The Budget.

[observer]

Can't be much good news in it, having used ?200billion to bail out the banks, a global "write off" of $4trillion etc. But aside from the usual suspects (smokers, drivers and drinkers), who should be coughing up the cash? Could a 90% super-tax rate help; or a 50% cut in MPs salaries and expenses show some leadership by example?

[Bazj]

I think he should cut benefits and let everyone feel the pinch not just the workers.

 

Cut teachers pay because they get too many holidays and start getting rid of council non-jobs and stop councils paying ludicrous allowances for councillors on comittees!

 

Diesel should be halved in price to help business and cigarettes should be put up to ?10.00 a pack just to compensate and stop the import for personal use of any cigarettes from abroad regardless of what our EU masters decree

 

but you know it just isn't going to happen!

[Paul Kennedy]

Could a 90% super-tax rate help

 

Interestingly an article yesterday suggested that such a tax would result in reduced revenues as those subjected to it alter their tax status and taxable incomes.

[Paul Kennedy]

stop councils paying ludicrous allowances for councillors on committees!

 

 

Won't affect me then.

[Paul Kennedy]

Guess there will be the usual tinkering with tax and duties, high rate tax relief might be removed. There will be a few attractive soundbites offering some help to those on the most modest of incomes.....might even be the odd rabbit pulled out of the hat.

 

There will of course be substantial reductions in State expenditure, whether they will be fully spelt out in the budget we should know in the next couple of hours. I understand Government debt will top ?1 trillion, the highest figure ever....and at some stage it has to be paid off.

 

PS I guess the General Election campaign starts today.

[observer]

The problem with Baz's Budget, is the law of diminishing return: the attraction of the black market in fags etc is now greater than ever. The reductions in "Council" staff, will merely turn tax-payers into tax-consumers as they would be unemployed. As for "dole scroungers"; I guess a lot of folk will now be learning just how pitifull the benefits system actually is, from personal experience. Councillor's allowances - small potatoes - the big fish are in Brussels and Westminister. As for the "big fish"; so many loop-holes exist at the moment, it would require an army of mississippi lawyers to rake in their cash. Fundementally, if they wish to be "fair", the biggest shoulders should bare the biggest load, and if anything, the least well off should be given more money in tax cuts to get them spending again. They could of course be making savings on the Political Class, Overseas Aid and the army of "political" civil servants that spend their time on smear campaigns.

[Paul Kennedy]

You have sort of got your wish Observer, top rate tax will rise to 50% from next year, and personal allowances will be withdrawn from those earning over ?100,000 a year....don't think it will raise very much though.

[Paul Kennedy]

might even be the odd rabbit pulled out of the hat.

 

 

Guess somebody stole the hat...and ate the rabbit.

[wolfie]

Paul, you seem to be 'rabbitin' on and 'hogging' this debate.

[Paul Kennedy]

[observer]

Paul, I would have made it 90% rather than 50%; plus I wouldn't have given them 12`months to move their money out of harms way! Q> can't quite get my head round this ?2,000 for a 10 yr old scrap car? The kind of person who will trade in a 10 yr old car, is unlikely to buy a brand new one; so they may get one that is say 8 yrs old; that might not even cost ?2,000 - so doesn't it amount to giving away slightly better cars to poor folk?

[Peter T]

I think some expert said that the 50% tax would only bring in ?1 billion, which given the amount they borrow, won't scratch the surface.

 

Amazing, spend spend spend, for the last decade(money that they didn't have) and now it's borrow borrow borrow.

And these people are running the country!!!!!!!!!!!!!!!!!!

[Dizzy]

can't quite get my head round this ?2,000 for a 10 yr old scrap car? The kind of person who will trade in a 10 yr old car, is unlikely to buy a brand new one;

 

Can't get my head round that one either. While at first glance it may look like a bonus it's not really.

 

Reason 1... like you say someone with a 10 year old car might not have the money to really afford a new car... but then there's always credit which presumably is what they are banking on

 

Reason 2... depending on what car you have it may be worth more than ?2,000 anyway. Both of ours are

 

Reason 3.... If you buy NEW then the minute you drive it off the sales forecourt you have lost ?x thousand anyway (depending on the car) ... so try and sell it a year down the line and you will be out of pocket.

 

Reason 4.... aren't some older BIG cars still exempt from the new higher rates of road tax, where as the new ones aren't

 

BUT..... saying all that personally if I was thinking of buying a brand new car what I'd do now is go out and buy a ?100 banger and trade that it for the ?2000 discount and sell mine privately

[wolfie]

BUT..... saying all that personally if I was thinking of buying a brand new car what I'd do now is go out and buy a ?100 banger and trade that it for the ?2000 discount and sell mine privately

 

You would have to own it for a minimum of 12 months before trading it in

[observer]

So, just park it "off road" for 12 months, yer wouldn't even need road tax! Diz, your analysis seems fairly rational to me - so I just can't see why they're doing it; and no doubt most of the new cars will be foreign anyway.

[Evil Sid]

dis, why stop at one, buy 20 at ?100 (?2000) twelve months later you get rid at ?2000 each ( ?40,000). now is that a good deal or is there something wrong with my logic on this one?.

[Bazj]

The story goes that while in Germany car demand has risen because of the scrappage bonus; sales of other items like fridges and televisions have fallen; possibly by an equivilant amount as people buy a car instead while the offer is there.

[Dizzy]

BUT..... saying all that personally if I was thinking of buying a brand new car what I'd do now is go out and buy a ?100 banger and trade that it for the ?2000 discount and sell mine privately

 

You would have to own it for a minimum of 12 months before trading it in

 

Didn't hear that bit but not to worry eh

[Dizzy]

dis, why stop at one, buy 20 at ?100 (?2000) twelve months later you get rid at ?2000 each ( ?40,000). now is that a good deal or is there something wrong with my logic on this one?.

 

Nothing wrong at all with your logic EvilS.... pity the same can't be said for Brown, Twitter & Co

[Peter T]

I wonder how it will boost the motor industry?

Down Sarf recently and the number of new cars waiting to be shifted from the edge of Bristol hasn't gone down for years. They must be rust buckets by now.

[observer]

Perhaps it will encourage the Chavs to open up car show rooms?!

[Dizzy]

I also don't get the point in increasing the limit on Cash Isa's.

 

Having just got around to filing all my stuff away (yes the bin would have been a better place for my ISA statement) I was shocked to see that my Isa (of ?3.5k) WAS giving me approx ?10 a month in interest in October 08 but is now only giving me 70p a month Just over ?8 a year in interest if it stays that way.. YIPPEE

 

What's the point... ?

 

When you compare the amount charged on credit card/loan interest which doesn't seem to have dropped there is DEFINATELY no incentive for people to SAVE their money but they get ripped off if they spend on credit... ooh forgot that's intentional

 

But then again WHY hasn't the government forced credit card companies and the like to drop their interest rates too...

 

I for one might start to use my card more often and actually BUY things I want rather than just what I need

[Peter T]

The gov. aren't interested in protecting people or even businesses. They promised to help small businesses, but as far as I am aware, nothing has happened.

[Dizzy]

You are 100% right there Peter.... absolutely NO help at all for small businesses. Yes they can claim back current losses against tax previously paid... but they could do that before

 

Similarly there is the so called 'new' help for the under 25's who have been out of work for over 12 months. Promises of jobs and/or training That has already been implemented and has been available for some time now... so nothing new there either

 

Maybe in both cases but especially the latter they have just banked on the fact that people who never really thought about those who are out of work, or indeed the possibility they themselves might be, will now see this as a possitive measure in the current crisis when it's actually been there all along but somewhat unnoticed

[Peter T]

It's all done with mirrors and revolving doors.