Budget

[Wij]

Fair, sensible ?

 

[Tom]

In my view, yes.

 

[Embattle]

Well when everyone was banging Labour about the NI increase any one with half a brain knew something major would increase with/without a change in party, VAT seemed the most likely.

 

[Raven]

Yes that's but you have a choice to spend money rather than have it nicked before you even see it. Also, a fair amount will be paid by the retailer rather than the customer, like with when it was 15%, things were still at the 199.99, 299.99 price points for the most part.

 

[MrHorus]

I don't smoke, don't claim state benefits and drink moderately.

One thing I do like to drink is quality, premium cider like Addlestons.

Not too bad a budget for me

 

[MYstIC G]

From what I've seen of it so far, yes.

 

[rynnor]

Pretty painless - I thought I would get hit a lot harder but partly because we arent eligible for any state help we arent missing it going.

It will hurt those families earning a combined 40k ish though which isnt a lot down south.

Its good news for the in-laws and other country relatives - they are all on low pay so the tax changes will help them.

I think its important to remember that what we have seen today is only 23% of the cuts - we still havent seen the other 77% that will come in public spending cuts.

 

[Zenith.UK]

Not too bad for our household.
The increase in tax allowance will be offset by the VAT increase. The only issue I can see is child benefit being frozen at the same level for 3 years.

 

[Embattle]

Yes that's but you have a choice to spend money rather than have it nicked before you even see it. Also, a fair amount will be paid by the retailer rather than the customer, like with when it was 15%, things were still at the 199.99, 299.99 price points for the most part.

Like most things a certain amount of spin was put on the NI issue which didn't include that many people and wasn't effective until 2011 but what goes around comes around I guess so each government sticks the boot in as does the media.

I can assure you a lot of retailers won't take the hit at all, in the 15% reduction even the shops that did drop VAT in real terms actually pushed the price back up a few weeks later.

As for me it is a nothing budget in terms of my finances directly but the impact on the wider economy will be unknown for a while, although not sure it'll affect it massively.

 

[Scouse]

Fair and sensible in that we live in a totally unfair system, none of us were individually responsible for this mess and the rich people who were will not have to downgrade their yachts or private planes.

The poor, as always, will get shat on in the long run here.

 

[rynnor]

The Middle classes, as always, will get shat on in the long run here.

Fixed that for you for of course the bottom 25% are net gainers from taxation - its those in the middle that shoulder the burden of taxation.

 

[Turamber]

CGT rate change is a pain, but entrepreneur's relief will ease the problem.

Nasty budget for people on benefits, claiming housing benefit and tax credits though. Shame.

HM Revenue & Customs:Budget - 22 June 2010

 

[chipper]

wasnt as bad as i thought it would be think the benefit cuts is gonna affect alot of familys, dont forget not everyone on benefits is a lying thieving scumbag

 

[Scouse]

Fixed that for you for of course the bottom 25% are net gainers from taxation - its those in the middle that shoulder the burden of taxation.

If you consider 200 quid per annum a "gain" you need a better job

 

[rynnor]

If you consider 200 quid per annum a "gain" you need a better job

No I meant the existing status where the bottom 25% gain a few K each even after VAT etc.

 

[ECA]

Not happy about the VAT rise ( EU minimum is 15% which I think we should stick with ), but all things considered it was ok.

 

[Wij]

Fair and sensible in that we live in a totally unfair system, none of us were individually responsible for this mess and the rich people who were will not have to downgrade their yachts or private planes.

The poor, as always, will get shat on in the long run here.

Gordon Brown is not rich is he ?

(Not being facetious but we have a £77bn-ish structural defecit to reduce. That what this is meant to address. The bank bailout isn't counted in the structural defecit as it's a 'one-off' and is dwarfed by our overall debt-mountain.)

 

[Wij]

By my calculations you'd have to spend £7,990 on VAT'd goods per annum for it to offset the £170 per annum less tax you all pay. Double that amount for two income families.

 

[Scouse]

No I meant the existing status where the bottom 25% gain a few K each even after VAT etc.

You mean the increase in the personal tax allowance of 1000 quid which translates to about 175 quid a year? That'll get swallowed up by VAT almost instantly...

Nowhere in the budget did I see the bottom 25% gaining a "few K"...

 

[Ch3tan]

By my calculations you'd have to spend £7,990 on VAT'd goods per annum for it to offset the £170 per annum less tax you all pay. Double that amount for two income families.

You mean the increase in the personal tax allowance of 1000 quid which translates to about 175 quid a year? That'll get swallowed up by VAT almost instantly...

Nowhere in the budget did I see the bottom 25% gaining a "few K"...

Wij answered your point before you even made it.

 

[Wij]

You mean the increase in the personal tax allowance of 1000 quid which translates to about 175 quid a year? That'll get swallowed up by VAT almost instantly...

Nothing like instantly. See above.

 

[Scouse]

3 points - some to rebuff points some to restate points:

1) Your calculation was incorrect: Just 7 grand spend on VAT'd goods offsets 175 quid.

2) 7 grand a year on VAT'd goods isn't very much

3) 170 quid a year is a paltry tax break. Practically meaningless.


170 quid a year is hardly fucking worth it IMHO...

 

[Chilly]

vat should have been cut and income tax hiked a couple of points at the top end to pay for it. vat is an unfair tax and raising it seems daft.

It's my view that almost all tax should be income tax, corp tax and cgt. Other speciality taxes are needed for various things (maybe booze and fags, in the national interest?).

 

[Aoami]

wasnt as bad as i thought it would be think the benefit cuts is gonna affect alot of familys, dont forget not everyone on benefits is a lying thieving scumbag

indeed, gonna be a killer for my mum (single parent with 4 kids at home, works full time as a teacher, benefits really help her etc)

 

[old.user4556]

Seems good, like it, happy to know that we should be out of it in a few years.

Alas, my Scottish peers who know fuck all about fuck all bl33ted like fucking sheep to the tune of "HAH SEE, TOLD YE THA TORIES WOULD RAISE TAXES".

Fucking idiots.

 

[Embattle]

Seems good, like it, happy to know that we should be out of it in a few years.

Alas, my Scottish peers who know fuck all about fuck all bl33ted like fucking sheep to the tune of "HAH SEE, TOLD YE THA TORIES WOULD RAISE TAXES".

Fucking idiots.

Ideally yes, lets see though.

Technically they aren't wrong but then the same would of happeed under nearly any government.

 

[old.user4556]

Of course it would, but they're too fast to get onto their anti Tory high-horses.

 

[Marc]

Yes that's but you have a choice to spend money rather than have it nicked before you even see it. Also, a fair amount will be paid by the retailer rather than the customer, like with when it was 15%, things were still at the 199.99, 299.99 price points for the most part.

erm not really. Its the customer who gets the shit end of the stick. It makes no difference to the retailer at all, they just plonk the VAT on top of their normal selling price but unless the customer is a business, its extra cost to them. Joe Public take the hit.

 

[Wij]

3 points - some to rebuff points some to restate points:

1) Your calculation was incorrect: Just 7 grand spend on VAT'd goods offsets 175 quid.

2) 7 grand a year on VAT'd goods isn't very much

3) 170 quid a year is a paltry tax break. Practically meaningless.


170 quid a year is hardly fucking worth it IMHO...

1.) um - nope

If the VAT hike meant everything got 2.5% more expensive then you would be correct.

175 * (1 / 0.025) = 7000

But that isn't how VAT works.

2.) Not to you maybe but you aren't poor. Remember mortgage/rent isn't VAT'd. Neither is food or kids clothes. Gas is VAT'd at a different rate which isn't being upped.

3.) By that logic then the VAT increase is also fuck all

 

[Wij]

Of course it would, but they're too fast to get onto their anti Tory high-horses.

Yes it would. Nobody mentions the fact that Labour had been mulling a VAT increase themselves. Google it.