Spring budget - what tax to cut?

[sreed]

Ignoring the other (more difficult) part of the equation - cutting spending, what tax/es would you like cut in the spring budget.

For me, payroll NI is a terrible tax that hides the actual burden of taxes on employed PAYE income (which is the vast majority of how working Brits get paid) and allows the govt to conceal the real tax burden on employment. The sooner Employee’s NI gets merged into the income tax rate, the better. So any cut in this is a huge positive in my book. In effect Employer’s NI is also paid by the employee (in the form of a lower salary) but the political argument to cut that is likely impossible to make as it won’t make a pretty Daily Mail headline that its readers would be able to comprehend.

My second candidate is stamp duty on property purchases, at the very least for owner occupiers. It should either be eliminated or reduced to one small flat rate (no more than 1-2%) on all transactions. It doesn’t bring in a lot of money (relatively) but plays an oversized part in gumming up the property market due to its dependence on existing housing stock and chains. It also impedes labour mobility imho.

[ladymuck]

Cut the duty on gin.

[malvolio]

Ignoring the other (more difficult) part of the equation - cutting spending, what tax/es would you like cut in the spring budget.

For me, payroll NI is a terrible tax that hides the actual burden of taxes on employed PAYE income (which is the vast majority of how working Brits get paid) and allows the govt to conceal the real tax burden on employment. The sooner Employee’s NI gets merged into the income tax rate, the better. So any cut in this is a huge positive in my book. In effect Employer’s NI is also paid by the employee (in the form of a lower salary) but the political argument to cut that is likely impossible to make as it won’t make a pretty Daily Mail headline that its readers would be able to comprehend.

My second candidate is stamp duty on property purchases, at the very least for owner occupiers. It should either be eliminated or reduced to one small flat rate (no more than 1-2%) on all transactions. It doesn’t bring in a lot of money (relatively) but plays an oversized part in gumming up the property market due to its dependence on existing housing stock and chains. It also impedes labour mobility imho.

NICs is a non-starter. What government will increase the baseline tax level by 20% or so, which is what that would imply? "Mail readers" is a lazy trope, incidentally, it's not like "Guardian readers" are a bastion of common sense and reality. Any radical change in taxation would be noticed by everyone...

Stamp duty I agree with. It has long outlasted its usefulness. At a minimum the threshold could go up to £2m or so, which would not harm the regular market in the slightest.

but sadly is seems Hunt is still listening to the OBR and their utterly pessimistic and usually wrong forecasting, While we need something big to persuade us his party is serious, we're going to get piddling about with rates and a tax on vapes. Woo f***ing hoo.

[sreed]

NICs is a non-starter. What government will increase the baseline tax level by 20% or so, which is what that would imply? "Mail readers" is a lazy trope, incidentally, it's not like "Guardian readers" are a bastion of common sense and reality. Any radical change in taxation would be noticed by everyone...

Stamp duty I agree with. It has long outlasted its usefulness. At a minimum the threshold could go up to £2m or so, which would not harm the regular market in the slightest.

but sadly is seems Hunt is still listening to the OBR and their utterly pessimistic and usually wrong forecasting, While we need something big to persuade us his party is serious, we're going to get piddling about with rates and a tax on vapes. Woo f***ing hoo.

I agree with the gist of your post on NICs. As I mentioned, I don't think its politically viable to tinker with employer NICs as it's (wrongly) seen as paid by Big Business rather than the 'hard-working common man' so to speak. But a reduction in employee NICs is definitely a step in the right direction.

"Mail readers" might be a lazy trope in your opinion, that's fair enough. But as far as the current government is concerned, that's front and centre of the section of the electorate they're aiming to pander to and keep on side, not the folk that read the Grauniad or the Daily Socialist. For obvious reasons, this from Oct 2023!

[DoctorStrangelove]

Ah, the dear dead days beyond recall when std rate income tax was 33% and NI was 5%.

So different from now.

[vetran]

Wages have gone up significantly.

What we need to do is build financial activity. Build houses, reform the Police & NHS etc.

[SueEllen]

Cut the duty on gin.

So policies to stop pubs from closing?

Unfortunately drinkers are people over 35 so it's a declining market as the closure of night clubs around the country has shown.

[ladymuck]

So policies to stop pubs from closing?

Unfortunately drinkers are people over 35 so it's a declining market as the closure of night clubs around the country has shown.

Yeah, youngsters are right boring. Although my nephew does well in getting blotto on occasion so maybe not all hope is lost.

[vetran]

Yeah, youngsters are right boring. Although my nephew does well in getting blotto on occasion so maybe not all hope is lost.

ooh an Aunty to get off your face with!

[Snooky]

"Mail readers" is a lazy trope, incidentally, it's not like "Guardian readers" are a bastion of common sense and reality

Spot the person with a Daily Mail subscription