13% inflation

[DealorNoDeal]

There's no need to worry, Liz Truss says recession is avoidable.

[SueEllen]

There's no need to worry, Liz Truss says recession is avoidable.

Tax cuts for everyone.


She's economically a

[Zigenare]

Tax cuts for everyone.


She's economically a

Ok clever clogs, how would *you* fix the current cost of living crisis?

Please factor in the members of the population who used to be able to keep their heads above water and have now had their energy bills nearly tripled and their road fuel costs almost doubled.

[WTFH]

Ok clever clogs, how would *you* fix the current cost of living crisis?

Please factor in the members of the population who used to be able to keep their heads above water and have now had their energy bills nearly tripled and their road fuel costs almost doubled.

Easy, look at where the wealthy dump their cash, and tax it...
Tax pension funds, tax dividends, tax off-shore earnings.

And no, the businesses will not all shut up shop and leave the UK. Remember, they need us more than we need them, or so we were told.

Because either we are a tax haven for the wealthy where the poor suffer, or we are a civilised society that taxes fairly.

[SueEllen]

Ok clever clogs, how would *you* fix the current cost of living crisis?

Please factor in the members of the population who used to be able to keep their heads above water and have now had their energy bills nearly tripled and their road fuel costs almost doubled.

For the last few days I've been listening to economic experts - all say you don't do tax cuts now otherwise you make inflation worse as the factors causing inflation are not within the UK control. The argument is about the BoE mandate over interest rates.

Also when taxes are cut they are cut for the wealthiest members of society, and trickle down economics has been shown not to work.

[hugebrain]

Ok clever clogs, how would *you* fix the current cost of living crisis?

They could consider not printing loads of money and handing it out to their wealthy friends. Or is that idea too revolutionary?

[malvolio]

For the last few days I've been listening to economic experts - all say you don't do tax cuts now otherwise you make inflation worse as the factors causing inflation are not within the UK control. The argument is about the BoE mandate over interest rates.

Also when taxes are cut they are cut for the wealthiest members of society, and trickle down economics has been shown not to work.

Banging on about the rich gaining a tax advantage is faintly ridiculous. They are about 2% of the population. If they are encouraged to invest they may actually increase national income. They are good at making money, it's why they are rich in the first place.

That's perhaps why Truss is talking about VAT reductions and cancellation of egregious existing or planned taxes such as the NI uplift and green levies aimed at paying for an unachievable goal. Putting more disposable income in people's pockets is not inflationary and might actually increase tax revenues indirectly. What it will achieve is to ease the burden on the lower paid who are struggling with the constant increase is basic living costs.

Similarly putting up CT would only mean an exit of non-national companies to more profitable countries, while leaving it alone and stable, or even reducing it slightly will encourage inward investment.

What is fairly certain is that doing a Sunak and continuing the status quo for a few more years is not going to help anything - after all, it's largely why we are in this mess in the first place.

[WTFH]

Banging on about the rich gaining a tax advantage is faintly ridiculous. They are about 2% of the population. If they are encouraged to invest they may actually increase national income. They are good at making money, it's why they are rich in the first place.

That's perhaps why Truss is talking about VAT reductions and cancellation of egregious existing or planned taxes such as the NI uplift and green levies aimed at paying for an unachievable goal. Putting more disposable income in people's pockets is not inflationary and might actually increase tax revenues indirectly. What it will achieve is to ease the burden on the lower paid who are struggling with the constant increase is basic living costs.

Similarly putting up CT would only mean an exit of non-national companies to more profitable countries, while leaving it alone and stable, or even reducing it slightly will encourage inward investment.

What is fairly certain is that doing a Sunak and continuing the status quo for a few more years is not going to help anything - after all, it's largely why we are in this mess in the first place.

Banging on about VAT reduction as if that will put money into the poorest pockets is typical of Tory policy. Inflation in double digits will not be offset by a 1% or 5% reduction in VAT.

Let's look at the most important things in life - food & drink.
What is the VAT on meat?
What is the VAT on fruit & veg?
What is the VAT on cereals & pulses?
What is the VAT on culinary herbs?
What is the VAT on canned/frozen food (excluding ice cream)?
What is the VAT on milk?
What is the VAT on tea?
What is the VAT on coffee?

How will reducing VAT help people trying to have food on their plates?

[malvolio]

Banging on about VAT reduction as if that will put money into the poorest pockets is typical of Tory policy. Inflation in double digits will not be offset by a 1% or 5% reduction in VAT.

Let's look at the most important things in life - food & drink.
What is the VAT on meat?
What is the VAT on fruit & veg?
What is the VAT on cereals & pulses?
What is the VAT on culinary herbs?
What is the VAT on canned/frozen food (excluding ice cream)?
What is the VAT on milk?
What is the VAT on tea?
What is the VAT on coffee?

How will reducing VAT help people trying to have food on their plates?

That's actually a list of one item, in this context...

Yes, I do actually understand that list; I'm not on an infinite income myself. But it does ease the burden on other stuff people buy that isn't food (including the takeaways/Deliveroos many of the lower paid seem to live on) and other living costs such as fuel (how much of a litre of petrol or 1 KWh is VAT?), and it is a positive comfort factor. If it encourages commerce then it is a positive. If it encourages more borrow-to-buy spending then it is at best neutral, but possibly slightly inflationary. Overall I believe it is a good thing. YMMV (and if you do, try a more relevant argument!).

[Zigenare]

For the last few days I've been listening to economic experts - all say you don't do tax cuts now otherwise you make inflation worse as the factors causing inflation are not within the UK control. The argument is about the BoE mandate over interest rates.

Also when taxes are cut they are cut for the wealthiest members of society, and trickle down economics has been shown not to work.

Thought not.