UK Budget- The Axe Falls

[Furunculus]

took me three years to pay off my MSc.

[Philippus Flavius Homovallumus]

took me three years to pay off my MSc.

I was fortunate enough just to make myself poor doing my MA, but I can't even find a way to get into dept for my PhD. There is litterally no facility to offset the cost, even of fees, while you are studying, and all this while undergraduates urinate their grants and loans up walls every day of the week!

I'm really quite frustrated over that.

On topic, reform of the university system not only needs to prevent it haemoraging money, it also needs to account for the spirralling cost of PG degrees.

[Seamus Fermanagh]

Choices, choices.....

VAT taxes tax the consumer/user of a particular good or service.
Advantages: relatively "invisible" as prices are usually listed VAT-inclusive, generates income across the economic spectrum on an equitable basis.
Disadvantages: can be viewed as regressive in character as since the funds that MUST be expended for basic subsistence -- and thereby taxed -- represent a higher proportion of the available resources of less wealthy persons.
Thoughts: Prima Facie, that suggests that increasing the VAT percentage will create a reduction in the demand for goods and services, notably for those goods/services which are not necessities. With demand dropping and supply remaining constant, this suggests further that prices for some luxury goods/services would drop -- thereby hurting the income streams of those providers.

"Flat" Income Taxes: In this approach all income (usually above a set "floor" amount) is taxed at an equal percentage rate.
Advantages: Encourages wealth accumulation and efforts to improve income stream, taps into most of the economic spectrum.
Disadvantages: Any earner in income ranges just above the "floor" amount will be paying tax money that "cuts" into the ability to spend on goods and services to a greater extent than those at higher income brackets. This can be viewed as regressive. Doesn't tap into "old money" that is not defineable as income in some fashion.
Thoughts: This one has a better doability factor in many political/economic systems. The potential for growth encouragement can be preserved while regression can be minimized through carefully setting the "floor" amount. The old money issue remains a concern.

Wealth Tax: Involves the periodic recalculation of an individual's total wealth -- income, property, etc., the establishment of a "safe" wealth level not subject to taxation -- and then the taxation of the remainder using some scale. Scale choices could include some form of "progressive" scale, taking a higher and higher percentage above that "safe point," a flat percentage above that point, or complete confiscation of the "extra" wealth.
Advantages: Functions as a direct means of wealth transfer to level out economic differences within a society -- which never quite happens with the other systems.
Disadvantages: Runs a real risk of "wealth flight" and serious efforts at tax evasion. Can create a "numbing" of capital investment etc.
Thoughts: No society currently practices this as an ongoing means of revenue generation. Tends to be more of a temporary act during revolutionary change periods.

Obviously, other taxes and combinations exist, but these characterize the "major" options. Thoughts? Especially vis-a-vis the UK.

[Centurion1]

Thank god the cost of my university is covered. In return for giving everything to my country.

Good deal for me since I was planning on it anyway

[Furunculus]

Choices, choices.....

VAT taxes tax the consumer/user of a particular good or service.
Advantages: relatively "invisible" as prices are usually listed VAT-inclusive, generates income across the economic spectrum on an equitable basis.
Disadvantages: can be viewed as regressive in character as since the funds that MUST be expended for basic subsistence -- and thereby taxed -- represent a higher proportion of the available resources of less .

VAT in the UK reallt isn't that regressive, as many items such as food and children's clothes are zero rated.

http://www.hmrc.gov.uk/vat/forms-rat...s-services.htm

[Philippus Flavius Homovallumus]

Wealth Tax: Involves the periodic recalculation of an individual's total wealth -- income, property, etc., the establishment of a "safe" wealth level not subject to taxation -- and then the taxation of the remainder using some scale. Scale choices could include some form of "progressive" scale, taking a higher and higher percentage above that "safe point," a flat percentage above that point, or complete confiscation of the "extra" wealth.
Advantages: Functions as a direct means of wealth transfer to level out economic differences within a society -- which never quite happens with the other systems.
Disadvantages: Runs a real risk of "wealth flight" and serious efforts at tax evasion. Can create a "numbing" of capital investment etc.
Thoughts: No society currently practices this as an ongoing means of revenue generation. Tends to be more of a temporary act during revolutionary change periods.

Obviously, other taxes and combinations exist, but these characterize the "major" options. Thoughts? Especially vis-a-vis the UK.

Actually, most of Europe practices this, using a sliding scale where greater wealth is taxed at a greater rate.

[Myrddraal]

In a sense, inheritance tax is some form of wealth tax, which strikes when your wealth is to be passed on.

Personally, I think that wealth taxes are terribly unfair compared to taxes on income, since they could result in people paying to the government more than they earn. People who live in an area in which house prices have risen dramatically would be taxed on their wealth, which they may not be able to afford resulting in them having to sell up. In comparison to income taxes this seems horribly unfair to me.

[Beskar]

In a sense, inheritance tax is some form of wealth tax, which strikes when your wealth is to be passed on.

Personally, I think that wealth taxes are terribly unfair compared to taxes on income, since they could result in people paying to the government more than they earn. People who live in an area in which house prices have risen dramatically would be taxed on their wealth, which they may not be able to afford resulting in them having to sell up. In comparison to income taxes this seems horribly unfair to me.

Not really, as inheritance tax only affects the top 5% or so of the country.



edit: Also good news PVC, that friend has now got a job (after 8 months or so) on the employment scheme which will no longer exist because of the new budget.

[drone]

Not really, as inheritance tax only affects the top 5% or so of the country.

I think you would be surprised. A lot of family farms get lost from inheritence tax, when property values nearby go up. The appraised value of the land pushes them over the estate tax limit, even if the family is just getting by as is. They are left with no choice but to sell the land to developers to pay the tax.