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Hi ChrisI think we're talking about very similar things from a similar point of view. but using different analogies and text that is confusing each other.NI increases are not OK, they're just a way of promising 'we won't increase income tax rates' and then increasing the other income, but not called income, tax we all pay; NI.  Don't remember who introduced the idea, but believe it might have been the scotsman who also sold all our gold reserves because he'd stopped boom and bust cycles.Mansion tax is an example of a proposal for a new tax that would be paid by a few, but was supported my the vast majority.  It was planned as 1% of house value per year, hence £30k a year for a reasonably nice house.  House value would of course have instantly crashed to just below the mansion tax level, so no revenue would have been raised.On overall tax take you need to consider all forms of tax income.  Stamp-duty and various other taxes make a heck of a difference to the revenue take. Average time between buying and selling a home I believe is in the region of 5 to 8 years, so stamp duty is something people pay time and again, with perhaps 20% of home owners paying it in any one year.Slower growth due to uncertainty and unwillingness to invest, plus the fist signs of quantitative easing inflation showing up.Agree deficit is being closed, if I were a synic I'd suggest that many Conservative governments spent their term in office sorting out the economic imprudence of the previous Labour one, which leads to the Labour opposition shouting about cutting this that and the other, getting voted back in and then spending money they don't have again.

Lorne Gifford ● 2628d

Hi LorneAt the end of the day, we need to balance tax and spend, while growing ourselves to a more prosperous future. My fear is that tax and spend is now too low.If NI is another kind of income tax why is NI increase ok but income tax not?"favoured by those that wont pay it" is just not true. They do pay it, the numbers I sent show they pay it, and they pay a lot more than anyone else, and I am grateful that they pay it. Where does your assertion come from? the numbers do not bear it out, so I do not know where this is coming from?Cutting tax to to pay for services does not work either. Talking about the Mansion tax is odd. I was talking income tax. 1p in income tax would mean your income must be £3 million a year to pay £30k more tax a year, which means parking fees are not a big problem. I did not say Brazil was in the "same basket", but they are a country, and we have have a similar tax take to them, lower than most 1st world countries. Less tax means fewer universal services, which means less help for the poor and disadvantaged, and more income for the rich. How little do we want to help each other?Reducing funding for public services means reduced funding for public salaries, which is a major cause of economic drag.Stamp duty only affect house buyers and so only affect a tiny number of people in any given year and are so cyclical. That is one of the worst ways to tax anyone. It encourages geographic inertia and distorts the housing market. So this suggestion is, I submit, a very poor one.Bexit devalued our currency, and yet the extra competitiveness this should have imparted to has has resulted in ever slower growth. The balance of tax has moved to the point where ever more squeezing of tax and public spending is damaging. The classic Keynsian spend your way out of a recession was not possible 10 years ago due to the huge Labour deficit, but the deficit has been mostly closed, and I think taxes have been cut too far.Food for thought.ThanksChris

Christopher Gillie ● 2628d

Sorry Chris, couple more points.  Not having a go at you incidentally as all opinions and thoughts are fully justified:- Your suggestion wouldn't be going back to an overall earn and tax profile we had 3 years ago, as we don't live with the same earn or spend profile. Just ask the millions in the squeezed middle that have seen stagnant income combined with rising prices.  WMH parking has gone up 33% this year, council tax has gone up 4%, and so on- If you're after a bigger tax take then why not freeze something like the kick-in values for stamp duty rates instead?  Or better still, why not make it a blanket 12% stamp duty on every house or flat (which is the rate currently paid by more expensive homes)?  You could happily argue that such a thing would raise billions for the exchequer and only take it from those that clearly have surplus income because they have enough money to buy a home.  Very persuasive and no doubt something that would be wholeheartedly favoured by anyone not planning on buying their own home or moving from where they are.  But what would that do to the housing market? And if the housing market suddenly stagnates or collapses, as it has done several times before, what does that do to stamp-duty revenue?- A 1% income rise in itself probably won't collapse the economy, but bear in mind that right now the UK economy is in a very fragile state. Incomes are not keeping up with price rises, brexit has devalued our currency by around 15% and will add considerably more cost and strain over the next few years, and the massive injection of cash that was quantitative easing is only just beginning to work through to increasing inflation.Overall, my thoughts are that the parking price rise at WMH is very annoying, particularly as I use that car park quite a lot, is inconsistent with surrounding parking charges, and is being pushed onto an almost captive customer base as an easy solution to make some extra cash.

Lorne Gifford ● 2628d

Hi LorneNI is just a tax, and is not hypothecated for the NHS, Pensions or anything else. Paying it does accrue pension entitlements, but your contributions are not saved up in order to fund it or anything else. It just goes into the big central pot.If you go to the ONS and download the statistics, 90% of income tax is paid by the top 50% (the number I think you are referring to), but to say the middle pays most of it is just not true. Middle income earners pay 22.6% of income tax. The top 5% of taxpayers pay almost half of all income tax. Looking it more closely:0 - 1%  - 0%0 - 5%  - 0.1%0 - 10% - 0.4%0 - 25% - 2.2%25%-50% - 7.7%50%-75% - 14.9%Top 25% - 75.6% Top 10% - 59.7%Top 5%  - 48.4%Top 1%  - 27.9%One penny more income tax for someone on £45k is about £330 a year.The changes to personal allowance from 10k to 11.85k have been a £370 tax cut.Just changing your bank account can easily earn you the cost of 1p on income tax. I am asking to go back to a tax take we had about 3 years ago, and freezing the increase in personal allowances. Your assertion that tax will collapse the economy is not true. Extremely high tax will do that (nobody can be bothered to work), as will extremely low tax (we would not be able to afford to even run the basics like defence and police). One penny will not make any difference, and I cannot understand why you think NI is ok but income tax is not. They are basically the same thing.Our tax as % of GDP is already very low. If you go to this list - https://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_to_GDP_ratio and sort by %, look at the countries at the top and at the bottom.Developed economies with high standards of living tend to be at the top of the list.It is true there are outliers like Switzerland and the USA, but the USA has almost no tax funded healthcare, and that costs them about 15% of GDP so that would put them at about 41%, more like Canada, and the Swiss are a tax haven with lots of millionaires, artificially distorting their numbers.The UK is at 34.4%, the same as Brazil. (Also next to Australia, which has had a China exports commodity boom for the last 2 decades so is not really comparable).

Christopher Gillie ● 2628d