- Raise NI threshold to £12,500 (cost £11bn) - Raise 40p IT threshold to £80,000 (cost £9.6bn) - Abolish Stamp Duty on all homes under £500k (cost not stated) - Cut Stamp Duty rates on more expensive homes (cost not stated) - Raise annual investment allowance from current £1m (cost not stated) - Recruit 20,000 more police officers (cost not stated)
"At hustings in Bournemouth yesterday Mr Johnson said that he would be “very, very progressive” on taxation, adding: “I believe strongly in living within our means. But there is now some headroom. Look at what we did in London, where we massively expanded the living wage. We should be lifting thresholds for those on low incomes, helping them out of tax.”"
Whether all of the above is living within our means - well we'll have to see but it does seem a bit doubtful!
Great: just what we need. Another house price surge followed by a crash.
Do the Tories ever think that an economy can be something more than people buying and selling overpriced terraced houses to each other ?
Morons.
As true as that all is, the more surprising thing is how narrow and unimaginative a tax cut that is. If he really wants to make tax cuts (and I think it’s on balance unwise), he’d be better off chopping income tax. What happened to that plan?
Anyone who wants to buy a house hates stamp duty. Nice populist move from Boris - more please!
Price goes up to reflect the lower duty.., (although you can finance against house value not tax)
Stamp duty is dead money up front.
Plus it penalises people who move more frequently, eg for work. Is moving for work or other reasons something we should seek to be punishing?
Don’t misunderstand me: I think it’s a bad tax that’s been poorly implemented.
But (a) the Laffer curve refers to income taxes not transaction taxes and (b) prices will go up as stamp duty falls
My biggest issue is the impact on labour mobility
Stamp duty has a depressive effect on house prices. Moving to reduce or eliminate it won't have the desired outcome of increasing home ownership.
It has a marginal benefit as you can borrow an increased house price but not the stamp duty
From a revenue perspective, they killed volume with the last rise so revenues tanked
Laffer Curve in action.
Laffer Curve: neoliberal mumbo-jumbo; a curve with no scale and no definition... no one can say where it peaks.
The contention that tax take at a 100% tax rate is zero is not true since it's perfectly possible to envision a society where all the proceeds of labour and investment go to the state and every citizen's needs are fully met by the state (not a society I'd recommend but theoretically possible).
100% (or even greater!) income tax rates do occur under the current system, indeed are currently a hot topic amongst my colleagues!
Comments
That struck me as distinctly menacing too......
https://twitter.com/KFILE/status/1144438702049038337
- Raise NI threshold to £12,500 (cost £11bn)
- Raise 40p IT threshold to £80,000 (cost £9.6bn)
- Abolish Stamp Duty on all homes under £500k (cost not stated)
- Cut Stamp Duty rates on more expensive homes (cost not stated)
- Raise annual investment allowance from current £1m (cost not stated)
- Recruit 20,000 more police officers (cost not stated)
"At hustings in Bournemouth yesterday Mr Johnson said that he would be “very, very progressive” on taxation, adding: “I believe strongly in living within our means. But there is now some headroom. Look at what we did in London, where we massively expanded the living wage. We should be lifting thresholds for those on low incomes, helping them out of tax.”"
Whether all of the above is living within our means - well we'll have to see but it does seem a bit doubtful!
has reached new lows.
https://twitter.com/foxinsoxuk/status/1143611499904163840?s=19