* national insurance rise of 1% from 9p in £1 to 10p in £1
* capital gains tax rise from 18% to 40%
* capital gains personal allowance reduced to £2,000
* scrapping of isa allowance of £5,100 and returning it to £3,600
* VAT increase to 20% from 17.5%
* Con-Lib's will go against the Conservatives previous pledge to scrap Labours 'tax on jobs' which will see a rise in income tax for those earning above £20,000 from 22% to 23%
* Con-Lib's abandon Conservative pledge to raise threshold for Inheritance tax.
* abolishment of the minimum wage
* personal income tax allowance of first £6,475 of tax year earnings at lower rate for all tax payers scrapped to pay for lib dems idea of all workers under 10,000 to pay a new base rate of tax of 10p
*£250 free child trust fund abolished
any opinions? this could still be somewhat out, maybe scare mongering, given it was printed in the independant, which is an anti-government newspaper as far as i'm aware.
what's interesting is that if the above is correct, tax on workers will actually be proportionally much higher. i think the current personal allowance on income tax means we pay 15p in £1 for the first £6,475. with this scrapped most people will be paying the new rate of 23% tax on all earnings and not just those beyond the £6,475 threshold. and then there's the rise in national insurance, which is basically to ensure the ring fencing of front line services from the £6bn. cuts. so, tax will be 33% for the average joe on all earnings. lets face it the only people who earn less than £10,000 are 16 hour a week part timers on child tax credits. child tax credits and working tax credits will all be revamped for sure to make up for the kind hand dealt to lower incomes so those people shouldnt be fooled into thinking they're exempt and being ring fenced, cos where they deal in one hand they'll skin you with the next!
its certainly clever politics for Cameron to say he's lowering taxes, hats off to him for the spin he's already put on it, but this is the nature of all governments and there's sure to be a back lash. Part of these rises and cuts surely has to be what the new government has inherited with the national debt and not just the cliched old 'tory tax rises'. gordon brown was going to implement some of these changes aswell it should be noted so it'll be interesting to see the reaction in the house of commons by labour MPs when the emergency budget is announced in 47 days time. that's July 1st.
the question really is how bad is the debt? is it really this bad and did labour cock everything up? is it their fault entirely? who on earth do we believe? are we being fooled into believing things are so bad in order for tories to gloss over cuts to line their own pockets? none of the above cuts/rises are particularly surprising given all the chat about the need for strong government and reducing the defecit. personally, i dont know what to make of any of it, since so many politicians are dishonest crooks (even Cameron).
so....is it same old tories or what?