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Post by Baron von Lotsov on Oct 29, 2022 13:08:46 GMT
If you cut things like VAT, fuel duty, alcohol duties, you actually get more revenues due to increased sales. When VAT was reduced to 15% to stimulate growth (the lowest EU rules allowed us to), it stimulated the economy. Cut alcohol duties and help hospitality. Pubs across the UK are on their knees with energy prices, high rents, high duties and Sky subscription costs. Force Sky to give them a better deal. Cut their energy taxes, cut the cost of a pint, customers will buy more. Increased sales, higher tax revenues. The economy will stagnate if the public have to practice austerity. You get todays's Liz Truss School of Economics Prize. Sadly for you it's a fools gold plated steaming turd Just cutting taxes over and over (and worse your 'force them' ideas) and all you get is short term GDP growth from sales of imported TVs etc. Actual growth of the UK productive sectors gets crippled by the high interest rates, inflation and instability it produces. Listen to Gerald Lyons.
Points made:
1) Reducing corporation tax is non-inflationary (my reasoning here: it means it can boost corporate investment and increase supply and increasing supply is a downward force on inflation).
2) You can offset the problem of higher consumer spending brought about by general tax cuts with tighter money supply.
3) Borrowing money to subsidise energy cost is non-inflationary. (my reasoning here: it might be beneficial as it provides business with a more stable economic environment to plan efficiently. Uncertainty in markets means you can make plans which become sub-optimal, e.g. wrong investment decisions + if they go to the wall then the disruption to business is a negative hit. They have to close down, call the receivers in, and then somehow some other business needs to start up with all the start up costs and then you are back to the status quo of operating profitably. )
Truss really was not that bad at all and in addition to that she was trying to fix relations with the EU our biggest trading partner. If we get a better working relationship we can drop prices by increased efficiency. The cross border problems were seriously weighing down on business profit, and as the suppliers drop out fo the business then supply reduces and pushes up prices.
Gerard Lyons is to be listened to as an economist due to holding the most accurate economic forecasts. He was the one who most accurately predicted the 2008 crash. Most did not see it coming, including the BoE (recall our queen went over personally to complain on this matter to them!)
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Post by totheleft3 on Oct 29, 2022 13:57:15 GMT
Vinny aren't you the one who wanated the UK to become a tax haven for the rich.
Now you're saying increase Taxation on the rich and cut taxes on vat and fuel duty.
Also your Against FOM what added to the GPD.
Has always your all over the place
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Post by Baron von Lotsov on Oct 29, 2022 15:36:40 GMT
Vinny aren't you the one who wanated the UK to become a tax haven for the rich. Now you're saying increase Taxation on the rich and cut taxes on vat and fuel duty. Also your Against FOM what added to the GPD. Has always your all over the place That argument is bullshit.
It is estimated that the cost of the top rate reduction is £2bn, whereas the basic rate is £16bn, and corporation tax £15bn. The NHS budget is £136bn. Your claims fall to pieces when one uses numbers.
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Post by totheleft3 on Oct 29, 2022 16:41:19 GMT
What you suggesting Baron cut funding to the NHS and cut taxes for the rich and vat
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Post by Vinny on Oct 29, 2022 16:58:38 GMT
Same thing is happening to most countries, it's the legacy of Covid debts exacerbated by the war.
Inflation has hit 8.2% in the USA.
10.40% in Germany.
17.2% in Poland, 18% in the Czech Republic, 7.3% in New Zealand and Australia.
Everyone's struggling to some extent.
Liz Truss hasn't helped though.
Cutting taxes on the poor, is not the same as cutting taxes on the rich.
Leave taxes on the rich in place, leave the 45p rate of income tax in place, cut taxes on the poor.
VAT affects the poor.
Businesses can claim back VAT. The poor can't.
Fuel duty affects the poorest far more than the richest.
Cut it.
Freedom of Movement selected immigrants on the basis of their nationality, not their skill.
There are other migration models that are better for GDP.
At the moment, because of Covid we're in an economic debt crisis.
Reducing taxes on the poor will help them. The rich need to pay their fair share.
Once we're out of the crisis and the debts are down we can cut taxes for everyone.
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Post by Baron von Lotsov on Oct 29, 2022 19:52:50 GMT
What you suggesting Baron cut funding to the NHS and cut taxes for the rich and vat We wasted £2.2bn bailing out Bulb, but no one raised an eyebrow and it did not collapse the pound. I'm being straight up here - people have been shitted about Truss and her plans. I think she was actually honest. You prefer liars eh? Honesty sounds so frightening. |
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Post by Toreador on Oct 29, 2022 19:57:03 GMT
What you suggesting Baron cut funding to the NHS and cut taxes for the rich and vat We wasted £2.2bn bailing out Bulb, but no one raised an eyebrow and it did not collapse the pound. I'm being straight up here - people have been shitted about Truss and her plans. I think she was actually honest. You prefer liars eh? Honesty sounds so frightening. Octopus has been given permission to take over Bulb. |
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Post by Pacifico on Oct 29, 2022 21:37:34 GMT
Comparing Q2 this year with Q2 2021 the UK economy has grown 4.4%. Eurozone 4.3%. Germany 1.7%. France 4.2%. Italy 5%.
Perhaps steady as she goes is what is needed at the present time.
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Post by Baron von Lotsov on Oct 30, 2022 14:03:26 GMT
We wasted £2.2bn bailing out Bulb, but no one raised an eyebrow and it did not collapse the pound. I'm being straight up here - people have been shitted about Truss and her plans. I think she was actually honest. You prefer liars eh? Honesty sounds so frightening. Octopus has been given permission to take over Bulb. We spent £2.2bn before then and it was not even reported in the mainstream. Unfunded tax cuts for the rich did not crash the markets, OK. |
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