Libdem Taxes

[Siamsal]

At least, a question not involving religion!

What do people think of the libdems plans to shift the tax burden to consuming rather than earning? To tax what could be said to be extravagent consumption heavier than necessary consumption.

Actual details and tax levels aside! Just your thoughts on the principle. A good thing? Necessary in these times? Just silly?

[admarlow]

I see it as a desperate ploy to be ''different'' from a party that will never get in power (at least for 10 years or so)

[jake-the-peg]

In principle taxing consumption rather than earning is always good because it places the decision in the hands of the public - you can't avoid income tax (legally) but you can avoid VAT on a new swimming pool by not buying one.

It also encourages saving rather than spending although whether you think that's good probably rather depends on what your opinions are on personal debt and consumer driven economies.

You would get problems though if it is clumsily applied and raises the cost of essentials for people on low incomes.

This may be a miscalculation for the lib dems who have a large support base from retired people on fixed incomes often in rural areas.

Could it be that this is why some of the party are opposing this policy change?

[Dizzieblonde]

Originally they proposed a 50p tax rate for incomes over �100,000 p.a., but have now dismissed this idea in favour of a 'pollution taxation' instead - why the sudden change of tactics?

The more sceptical side of me suspects either a) they've realised most of the general population can only dream of earning that much a year, and so would never generate that much in tax; or b) a 50% income tax would upset too many high-paid individuals in influential areas...?

[admarlow]

or c) why should people who work hard and have done well pay for people who don't work at all and have made a hash (excuse the pun!) of their lives.

[Dizzieblonde]

lol Ad - It would be nice if government's were that ideological, but I'm afraid I've lost faith in most of them now - I'm a firm believer that money is usually the underlying motivation of most policies these days.

[jake-the-peg]

Oh those poor millionaires having to inherit fortunes or play golf whilst their employees enrich them taking home a minimum wage themselves.

Fancy them having to contribute more than a single parent to the country which made them rich.

You really ought to take the first plane out to the US admarlow - they're much more open to the "let poor people starve" philosophy out there

[admarlow]

feeling feisty Jake because you have just picked up your benefits?

[Mabelcat]

is admarlow a real person or just a thought dreamed up to make the right wing look very very stupid?

[Gef]

At the moment I am taxed as both an earner and a consumer and I doubt if the total amount of tax would be any less.

The one that really gets me is the tax on fuel. It is increased every year in line with inflation. Why? Inflation puts the basic price up every year and so I pay more in VAT and fuel tax anyway.

[mash]

I believe taxes should be based on consumption and lifestyle choices. Essential things should be exempt, extravigence taxed.
We all need to work so why be punished for it. It you work hard and become sucessful why get punished harder?
If you have the cash to be extravigant or have little reguard for the environment they pay for privilege.
Examples - food shopping, travel to work, radio, telephone NO choice
Eating out, drinking, holidays, big cars - Choice.

The lib dems have a strange mix of the two!