us in higher income tax brackets. This always gives the opposition party a big stick to beat the government with, coz even if the economy is growing they can shout "tax is up". Well of course it is ... it's largely a mechanical process.
They're also removing the cap on national insurance. This seems unfair because an individual is not going to be a bigger burden on the NHS or state pension system just because they are a high earner. The problem here is really that people think there is some special hypothecation of NI "contributions". This is hogwash. NI is just income tax by another name. Having a cap on an income tax would normally be thought highly regressive and unfair. So the change should be seen as (a) an increase in income tax, but (b) a probably unintentional senesible reform.
But most of the increase in the total tax take is due to economic growth. As we have progressive taxes (the more you earn, the higher the rate of tax you pay), and a pretty succesful economy, as peoples salaries grow there are more and more of us in higher income tax brackets. This always gives the opposition party a big stick to beat the government with, coz even if the economy is growing they can shout "tax is up". Well of course it is ... it's largely a mechanical process.
I think there's a euro agreement to try and balance income and spending taxes across Europe. Some countries (Nordic and Belgium spring to mind) have very high income taxes.
Removal of NIC cap is only on the 'extra' 1% they added (or will add from next April).
The bugbear for me is always employers NI, which never seems to get mentioned. Its up 1% too - to 12.8% next year. If you consider the pool of money that employers have to pay employees, including any rises, the tax take from April is 12.8% employer NI, no ceiling, 12.8% employee NI, ceiling on all but 1% of it, and then income taxes up to 40% - so for high earners, something of the order of 60% of the employers payroll cost is going in 'tax'. You don't see Gordon Brown bandying that one about.
Removal of NIC cap is only on the 'extra' 1% they added (or will add from next April).
The bugbear for me is always employers NI, which never seems to get mentioned. Its up 1% too - to 12.8% next year. If you consider the pool of money that employers have to pay employees, including any rises, the tax take from April is 12.8% employer NI, no ceiling, 12.8% employee NI, ceiling on all but 1% of it, and then income taxes up to 40% - so for high earners, something of the order of 60% of the employers payroll cost is going in 'tax'. You don't see Gordon Brown bandying that one about.
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