warrenm2

With changes in the tax system that have already been published, next year will see the highest rate of taxation EVER in the uk. Worse than the last Labour Government in fact!

A basic rate tax payer now pays £48.50 in tax for every £100 earnt. Read and weep!

http://www.timesonline.co.uk/article...092829,00.html

Brit_in_Japan

There are different definitions of tax and the % we pay. Another viewpoint is to look at the "Tax Freedom Day", the day in the year we have to work to pay all the taxes we owe.

If you look here you will see that the Tax Freedom Day has been much later than it is now and was latest in the early '80's during the first term of the Thatcher government.

The trend currently does indicate we will be paying more next year than this.

warrenm2

As you say, it depends on what you include or not. As NL favours stealth taxes rather than direct taxation, the Tax Freedom day is not quite so comaprable, a classic example would be insurance tax for instance. In the Times story they are calculating the total tax burden which includes the stealth taxes

2000TLondon

There needs to be more than two tax brackets, I think, a new bracket for very low incomes and a new bracket for very high incomes.

Also, corporation tax should rise.

If you actually stop and think about where your money goes, and where and when you are taxed, it is scary. You're taxed on what you earn, what you spend, what you save, holidays, insurance, benefits........ and you still can't get an operation on the NHS or drive your car without risking your alloys to potholes.......

_RIP_

And with morons like lewis claiming to be happy paying an ever increasing tax burden, then we will continue to get stuffed.

Petem95

PSL is mearly a forum troll, and probably likes Labour due to their generous benefits. Hes not wealthy, just likes he not 77 or whatever.

The real problem with Labour's taxation is;

a) They spend the massive amount taken poorly - way too much goes on benefits/scroungers/immigrants/legal aid

b) They have allowed the economy to get into a unsustainable state. Cheap borrowing has fueled asset prices (such as housing) and these things have fueled consumer spending, which has kept the economy afloat when it should have been in recession (or very close to). The problem is this source of money is now coming to an end. The £11 spent for every £10 earnt by the average consumer over the last 5years or so now has to be paid back.... and its going to be painful.

scoobynutta555

Corporation tax should either stay the same or go down, madness to suggest it should go up. You seriously advocate raising tax for business? The UK generates vast wealth from inward investment which would be severly jeopardised with higher tax for business.

The less companies invest here the more unemployment you have and you'll end up in a vicious circle.

I'd like to see some informed debate on flat taxes.

Petem95

You mean a tax on BTL? (Buy-to-Let) This is whats really needed, and would solve a lot of housing and social issues - but the problem is so many MP's have 2nd, 3rd homes etc which they rent out, and MP's tend to protect their own interests as much as they can....

Basically mortgage interest relief should be removed for investment properties. In fact its crazy that its allowed now. So if a rental property received £1000/month in rent - and has a £1000/month interest only mortgage then theres no tax to pay.... without the relief there'd be £400/month to pay for higher rate tax payers.

scoobynutta555

Not property tax in regards to flat tax, but a fundamental change in the whole taxation system. Many countries are looking into 'simplifying' their tax systems where everybody above a certain threshold pays the same tax rate. It's supposed to simplify the tax system no end, even to the point that accountants etc are not needed as much or at all in many cases.

The theory being that by simplifying the taxation system more tax will be paid, leading to a lowish tax level being implemented, ie say 18%. Several east European countries have implemented it with Romania having a rate as low as 13%

I'm not sure how it works or even if i have the basics right in this *explanation*, thats why Id like to see more informed debate in the area. Apparently David Cameron was flirting with the idea at one stage

The Zohan

You might, looks like i am off to Dubai!

unclebuck

Exactly. Lewis claims to be happy paying the '50%' income tax rate, when in fact the highest rate is 40%. Proof that he doesn't earn enough to pay the higher rate - he doesn't even know what it is!!

kingofturds

iTrader: (1)

Do you pay tax on benefits

kingofturds

iTrader: (1)

In the next couple years i can see this all coming home to roost.People who have just taken out huge mortgages are struggling to repay them,And homeowners have taken out huge loans to buy fancy cars,holidays lulled into the false sense that their house is worth mega£ and the value is going to rise forever.
Then we have the fact that unemployment is rising and yet we are still allowing cheap foriegn labour in (whats wrong with the 2 million on the dole ffs). It al adds up to one big mess

Stueyb

Well kingofturds, I have to agree with you there. The money in the future will come from being in the debt management game. People are already starting to realise they have lived well beyond their means. Just look at places like moneysavingexperts debt free forums (http://forums.moneysavingexpert.com/...play.html?f=76) to see that people spend on the old credit cards, buying chelsea tractors etc to be seen to be having money and then one day they realise they can no longer afford it and start to panic.

Put another way, a 2% change in interest rates in the wrong direction could cause a lot of problems for people who are already on a knife edge.

Anyone want to start a debt collection company

Petem95

Thing is altough interest rates will start rising soon, theres also pressure from the continued rapid increases in utility bills, fuel, council tax. The pack of cards can only take so much surely?

What I find really worrying is that so many people just dont see the risks. They think 'ok Im just about able to pay my mortgage, but hey it'll be ok cos interest rates wont rise and house prices only ever increase right, so I can just keep borrowing against the house?'

Debt recovery will be the game to be in if you want to make it big in the next 5-10years.

kingofturds

iTrader: (1)

How do those companies work? dont they buy bad debts off banks for say %40 off the original debt and then try to reclaim it. sounds like a good idea

Although i do like to see these greedy ******* banks losing money, lending people obscene amounts of money,then pursuing some people to suicide when they cant pay.

Petem95

Yeah thats exactly how they work, and all the big banks are setting aside ever increasing amount to count ever-increasing bad debt, and they sell this bad debt onto debt recovery firms rather than writing it off completely. So the debt recovery firms say "we'll cut youre debt in 1/2" which sounds great to the consumer, and as the debt recovery firm has bought the debt at 40% of its total, they have a margin of 10% of the debt to make a profit out of.

Business must be booming for them.

Kyl3cook

I'm with you. Moving to Bahrain in September to get out of this Labour ruined country.

alcazar

iTrader: (2)

The economic castle of sand that Scottish Pension Thief Brown has built, is all going to come crashing down before long, and that's why he's DESPERATE to become PM asap.

His "credentials" for becoming PM are based on his being the best chencellor ever, and when it all comes down around his scruffy Scottish ears, what is his claim going to be worth?

Alcazar

Stueyb

Well i find it quite "interesting" to read the backs of the paper and these dodgy adverts for "gaurenteed 5 year debt free plan" aka an IVA, which is free from CCCS or Payplan but these cowboys charge at least a 10% fee. It makes my blood boil, but there will be reduced (not cheap) property prices soon

As for the 40% a lot of it is more like pennies in the pound

scoobynutta555

Just clicked the link and spent about 30 mins flicking through. Some sad stories on there. Was reading the thread by moozie, 32k in debt, overdrawn accounts and loans and loans. 10 quid per week spending money, and she even ended up losing that.

What I didnt see on the site is what do they spend their money on, but watching that Alvin Hall programme on tv the usual is going out/cars/holidays.

Must be loads of people like that around, spending banks money like water off a ducks back then facing 10 quid a week for 10 years.

Leslie

Somehow I dont think PSL is going to contribute to this thread. He won't have the bottle to tell us how we should be delighted to pay so much more tax, whether stealth or otherwise, so that we can subsidise all the grossly overburdening and useless bureaucracy put in place by this sorry imitation of a government and also all those unbelievable and obscene tax free allowances that MPs are entitled to these days. We have to keep the trough filled up for the pigs!

Les

Spoon

Yes and for these type of people there should be a 'As thick as fúck' tax!

Blaming the money lenders is one thing but taking resposibility for one's own actions appears to be a forgotten art.

_RIP_

Alcazar, these comments make you sound a small minded and xenophobic imo. Do you dislike all Scots? If not then why do you keep banging on about him being Scottish in every post you make? When you call him a scruffy Scottish thief you're making out that him being Scottish is an issue. We're not happy with him or bliar either I can tell you.

Petem95

There already is one - its called the Lottery

scoobynutta555

Met a woman once who said the only thing she lived for was cigarettes and the lottery

Spoon

Yes Pete, how true.

MikeCardiff

iTrader: (2)

I really think its about time some action was taken to stop banks and credit companies lending so freely.

A lot of the economic problems we know have are due to people being able to borrow too easily. Look at the tales of people in their early twenties who have tens of thousands of debt - I know there are exceptions, but most people under 25 dont earn enough to be leant the sort of money companies will give them.

I know a lot of fault lies with the borrowers, as our society seems to be getting more and more 'me, me, me' - people wont save, and wont accept that they cant have everything they want. There is a large sector of society that think they have to keep up with their friends ( who are also spending money they dont have ) with the cars, clothes, holidays etc... and will borrow as much as the companies will lend them and worry about it later.

Perhaps rather than a credit rating, lenders should carry out a basic intelligence test before OK'ing a loan or credit card !

As an extreme ( but not impossible if you remember the last recession ) scenario - imagine if the interest rate in 6-12 months time had gone up to 10% - how many people would lose their houses or find themselves in really serious trouble, most of it bought about by their own greed and lack of common sense ?

kingofturds

iTrader: (1)

Bring it on I cant wait till hopefully the house prices come down,I'm 24 and can at max get a mortgage of 100K which ATM will buy me a one bedroom flat and Due to my past experiences with women i dont think i will ever trust one enough to have a joint mortgage,so stuck renting which just seems a waste of money at the minute

OllyK

The government are now encouraging people at 18 to get in to 10's of thousands of pounds of debt under the illision that they'll graduate to people begging them to work for them for a massive salary and that they'll have the debt paid off in a couple of years.