The economics is interesting isn't it
Taxes currently ~37% GDP. For context, Major ~29% and Blair ~33%. Taxes are massively high. Raised to cover the cost of furlough. We don't have furlough any more.
Truss tried to reduce that by ~1.8% GDP. And pledged ~170bn /6% GDP for energy cap. 1.72% for the cut to basic rate and 0.08% for the higher rate. Press focused on the 0.08% while markets focused on the 1.72% cuts and 6% extra spending.
So now we keep the ~37% GDP taxes and implement a minimal energy cap.
The thing is, 37% taxes is way too high. The difference between Major and Blair taxes above Blair. So the reversal of cuts has led to predictions of a deeper recession.
If you were dictator, what would you do?
Windfall tax on energy companies will raise circa £5bn. 0.2% GDP
Raise taxes on bankers? The 45-40% cut was 0.08% GDP. Increase it too far and you lose income due to fewer banks/bankers
Cut taxes for basic rate earners? That is what truss did...
Posted By: Timmy_Goat on October 17th 2022 at 12:25:39
Message Thread
- Energy price guarantee now lasting until April (General Chat) - jamesward, Oct 17, 11:06:13
- That was the only thing she had to bang on about at PMQs last week.. that it was 2yrs (General Chat) - JD3, Oct 17, 11:39:28
- The SNP are on course to be the opposition in Parliament (n/m) (General Chat) - SCC 28, Oct 17, 11:40:35
- Everything from mini budget ditched apart from NI cut and stamp duty (General Chat) - jamesward, Oct 17, 11:13:56
- I can still the nation at the voting booths going (General Chat) - Lentil Weaver, Oct 17, 12:48:39
- Probably be a good election to lose tbh (General Chat) - jamesward, Oct 17, 13:06:19
- the ingenuity of man knows no bounds (General Chat) - ghostof barry butler, Oct 17, 13:32:07
- Maybe not, but they might have had some say in making it happen (n/m) (General Chat) - APB, Oct 17, 14:31:52
- i think its happening (General Chat) - ghostof barry butler, Oct 17, 15:00:01
- Maybe not, but they might have had some say in making it happen (n/m) (General Chat) - APB, Oct 17, 14:31:52
- the ingenuity of man knows no bounds (General Chat) - ghostof barry butler, Oct 17, 13:32:07
- Probably be a good election to lose tbh (General Chat) - jamesward, Oct 17, 13:06:19
- The economics is interesting isn't it (General Chat) - Timmy_Goat, Oct 17, 12:25:39
- Sooner or later, either the economy grows (General Chat) - paulg, Oct 17, 13:40:07
- I agree (General Chat) - Timmy_Goat, Oct 17, 17:37:04
- saying the tx % is way too high is a political choice (General Chat) - CWC, Oct 17, 12:58:48
- Many of whom seem to score higher than us on a variety of quality of life/happiness metric (General Chat) - CB41, Oct 17, 13:37:08
- My base (n/m) (General Chat) - Legacy Fan, Oct 17, 13:09:35
- Try again. My baseline for this is essentially that tax levels are fine if you can see (General Chat) - Legacy Fan, Oct 17, 13:12:26
- It's more the politics that are interesting than the economics (General Chat) - Under soil heating, Oct 17, 12:50:42
- The high taxes are due to many things, not only furlough. However, they don't like to (General Chat) - Legacy Fan, Oct 17, 12:47:38
- If I was going to change anything about the basic rate of income tax (General Chat) - jamesward, Oct 17, 12:33:33
- It doesn’t help high earners (General Chat) - SimonOTBC, Oct 17, 13:07:50
- Well they don't need help so that's OK (n/m) (General Chat) - Legacy Fan, Oct 17, 13:12:52
- Didn't know that (General Chat) - jamesward, Oct 17, 13:09:52
- £125k (General Chat) - CWC, Oct 17, 13:25:05
- Yeah, it means 60% tax plus NI on every £ over £100k (General Chat) - SimonOTBC, Oct 17, 14:30:55
- No-one *needs* to earn more than £100k a year (General Chat) - jamesward, Oct 17, 14:45:52
- That’s not really relevant, is it? (General Chat) - SimonOTBC, Oct 17, 14:54:54
- CTC kicks in at £50k so his figures seem suspect (n/m) (General Chat) - CWC, Oct 17, 14:39:38
- What do you mean? (n/m) (General Chat) - SimonOTBC, Oct 17, 14:45:55
- might have misread (General Chat) - CWC, Oct 17, 15:12:14
- What do you mean? (n/m) (General Chat) - SimonOTBC, Oct 17, 14:45:55
- No-one *needs* to earn more than £100k a year (General Chat) - jamesward, Oct 17, 14:45:52
- Yeah, it means 60% tax plus NI on every £ over £100k (General Chat) - SimonOTBC, Oct 17, 14:30:55
- £125k (General Chat) - CWC, Oct 17, 13:25:05
- Agree. Increase the personal allowance. (n/m) (General Chat) - Legacy Fan, Oct 17, 12:50:16
- It doesn’t help high earners (General Chat) - SimonOTBC, Oct 17, 13:07:50
- Sooner or later, either the economy grows (General Chat) - paulg, Oct 17, 13:40:07
- ha ha ha (n/m) (General Chat) - ghostof barry butler, Oct 17, 11:29:49
- Hunt is part of the anti growth coalition (n/m) (General Chat) - SCC 28, Oct 17, 11:16:53
- Lolz (n/m) (General Chat) - Augustus Pablo, Oct 17, 11:21:58
- She's surely gone (n/m) (General Chat) - jamesward, Oct 17, 11:19:19
- Untenable (General Chat) - CWC, Oct 17, 11:34:11
- Nothing is untenable these days. Idiots lap it up. Turkeys don't only celebrate (General Chat) - Legacy Fan, Oct 17, 12:49:27
- Just about when she resigns now (General Chat) - SCC 28, Oct 17, 11:21:58
- Can she still command £100k+ a time on "the US lecture circuit"?! (n/m) (General Chat) - JD3, Oct 17, 11:38:23
- How disgusting is that? Nauseating. 🤮🤢 (n/m) (General Chat) - protheroe fitzgibbon, Oct 17, 11:49:11
- Who would pay 100p to hear her speak? Let alone 100k. (n/m) (General Chat) - Pixelman, Oct 17, 11:40:01
- Probably not even her Lib Dem parents (n/m) (General Chat) - jamesward, Oct 17, 11:41:50
- The Tory Corbyn (General Chat) - Old Git, Oct 17, 11:25:07
- The MPs did put her into the final 2 tbf (General Chat) - SCC 28, Oct 17, 11:29:07
- Can she still command £100k+ a time on "the US lecture circuit"?! (n/m) (General Chat) - JD3, Oct 17, 11:38:23
- Untenable (General Chat) - CWC, Oct 17, 11:34:11
- I can still the nation at the voting booths going (General Chat) - Lentil Weaver, Oct 17, 12:48:39
- That was the only thing she had to bang on about at PMQs last week.. that it was 2yrs (General Chat) - JD3, Oct 17, 11:39:28
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