Raising revenue

[Granny Danger]

Saw something online the other day but can’t find it now.  Saying that the U.K. will need to find money to pay for an improved NHS and looking at options.  I include some below together with my own thoughts.

1. Increase borrowing.  Could play a part but I’m not too keen to follow the Trump model of borrowing recklessly to pay for short term gain (in his case a mixture of making more money and buying votes).

2.  Direct taxation.  I am in favour of a higher direct taxation but so it is skewed towards higher earners.

3.  Indirect taxation (fuel duty, VAT, etc) hits the least well off disproportionately so it’s a no from me.

4.  Corporation tax.  The reductions over the last 2 years from 20% to 18% should be scrapped and reversed.  I benefit from this but it was completely unjustified imo.

5.  Tax relieve on pensions and ISAs.  Tough one imo; we should be encouraging folk to save and invest for their retirement but maybe with not such generous incentives.  Maybe drop pension tax saving to the basic rate for all.

6.  Self employed NI contribution parity.  I’m in favour of this and was sorry it was dropped.

7.  Spending priorities.  Personally I’d like to see the Trident replacement programme scrapped.

Anything I’ve missed?

 

 

[Detournement]

MMT.

If the Tories make a commitment to increase NHS spending this autumn it will involve a hypothecated tax.

[Joey Jo Jo Junior Shabadoo]

Saw something online the other day but can’t find it now.  Saying that the U.K. will need to find money to pay for an improved NHS and looking at options.  I include some below together with my own thoughts.
1. Increase borrowing.  Could play a part but I’m not too keen to follow the Trump model of borrowing recklessly to pay for short term gain (in his case a mixture of making more money and buying votes).
2.  Direct taxation.  I am in favour of a higher direct taxation but so it is skewed towards higher earners.
3.  Indirect taxation (fuel duty, VAT, etc) hits the least well off disproportionately so it’s a no from me.
4.  Corporation tax.  The reductions over the last 2 years from 20% to 18% should be scrapped and reversed.  I benefit from this but it was completely unjustified imo.
5.  Tax relieve on pensions and ISAs.  Tough one imo; we should be encouraging folk to save and invest for their retirement but maybe with not such generous incentives.  Maybe drop pension tax saving to the basic rate for all.
6.  Self employed NI contribution parity.  I’m in favour of this and was sorry it was dropped.
7.  Spending priorities.  Personally I’d like to see the Trident replacement programme scrapped.
Anything I’ve missed?
 
 

The Brexit Dividend.

[Jambo99]

If every Scot sacrificed 1 in 10 of their Broons and Our Wullie annuals, then Scotland could kickstart the global economy. 

The benefits would be global clean energy, peace on Earth and Freedom.

Ignore the knockers. Embrace the hope.

[git-intae-thum]

Ridiculous solutions so far.

Scotland is a producer.

Mild production taxes on goods that are made in Scotland and cannae be made anywhere else will provide  a huge boost to Scottish revenue.

Spirits is the prime example obviously....at present foreign companies take all and give nothing back barring employment. In any normal country that would not be the case.

That is just a start...We could sell our oil  in the EU a dam site cheaper than just now, if it was from a Statoil like nationalised company selling direct.....with profits going to a Scottish treasury.

Water....There is a huge demand for fresh clean water. We have masses of the stuff that at present we just give away for nothing......huge earner for those with vision.

 

Power generation.......We have the potential to produce a surplus in green energy....this is unlike almost everywhere in Europe. We can/ will export that power to foriegn countries at profit.

If we remain in the UK those countries will steal that surplus at cost to Scotland.

 

just thoughts for a start

 

[welshbairn]

Any c**t who taxes my whisky more than it already is will have to talk to my Maw. Jack Daniels, tariff it tae f**k.

[git-intae-thum]

1 minute ago, welshbairn said:

Any c**t who taxes my whisky more than it already is will have to talk to my Maw. Jack Daniels, tariff it tae f**k.

Good joke.....because thats is what our revenue from whisky is the now.

[welshbairn]

1 minute ago, git-intae-thum said:

Good joke.....because thats is what our revenue from whisky is the now.

My litre of Scotmid/Morrison/Tesco own brand whisky has just gone up from £15/16 to £20, by diktat of the Scottish Government. All that extra profit goes to the producers or supermarkets, apart from the extra VAT which goes to London, minus our roughly 10% angel's share. Don't think saying an indy Government would do better on whisky is a good selling point to the punter.

[Cerberus]

Get it from the magic money tree.

[git-intae-thum]

no caring aboot the casual alky tbh......it is more the bottle of Glencfarclas  being sold in Singapore that I'm talking aboot.

 

If you have lived ootside Scotland you soon realise it is just as cheap in Asia if no cheaper.

 

That is not right.

 

It is a luxury item only capable of production in scotland. Lets make sure it is sold abroad at a luxury price benefiting us all.  These foreign types that buy it will still go for it. Its a luxury item....its basic economics ffs

[Peppino Impastato]

6 hours ago, git-intae-thum said:

no caring aboot the casual alky tbh......it is more the bottle of Glencfarclas  being sold in Singapore that I'm talking aboot.

 

If you have lived ootside Scotland you soon realise it is just as cheap in Asia if no cheaper.

 

That is not right.

 

It is a luxury item only capable of production in scotland. Lets make sure it is sold abroad at a luxury price benefiting us all.  These foreign types that buy it will still go for it. Its a luxury item....its basic economics ffs

After Brexit it's not going to be only able to be produced in Scotland.  The UK government is going to give that away on our behalf.

[Detournement]

Has no one heard of excise duty?

[Ross.]

On 7/28/2018 at 12:58, Granny Danger said:

Saying that the U.K. will need to find money to pay for an improved NHS and looking at options.

The answer that will be given is one that you won't like.

Private medical insurance for those that can afford it, subsidised medical insurance for those that can't. Of course, there will be no drop in tax or N.I. to offset the additional expenditure. That said, to ensure value for money, they will open all procedures for tender, with the NHS ending up just one of many potential service providers.

The good news is though, that the money saved from the tender process will allow the UK Government to reduce Corporation Tax further.

[Granny Danger]

22 minutes ago, Ross. said:

The answer that will be given is one that you won't like.

Private medical insurance for those that can afford it, subsidised medical insurance for those that can't. Of course, there will be no drop in tax or N.I. to offset the additional expenditure. That said, to ensure value for money, they will open all procedures for tender, with the NHS ending up just one of many potential service providers.

The good news is though, that the money saved from the tender process will allow the UK Government to reduce Corporation Tax further.

I certainly would not favour that ‘solution’; I don’t think the majority of folk in the U.K. would either.

If that was a proposal it would have to be a clear manifesto commitment in a GE and is not the starting point in the debate that has come about as a result of May’s announcement.

 

[ICTChris]

Get the chancellor of the Exchequer to put a bumper sticker on his minsterial car saying "How's My Driving?  Phone xxx to let me know" and put a premium rate phone line instead of xxx.  Then get the chancellor to drive around like a massive dick and watch the funds roll in.

[Ross.]

1 minute ago, Granny Danger said:

I certainly would not favour that ‘solution’; I don’t think the majority of folk in the U.K. would either.

If that was a proposal it would have to be a clear manifesto commitment in a GE and is not the starting point in the debate that has come about as a result of May’s announcement.

 

It will never be put in a manifesto. Almost no one, outside of a few extremists, would vote for a party who had privatisation of the NHS as one of their main pledges. It will however happen, bit by bit over an extended time period. It has been happening for a long time now and I don't see anyone who has an answer on how to reverse or prevent it from continuing.

[Granny Danger]

1 minute ago, Ross. said:

It will never be put in a manifesto. Almost no one, outside of a few extremists, would vote for a party who had privatisation of the NHS as one of their main pledges. It will however happen, bit by bit over an extended time period. It has been happening for a long time now and I don't see anyone who has an answer on how to reverse or prevent it from continuing.

It’s a valid point but not answering the question I raised (which I’m simply copying from an article I can no longer find).

Namely how will May raise the tax for this extra spending she has committed to the NHS?  Also what would be the P&B preferred options for same.

 

 

[Ross.]

3 minutes ago, Granny Danger said:

It’s a valid point but not answering the question I raised (which I’m simply copying from an article I can no longer find).

Namely how will May raise the tax for this extra spending she has committed to the NHS?  Also what would be the P&B preferred options for same.

Preferred option for me would involve a mixture of increasing income tax and corporation tax, though I would also like to see measures put in place that encourage those who can afford private treatment to take that option. Quite how that would be done I am unsure, though the obvious "Tax breaks" of some kind are probably the likeliest option.

ETA: Dumping trident and its replacement would be my starting point. Over and above that, I would then go with the above.

[DeeTillEhDeh]

We would do what every other government does - tax and borrow.

The Yoon trumpets seem to forget about the £1.78 trillion that is the national debt.

[ICTChris]

One of the major problems in the UK is productivity.  Since the financial crisis UK productivity has stagnated.  Here is a chart from the ONS on this phenomenon

Perhaps the figures pre-crash were skewed by people working in companies puffed up by soft loans or false growth.  The following chart shows this

One thing that I've heard said is that some countries like the UK have low relatively low unemployment but poor productivity whereas others, like France, have high unemployment but high labour productivity.  The government often tells us that there's been a job miracle since 2010 and they are right - employment is at record levels, unemployment has reduced - but are we just herding people into unproductive jobs.  There is also the question of 'zombie firms', companies who lumber onward, protected from death by historically low interest rates (FT article here - https://www.ft.com/content/40c44992-17c3-11e8-9376-4a6390addb44 ). 

It's a relevant point to discuss because in order to raise taxation revue, it's easier to increase income by having more production, more exports, more people consuming goods and services.  You then don't need to keep chasing a higher share of a static pool of income, you can sit back and let the money roll in thanks to new growth.

I have no idea how to do this.  So it's back to the bumper sticker.