You answered your own rhetorical question. Youre right, the economy has grown considerably and one of the reasons why and a reason why unemployment is at historical lows is that companies pay less tax, that means more staff, less unemployment benefits, it means more businesses which means increasing economic output, investment by business, which in turn leads to increased VAT receipts. There is no question that if every business was charged 26p next week instead of 19p this week, then next week that would earn more money than this week, but it is also wrong to believe that the effects very quickly would not be a retraction in the economy, with less growth and less spending/less secondary VAT, less new business and certainly less foreign business which in turn effects growth, employment and tax receipts. You cannot take a 7p in the £ loss of profitability/tax hike in isolation. It has far reaching effects to business profitability which greatly affects the overall economy.
You cant set tax rates based on other countries, only on what will bring the best balance of growth and tax receipts in the UK
The reason why 19p brings in more now than 26p is because you are right, the economy has grown, but it will retract at 26p and it doesnt take a rocket scientist to see if it retracts to similar levels of a few years ago it will have the same result.
If economic output is £200 and tax is 26p thats £52 to the treasury, if its dropped in phases to 19p and the consequence is growth in output to £300 that's now £57.... but if we put it to 26p with output of £300 that would mean £78yes tomorrow it would, but very soon output will again be £200 and youll be back to £52. That in simplistic terms is the reality, decreasing taxes increases growth, increasing taxes decreases growth. Thats the same the world over and less spending equals less VAT, Hollande made the same mistake as do all socialists.
They look like a fine example of young and politically incompetent to me. Hopefully, they're not typical of younger voters...........
Been there, done it, some years ago.
If that's a pre-requisite for voting or an indication of political awareness, heaven help us all!
Been there, done that too.
Done that too - and re: the present conditions, why would be not be fully aware of them, given that we are doing our best to help our children get over that difficult first hurdle?
See answer about budgeting for first home. Bank of Mum and Dad anyone? Some parents can't or won't help their children, but there are many of us doing the best we can, even if we're not rolling in money sufficiently to pay the deposit for them out of our pension!
True. But, large numbers of older voters didn't vote for any of those conflicts, or agree with us getting involved in them. And we are very sorry for every poor young person who has had their life ruined or ended in a horrible way. But it also has to be noted that they were all volunteers - it was a very different story for our fathers or grandfathers who risked, and in many cases laid down, their lives in the 1940s and 50s.
You answered your own rhetorical question. Youre right, the economy has grown considerably and one of the reasons why and a reason why unemployment is at historical lows is that companies pay less tax, that means more staff, less unemployment benefits, it means more businesses which means increasing economic output, investment by business, which in turn leads to increased VAT receipts. There is no question that if every business was charged 26p next week instead of 19p this week, then next week that would earn more money than this week, but it is also wrong to believe that the effects very quickly would not be a retraction in the economy, with less growth and less spending/less secondary VAT, less new business and certainly less foreign business which in turn effects growth, employment and tax receipts. You cannot take a 7p in the £ loss of profitability/tax hike in isolation. It has far reaching effects to business profitability which greatly affects the overall economy.
You cant set tax rates based on other countries, only on what will bring the best balance of growth and tax receipts in the UK
The reason why 19p brings in more now than 26p is because you are right, the economy has grown, but it will retract at 26p and it doesnt take a rocket scientist to see if it retracts to similar levels of a few years ago it will have the same result.
If economic output is £200 and tax is 26p thats £52 to the treasury, if its dropped in phases to 19p and the consequence is growth in output to £300 that's now £57.... but if we put it to 26p with output of £300 that would mean £78
