Rachel Reeves bereitet die Öffentlichkeit auf eine bahnbrechende Einkommensteuererhöhung vor
https://www.ft.com/content/75c67ea8-2123-4864-adf9-ea1d2469af3f
Von hihepo1
Rachel Reeves bereitet die Öffentlichkeit auf eine bahnbrechende Einkommensteuererhöhung vor
https://www.ft.com/content/75c67ea8-2123-4864-adf9-ea1d2469af3f
Von hihepo1
40 Kommentare
Tbh. She put financial markets on notice that there doesn’t need to be a risk premium on long term debt. There’s a wider issue going on stemming from what’s called the leaky ceiling in us debt.
The broad shoulders of the £45k+ ‘not working people’ must be crushed by the weight of the anxious and mentally unwell.
Wealth taxes are long overdue, she should also close as many loopholes to stop the rich hiding their assets and avoiding tax.
The Labour Parties key policy seems to
be unending Seppuku. Yeah they inherited a set of economic and demographic factors that have been getting worse and worse for the last half century. But bad as things are, better options than raising income tax do exist.
A 90% tax on Brexiteers would be perfect. She could even call it the „traitor tax“. The amount of rage it would trigger could be a reliable new power source if harnessed correctly.
The rough figures are that 1% on income tax would raise 10bn.
Benefits and pensions cost approx. 310bn a year.
In a back of the envelope, first order roundabout sense, what this means is that if we currently had no income tax and no state pension, it would require a 31% income tax to get there, which is probably about what we have now when you take into account all of the bands and cliff edges and allowances etc.
You wouldn’t be funding anything else, that would have to come from other taxes like VAT, corporation tax, national insurance etc.
To me it just feels like that is intuitively not worth it. If the average person simply put 30% of their income above the personal threshold away and matched inflation then we would all be far better off, surely.
Edit: actually, an easier way to look at this is just to note that for 2024 income tax receipts were ~310bn. So it is basically just a straight redistribution. _All_ of your income tax just goes to other people in the form of various benefits, everything else is funded from other taxes.
„Labour will not increase taxes on working people, which is why we will not increase National Insurance, the basic, higher or additional rates of income tax, or VAT.“
That was Labours manifesto pledge in black and white. If they do raise income tax, this Labour government will be the first government to do so in over 50 years.
Earning 45k isn’t even working class anymore . They are gonna punish the low income people .
Has a pre-budget build up ever had as much discussion before?
Granted, the ‚2022 fiscal statement‘ aftermath generated a lot, but it feels like this is off-the-scale in terms of spilt ink
If she puts up base rate income tax before scrapping the triple lock then labour deserve to be relegated to the backwaters of politics for the next couple of decades with the libdems. And I say that as a well educated centre left blairite. I should be be the core Starmer voter.
No way 45k can be classed as a decent income when the new minimum wage will be not far off 30k next year!!!
Assuming its true, which is a big if because not ruling something out, doesnt mean they will do something. What is the point in voting for any party, ever?
Because if true they all promise xyz in their manifesto then just go back on it. So what are people actually voting for?
[Strong Foundations. Secure Future](https://tenor.com/bQohj.gif)
Can the IMF, Gilt market and Credit rating agencies force these governments to do the unpopular but right things?
We all know it’s coming.
I’d like the government to be forced to cut pensions and welfare bills BEFORE we have an economic meltdown, not because of a meltdown.
Country is being run off a cliff by the elderly and unproductive.
I’m starting to think people should lose the vote once they receive non working benefits.
Newsflash for all the lefties frothing at the pussy at the prospect of a wealth tax – the mega rich move wealth, assets and domicile very quickly. This is why the UAE has seen an influx of millionaires and the UK has seen an exodus. It’s not the £30bn answer you think it is. Cut spending.
Can we share the article as it’s behind a paywall? Wish we would stop sharing paywall articles tbh
Why put taxes up for the mega rich when we can crush the working classes right?
The UK does not have an income problem it has bad spending habit it’s time to cut the fat, we spend ridiculous amounts on benefits and the pension.
I wonder if this puts them firmly under the greens in the polls. I expect so.
Remember folks, Labour have made polical choices not to cut spending or the triple lock and the milionaires she was banking to bank roll this on are leaving so of course it’s time to make the PAYE piggies squeal
I can’t see how she can’t resign after delivering the budget having done such a thoroughly rotten job of being chancellor.
It originally wasn’t behind a paywall, now is, use this link to read: [https://archive.is/iIP1Q](https://archive.is/iIP1Q)
So the Labour Party is ignoring the people who voted for them, ignoring the rise of living expenses and the fact that real wages for most people have not risen since 2007. They are also ignoring the fact that IA has taken over most low level jobs. Do they not see that this plays into those who want to blame the government for spending more and excessively on migrants than their own working people?
Absolute fucking piece of shit. I honestly don’t even see the point in working anymore. This country is rotten. Start offering cyanide via the NHS, I’ve had enough and want off this ride
Everyone needs to email their mp, especially those in Labour constituencies. I have just emailed mine. Make your voice heard https://members.parliament.uk/FindYourMP
This is what we get for refusing to handle the endlessly growing benefits bill.
We are already one of the most taxed nations on Earth and people have little to no confidence that services might improve given any increase. I can’t see this going well for Labour.
Two things:
1. It has been obvious since well before the GE that the country was living significantly beyond its means. In the election campaign all politicians were asked repeatedly why they weren’t being honest about the issue. Labour could have been up front about this from the beginning and they would still have been elected but they were so desperate not to do anything to jeopardise their victory. All they’ve done is turn people against them. Massive own goal.
2. If Labour don’t weigh tax rises extremely heavily on the shoulder of the wealthiest, they’re finished as a party.
She’s bonkers. She looks so unwell too like a pale zombie. And it’s everyone else fault too. 45 minutes to tell us zero. Absolutely bizarre behaviour
Starmer & her r useless…. If Labour don’t get rid by next summer they r heading into the same abyss as Conservatives
Why should we pay ridiculous taxes. I don’t believe any of this endless black hole finding nonsense. She just wants to spend other folks money on her pets
Wow, who could have foreseen this? Most politically independent financially literate people –
Published April 2024 – 3 months before the election – [https://www.independent.co.uk/voices/rachel-reeves-labour-promises-break-election-b2524422.html](https://www.independent.co.uk/voices/rachel-reeves-labour-promises-break-election-b2524422.html) – *Rachel Reeves will be forced to break one of her promises – but which?* – *We can imagine Rachel Reeves’s opening words as chancellor in the Commons. “Madam Deputy Speaker,” she will say, “I am announcing this emergency Budget because when we looked at the government’s books, things were far worse than the Conservatives had led us to believe.”*
*July 2024 -* [*https://www.ft.com/content/b5bdd049-b40f-4dc4-8282-908b0f735318*](https://www.ft.com/content/b5bdd049-b40f-4dc4-8282-908b0f735318) *- The chancellor’s mission to stoke economic growth faces dire headwinds, and might call for harsh trade-offs – Previous Labour chancellors have been more fortunate. Clarke in 1997 bequeathed Gordon Brown an economy that went on to grow at 4 per cent that year, with low inflation. It is possible that Reeves also gets lucky, a key requirement for any chancellor.*
*After studying at Oxford university and the LSE, she became an economist at the Bank of England, a part of her CV that she frequently deployed in opposition to reassure voters she was serious about public finances.* [Her CV wasn’t clarified until November 2024 and February 2025 – she got a Grad trainee job at BoE which included release to study at the LSE, she trained as an Economist for 5 years then got a job in Admin]
*Some analysts fear that Reeves’s growth ambitions will quickly clash with economic reality.*
*The problem is that the Office for Budget Responsibility, the country’s fiscal watchdog, is already widely seen as overly bullish about the UK’s growth prospects. Its year-on-year growth projections for later in the parliament are stronger than those of the IMF, for example.*
*The estimates for potential growth that underpin the OBR’s forecasts are also notably more optimistic than many other forecasters, at 1.6 per cent by the end of the forecast period. Peder Beck-Friis, economist at bond fund manager Pimco, said a trend rate of 1 to 1.25 per cent would in his view be more realistic.*
As was said by the IFS – all parties misled the public about the need for tax rises and spending restraint at the last election. [https://www.bbc.co.uk/news/articles/ckkkk90lw50o](https://www.bbc.co.uk/news/articles/ckkkk90lw50o) (June 2024 – just before the election).
Reeves needs to prepare herself for the inevitable , career ending backlash from hard pressed taxpayers and ex Labour Party voters. She’s out of her depth and sinking fast. Expect to see her in tears again soon.
> We need to boost productivity
> So let’s tax the productivity more
…
When the facts change I change my mind! Yep she can do that what’s the problem?
When my information changes, I alter my conclusions. What do you do, sir? Yep she can also do that, again what’s the problem?
Problem is it doesn’t how much extra they raise. They will always be back cap in hand. She raised £40bn last time round and created a negative impact on employment and promised she won’t be back for more.
Here we are just over a year later and her needing to raise another £50bn. Where exactly did the £40bn go- the mystical black hole was £22bn and the rest was spaffed on public sector increases with no guarantee of productivity increase and sending some to Ukraine to help fund the war and the Chagos Islands. Now they will blame Brexit – which happened nearly 10 years ago and was implemented a few years ago and it is suddenly an issue 12 months after her we come back for more speech. We all knew that Brexit ( except those that voted for it ) would increase bureaucracy and inflation and have an overall negative impact on the country, but it’s Labour and they haven’t a clue how to grow the economy. I get the day to day needs to be covered by tax income and investment by debt. But just like everyone’s household budget if you don’t have the cash you reduce expenditure which this government is not willing to do. All that will happen is people with less money on their pockets will spend less meaning we will end up with a smaller economy and guess what inflation will continue but wage increases in the private sector will stagnate as firms tighten belts due to slower sales, meaning the main driver of the economy will have less to spend
Who could have thought pennies behind the sofa wouldn’t fix our public services? They should have just embraced it from the beginning. Why did they delay the inevitable?
The best time to plan to raise income tax was before the election; roll up your sleeves, get stuck in, we’re here to clear up the mess.
The second best time was immediately after being elected – oh no, we checked and things are ten times worse than we thought, so we have no choice.
Now just makes you look incompetent.
I wish she’d just announce it already. The amount of click bait articles and pish going round the socials are bananas
Today Rachel thwacked on the rubber gloves and asked high rate tax payers to drop their pants. Now they’re wondering, will there be lube…
Knock off the triple lock, reverse Brexit, push Green and nuclear energy, ban social media for under 16s…some of the policies I’ll be looking for in exchange for paying more taxes.
But let’s face it, if the choice at the next election is Labour or Reform, I’ll actively campaign for the former if they dont do any of that.
Paywalled and no archive link. What’s in the article?