Heard of the "Window Tax"? Value Added Tax?
1.1Pay tax on (something, especially a vehicle): the Land Rover slowly disintegrates and no one has bothered to tax it
That is still not a tax - its a reduction in your benefit - same way as you get reduction in other benefits depending on your circumstances..
It's also technically not a subsidy - Its legal name under the legislation is "Under-occupancy penalty". If you live in a house taht has more bedrooms than you need then this penalty is deducted from your benefit.
Penalties != Tax (It may feel like it is - but its not)
You cant win the Spare room subsidy/Bedroom tax naming debate.
Labour supporters inherently believe in spending more on welfare.
Conservative supports inherently believe in spending less.
In reality is simply a reduction in the amount of money people receive in housing benefits. You can call it what you want
The effect of the penalty is to unjustly tax those that really cannot afford it - to claim anything else (like calling it a "spare room subsidy") is being disingenuous.
The sad thing about the whole bedroom subsidy is it is hitting the most frail and infirm in our society. The fact is there are very few one bedroom homes in which to move these people. What do they expect folk to do? Wave a magic wand and invent a one bedroom home??
Tax dog owners so there's money clean up Dog Poo!
bertster (20th March 2014)
I'd like to see the return of a properly progressive tax system, where the rate rises (say 5% at each £100k pa) to a max of (say) 95% - all the bankers and overpaid CEOs can keep giving each other bonuses and multi zillion pay awards, but we all get the benefits in more money for the NHS, social care - who knows even a decent pay rise for IT staff!
I'd like to see a single tax rate paid by all with no personal allowance. Get rid of VAT and other duties as much as is allowable under EU law. And set the net National Minimum Wage at 10% above the Living Wage - then peg it to inflation/deflation.
As for this year, I think the budget was a little lack luster for me, nothing to write home about. Work as bumbped me up 1 spinal point, we have a 1% pay increase on top of that, and the personal allowance is upto £10,000 from the next pay packet. All in all, I'm better off. So nothing to complain about either.
Unfortunately the problem was the higher you make taxes the more people avoid them, there comes a point where you get more total revenue by actually lowering those taxes. I believe that point is around 40-50%
I gave the BBC calculator a quick run this morning. I am £0.00 better off.
Could have been worse, I'll only have to sell one child into white slavery this year.
Last edited by JJonas; 20th March 2014 at 10:40 AM.
Governments know this hence why even labour don't dare go higher.
France actually now has one of the higherest tax rates in the world of 75%, take a look at how their economy is doing....
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