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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
TWGL1
UK announces getting rid of the 45% tax rate that will cost £2.4bn next year - IMF intervenes and markets in meltdown.
UK pledges more than £2.4bn to Ukraine and no market response
Same outcome - £2.4bn cost to UK taxpayer
https://twitter.com/statsjamie/statu...NQi6VqYfUZUNjg
Seems a bit of a strawman. Most of the media coverage I have seen has been going out of their way to say that whilst the 45% announcement is political dynamite, it doesn't amount to enough money to influence anything on its own.
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
A Quiet Monkfish
"spooked" ? Or an opportunity to make some significant short-term financial gains under the cloak of bad politics ?
There's always an opportunity to make money
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
A Quiet Monkfish
"spooked" ? Or an opportunity to make some significant short-term financial gains under the cloak of bad politics ?
Meanwhile my pension pot has shrunk by over £10K in a week. Thanks Kwarsi.
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
Gofer Blue
Meanwhile my pension pot has shrunk by over £10K in a week. Thanks Kwarsi.
I hope you have decided not to vote Tory from now on ?
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
TWGL1
UK announces getting rid of the 45% tax rate that will cost £2.4bn next year - IMF intervenes and markets in meltdown.
UK pledges more than £2.4bn to Ukraine and no market response
Same outcome - £2.4bn cost to UK taxpayer
https://twitter.com/statsjamie/statu...NQi6VqYfUZUNjg
He's clearly a tory and so are you if you believe what he's saying
It's not just the tax rate issue that has caused the markets to react 🙄
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
Gofer Blue
Meanwhile my pension pot has shrunk by over £10K in a week. Thanks Kwarsi.
Has your pension provider sold the funds, or is this just a fall in current market values? The only time a valuation is important is when you convert your pension funds into income. If you've not done that, then there is always time to recover.
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
SLUDGE FACTORY
He's clearly a tory and so are you if you believe what he's saying
It's not just the tax rate issue that has caused the markets to react ��
Sludge
The primary reason the markets have reacted is that fiscal policy and monetary policy are at odds, and the OBR has yet to provide an updated forecast.
you'll be aware that as of this morning, almost all losses incurred in the past week have been recovered. Typical city boys playing fast and loose with politics to make a killing. This is not new.
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
DryCleaning
Sludge
The primary reason the markets have reacted is that fiscal policy and monetary policy are at odds, and the OBR has yet to provide an updated forecast.
you'll be aware that as of this morning, almost all losses incurred in the past week have been recovered. Typical city boys playing fast and loose with politics to make a killing. This is not new.
The IMF rapping a Tory Government's financial approach and the Bank of England having to intervene to prevent a run on pension funds is though.
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
How did so many Tory tw@ts vote for Truss.?
Incredible.
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
SLUDGE FACTORY
He's clearly a tory and so are you if you believe what he's saying
It's not just the tax rate issue that has caused the markets to react 🙄
The pound has bounced back to pre - announcement levels.
If the tax cut gets the economy moving, which raises overall wealth for ALL Brits. Why are people bothered how wealthy somebody else is? Smacks of jealousy, unless i'm being simplistic.
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
the other bob wilson
The IMF rapping a Tory Government's financial approach and the Bank of England having to intervene to prevent a run on pension funds is though.
Why does it matter if gilts fall in value, other than if the holder is selling? Lower priced assets make the gilt more attractive to those taking a long position. The BoE buying back gilts in the way they did was to get them on the cheap. Whilst the BoE is nominally independent of political influence, its still the government's banker and has to act in its best interests.
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
DryCleaning
Why does it matter if gilts fall in value, other than if the holder is selling? Lower priced assets make the gilt more attractive to those taking a long position. The BoE buying back gilts in the way they did was to get them on the cheap. Whilst the BoE is nominally independent of political influence, its still the government's banker and has to act in its best interests.
You don’t seem to get it, you’re trying to make it sound like the week which started on last Friday morning was just business as usual - clearly,it wasn’t.
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
HyperboreanCCFC
The pound has bounced back to pre - announcement levels.
If the tax cut gets the economy moving, which raises overall wealth for ALL Brits. Why are people bothered how wealthy somebody else is? Smacks of jealousy, unless i'm being simplistic.
Is there any evidence that tax cuts boost economic output?
Surely a better approach would have extended the capital allowances super deduction. Businesses need to reinvest profits to improve UK Plc productivity, and we've seen significant improvement in investment in the past two years. Why not keep that going, which lowers long term costs and improves profitability and productivity, along with future Corp tax, VAT and PAYE receipts?
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
the other bob wilson
You don’t seem to get it, you’re trying to make it sound like the week which started on last Friday morning was just business as usual - clearly,it wasn’t.
Thanks for being condescending. I'm pretty sure I know the markets better than you bob, how they work and how short and long positions often conflict.
The markets have returned to as they were pre mini budget. The funds who were taken by surprise with the tax cuts offloaded their assets whereas those who had taken time to digest have now acquired cheaper assets. The losers are the funds that were caught hopping and the winners are the funds that saw an opportunity.
It happens every day in the markets - this time the underlying cause were political however tomorrow it could be a drought in Kenya.
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
HyperboreanCCFC
The pound has bounced back to pre - announcement levels.
If the tax cut gets the economy moving, which raises overall wealth for ALL Brits. Why are people bothered how wealthy somebody else is? Smacks of jealousy, unless i'm being simplistic.
Nothing of the sort, it's basic morality. Yes you're being simplistic.
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
HyperboreanCCFC
The pound has bounced back to pre - announcement levels.
If the tax cut gets the economy moving, which raises overall wealth for ALL Brits. Why are people bothered how wealthy somebody else is? Smacks of jealousy, unless i'm being simplistic.
😂😂😂😂😂😂
Bonkers.
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
HyperboreanCCFC
The pound has bounced back to pre - announcement levels.
If the tax cut gets the economy moving, which raises overall wealth for ALL Brits. Why are people bothered how wealthy somebody else is? Smacks of jealousy, unless i'm being simplistic.
The simple answer is because taxation pays for vital services. If people get wealthy adding value then more power to them. I think business investment more often than not hinges on a decent education system, a stable economy, a healthy workforce. The current government believe it depends solely on low taxation and will try to convince you to think the same.
Out of interest, did you need to be given any evidence that tax cuts inherently cause growth before you decided to support the budget that wasn't a budget?
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
Eric Cartman
The simple answer is because taxation pays for vital services. If people get wealthy adding value then more power to them. I think business investment more often than not hinges on a decent education system, a stable economy, a healthy workforce. The current government believe it depends solely on low taxation and will try to convince you to think the same.
Out of interest, did you need to be given any evidence that tax cuts inherently cause growth before you decided to support the budget that wasn't a budget?
Im stunned you actually responded to such a ridiculous post. We are all going to be more wealthy. FFS. 😂😂😂
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
Eric Cartman
The simple answer is because taxation pays for vital services. If people get wealthy adding value then more power to them. I think business investment more often than not hinges on a decent education system, a stable economy, a healthy workforce. The current government believe it depends solely on low taxation and will try to convince you to think the same.
Out of interest, did you need to be given any evidence that tax cuts inherently cause growth before you decided to support the budget that wasn't a budget?
Look, I think the way the budget was presented was wrong, and I think the 45% top rate scrapping is wrong..
But..
It's only a few short months since the UK took the tax burden to "1940's levels"
https://inews.co.uk/news/spring-stat...eaways-1535611
https://www.thetimes.co.uk/article/b...ears-qsrx0wxxw
and opposition MP's were criticising tax rises
https://www.bbc.co.uk/news/uk-politics-60189393
Maybe these reforms will work?
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
JamesWales
Jimbo, how many times do you have to be told TRICKLE DOWN DOES NOT WORK.
(Still waiting for the apology.)
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
JamesWales
You are happy with 'maybe' being the basis for government policy? Shall we just throw darts at a list of mental ideas?
This is a right wing experiment and we are their lab rats.
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
HyperboreanCCFC
The pound has bounced back to pre - announcement levels.
If the tax cut gets the economy moving, which raises overall wealth for ALL Brits. Why are people bothered how wealthy somebody else is? Smacks of jealousy, unless i'm being simplistic.
You are simple
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Fact .The highest earning 1% in the UK pay an estimated 28% of all income tax – not the total “tax burden”. This is close to a record level.
I think the budget move is to motivate those big earners to stay as they are usually business people who provide growth and jobs.
I think the missing bit of the tax stimulus was those in the middle incomes I'd brought thier tax down from 40 % to 38% . and gave lower earners a 2% cut or raised threshold to 15000 before tax kicks in .
Don't forget lower paid workers up to the 39k were already taken out of the NI rise.
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
life on mars
Fact .The highest earning 1% in the UK pay an estimated 28% of all income tax – not the total “tax burden”. This is close to a record level.
I think the budget move is to motivate those big earners to stay as they are usually business people who provide growth and jobs.
I think the missing bit of the tax stimulus was those in the middle incomes I'd brought thier tax down from 40 % to 38% . and gave lower earners a 2% cut or raised threshold to 15000 before tax kicks in .
Don't forget lower paid workers up to the 39k were already taken out of the NI rise.
You don't understand the fundamentals of the THEORY on how trickle down economics works. Giving tax cuts to lower or middle earners has no effect in the theory.
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Re: Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April
Quote:
Originally Posted by
az city
You don't understand the fundamentals of the THEORY on how trickle down economics works. Giving tax cuts to lower or middle earners has no effect in the theory.
Its a theory Adz, just like all of economics. You can read too many books.
