What Taxes Could Rachel Reeves Increase?

[@jimbojimbo6873]

Fun fact, Tobacco tax receipts were £8.8billion last year, with the governments plan to basically eliminate smoking tht’ll need to be accounted for again.

[@HandsomeSmells]

how much does this translate to NHS cost savings from tobacco related health issues?

[@tomtimtomtim]

​@@HandsomeSmells which you then need to compare against the increased life expectancy, what period of that will be in Ill health on average. Plus the cost of the increased pension payments over that period & any other benefits

[@olivermahon5618]

​@@HandsomeSmellsSmokers are extremely tax efficient, massive amounts of tax and a lot less state pension so the increased NHS spending is small in comparison

[@regarded9702]

​@@HandsomeSmells as macabre as it sounds, letting people kill themselves saves the NHS money.

[@loowyatt6463]

​​@HandsomeSmells Smoking cost the NHS £2.5 billion. So it would be around a £6.3 billion hole People dont seem to understand the fact that smokers are very profitable for the government and NHS. While alcohol is the largest drain on the government and NHS.

[@blackroseangel123]

If you legalise weed its about 6 billion - 25% of the job done and everyone gets to chill the fuck out

[@Barziboy]

Not to mention the reduction in Policing of it that could be focused on nastier crimes. Hell, throw in the seratogenic psychedelics (y'know, the one's that UK is/was leading in research in for Treatment Resistant Depression) as well and you can open up healing retreats like in Amsterdam in the great green countryside, and deminish the Domestic Loss in Productivity from all the multi-faceted issues that stem from depression. Would be a bountiful boon to our socio-economic (and environmental) ecosystem.

[@SupremeST25]

But no, the greed of politicians who have an interest in keeping it illegal at the expense of pretty much everyone else

[@moonlit_forest2680]

@@blackroseangel123 Why should the bad drugs be legal?

[@Jamjarrrr]

Yes yes yes

[@corpclarke]

Tobacco tax receipts were £8.8 billion so £6 billion on cannabis seems a lot.

[@Rosbif06600]

She could ask Dido Harding to give back the £37billion she "spent" on a £50million track'n'trace app?

[@jimbojimbo6873]

You realise all the money spent on that was spent right? It went back into the system, paid wages, paid taxes and continues to do so. The money hasn’t disappear’. It never does.

[@TiffanyLaVoom]

@@jimbojimbo6873 Squandered, expensed, and in all likelihood embezzled.

[@FuzzyRiy]

@@jimbojimbo6873 It was a huge waste of money as it was a pointless app...

[@chadimirputin2282]

​​@@jimbojimbo6873that money was borrowed from thin air made on a computer and added to the ever increasing debt the uk is currently running. Which is in the number of trillions.

[@bishboshs]

The app didn't cost anywhere near 37bn and you know it.

[@croneryveit9070]

WHEN DID WE LEAVE AUSTERITY?!?!?

[@freddytang2128]

How do you define austerity? If the economy is bad and government can’t collect as much revenue, it’s not austerity to stick to a budget and live within your means

[@atonito5062]

Is the monarchy ever in austerity or affected by low economic times?

[@moonlit_forest2680]

@@freddytang2128 Are you actually this slow in life? The year 2010-2020 was known as the austerity period because of cuts to infrastructure and spending on other areas.

[@corpclarke]

Just look at a graph showing UK state spending in real terms. Since 2008 state spending has gone up in every year except for one (2014). Austerity just never happened. It was a myth.

[@johng.1703]

I was studying that tax chart, and the massive hole is missing? you know the one, the tax dodge loophole. close all the loopholes and you would have an extra block that would be as big as income tax and VAT combined.

[@loowyatt6463]

@@johng.1703 If you do some research you'll find that tax dodge loopholes are closed all the time. Someone just always comes up with a new one. It's also incredible expensive to investigate people breaking tax dodge loopholes. Fun fact: In the US they have the same issue. So they wait for around a decade, collect up as much evidence as possible. Then go after the biggest tax dodgers all at once and fix the tax dodge loophole.

[@zinedinebourenane1015]

so true, governments have become to inefficient, the uk's tax system is a leaky hose and rather then fix the leak the government just turns up the water pressure

[@edli323]

Trades accepting cash to avoid VAT alone should far exceed £20b a year!

[@TheVesko95]

Which one exactly? Non doms is being closed

[@johng.1703]

@@edli323 that is just a drop in the ocean for the legal tax avoidance.

[@Stepbystep74]

Hitting the 35bn of tax avoidance doesn’t appear in that chart. Nor is a wealth tax or anything. Looking at what is already there can be a little limiting. They could also drop thresholds or introduce bandings which would alter the number of people affected by a tax or make people who aren’t “working people” pay more

[@IAMMARTICUS1470]

Thresholds have been falling in real terms since 2022, and will continue to do so until at least 2028

[@bishboshs]

@@IAMMARTICUS1470 "and will continue to do so until at least 2028" how did you come up with this? Are you Rachel Reeves?

[@corpclarke]

Tax avoidance is just not paying any more tax that you legally have to. Anyone with an ISA or pension is doing tax avoidance. Anyone who doesn't send HMRC more money than they legally have to is doing tax avoidance. Presumably you meant tax evasion?

[@iielysiumx5811]

I love being taxed on literally everything I do

[@Bean_guy2]

Would you rather not have roads or public transport?

[@rubberduck3788]

@@Bean_guy2 we're pretty close to that around me anyway (a mid-size town in West Yorkshire), the roads are terrible and have largely fallen apart (take a look at the road heading into Leeds as you come off M621 J4 westbound as a great example), and the bus services have been cut down to 1 per hour from 1 every 15 minutes a few years ago.

[@haggishighways]

​@@Bean_guy2 The roads are filled with holes and the public transport is private. Next.

[@jonathanodude6660]

@@haggishighways did you watch the video? why do you think that is? 😂

[@haggishighways]

@@jonathanodude6660 What are you on about?

[@tomwilliams973]

Isn’t a tax on employer pension contribution essentially a tax on working people’s pensions? The beneficiary of that contribution is the worker and businesses would simply offer the same level of contribution and the worker would take the hit of whatever tax is levied on the business’ pension contribution. Maybe I’m misunderstanding how the tax would work and how employer pension contributions, please correct me if I’m wrong. To state that taxing employer pension contributions isn’t a tax on working people is, at the very least, short sighted and some may argue intentionally misleading.

[@jameshodgetts7541]

Agreed entirely. No matter how the tax actually works, its an extra burden for a buisness to bear when employing someone. If you suddenly increase the costs your staff have, you have a dilemma - either reduce the next pay increase or worse, remove people entirely from that staff bill. People seem to love the idea of taxing buisness to the hilt, and im not against taxing buisness. But those same people totally misunderstand that a business has to be profitable to be functional and be an employer of people. If the total wage bill goes up due to an extra tax on it, that employer can either increase prices, or reduce the labour bill - or both....

[@danraes5661]

“We will not increase taxes on working people” Goes ahead to effectively increase taxes for working people via other methods. HOW ABOUT BALANCING THE BUDGET BY INCREASING COUNCIL TAX FOR ESTATES WORTH OVER 2 million pounds…

[@jameshodgetts7541]

2 million is an ex council flat in inner London though....

[@user-nl2kt9jc9p]

Where does 2 million come from? Why is this a magical number? Why not £1 million? why not £100K? Why not on anyone who owns a house? Surely owning a house makes you rich? Or... maybe increasing tax on those who already pay by far the most tax in the country is not the way to move forward - according to the climate change committee a move to Net Zero by 2030 is costing the UK £50 billion/year - why not slow down this ridiculous target? Why not drop support for Ukraine and instead spend our own money domestically, while supporting a peace deal instead? Any of these would generate billions upon billions more pounds than simply raising taxes... food for thought!

[@nightlyfrost]

Ooooor they can start increasing tax on landlords that own more than 4 properties.

[@user-nl2kt9jc9p]

@@nightlyfrost Why more than 4 properties? what if the total value of the 4 properties is only £400k? Where does the idea of 4 being some crazy number even come from? What if these landlords are charging fair rent rates and haven't increased prices on their tenants for years? Or do you just think all landlords are inherently bad, especially if they have 4 properties or more?

[@mxjaz82]

​@@nightlyfrost Exactly! we need private landlords to sell off so mega corps can buy more properties. Don't worry a couple of companies owning all the rental properties won't go wrong at all 😎🎩

[@AlphaHorst]

Its even worse than you showed. If taxes on flying are ruled out because they could "affect working people" how come you left out "fuel duty" and "enviromental taxes" both of which are taxes which affect working class people the most. Enviromental taxes could also be argued to be part of coropration taxes. still neither of them can be increased without breaking the core promise of "no new taxes on working class people" Also taxing pensions is sth taht should never be done, just look at germany. They did it. The most hurt are low income to high middle income families whos now sit with a pension of barely 20% of their average monthly earnings. So many in germany still work with 70 or more because they can not afford to live as half or more of their pension is lost to duties, taxes and insurance. Taxation of still "dormant" pension pay is even worse, as it simply reduces the already low ammount and is literally the opposite of what should happen. In the UK the plan is to put the money into fonds which increase in value thereby increasing the pension sum people receive, taxing that would reduce the pension people get. THis is a policy which will lead to MASSIVE issues in 10 or fewer years.

[@Alexander-yb1zc]

Honestly I'd be more impressed if they keep their manifesto promises than if they fix the black hole.

[@TiffanyLaVoom]

What promises? In the election all they did was give vague answers, and deliberately dodged giving any real promises. There were numerous warning signs that this was coming, and ignored.

[@metalhead2550]

It's worth mentioning that increasing CGT may not only make people more reluctant to sell their assets but it's also likely dissuade some from investing at all which is what Labour are trying to boost for their "growth agenda"

[@Dav1d_I]

Exactly! If Labour increase CGT to 40%, won’t people be incentivised to hold onto their investments and wait it out until CGT comes down again? Just buy gold, long term shares, property etc and hold them until the Tories come in and bring CGT down

[@quackcement]

People already pay tax before they invest. Investing in stocks is good for the economy. Also you might only sell shares every 10 years. If taxed as annual income, they you'd pay disproportionately too much the year you withdrawal shares

[@metalhead2550]

@@quackcement agreed on the annual part, the associated caps also don't take into account any affect of inflation.

[@jackjennings6143]

We don't need higher taxes; we need more efficient government services by reducing bureaucracy and middlemen.

[@ricequackers]

The pigs at the trough won't accept that.

[@bishboshs]

Why hasn't anyone thought of that before?!

[@RyanShiels]

And who would implement this? The bureaucracy and middlemen... I'm sure that will go well

[@rzvr4490]

Paying tax on gambling and betting winnings, for sure will raise more the 22 billions and it will affect just a category of people

[@HBS444]

push gambling into the black market and reduce the revenue of the gambling companies that pay the tax genius.

[@joshuam511]

As a young person I am not happy with the idea of yet another way of fucking over my retirement. I have a great job at the moment and I can't to buy a house or save enough for retirement to be comfortable.

[@jayc342009]

I don't think we will ever retire bud

[@attackxxx]

Then you should be glad they are finally addressing debt

[@BocaoZ]

I hear you, Josh. Unless things fundamentally change, this country is unfortunately cursed for generations.

[@robc1014]

Sure is a nice time to migrate to a better country.

[@sentiel]

They'll look to phase out State funded Pensions, it's why they've introduced a mandatory Pension Contribution to our salaries. It makes sense from a financial PoV, just with the annoyance that we're the generation that will get screwed at all stages of our lives as we're the unfortunate buggers that've drawn the short straw of being born in this changeover!

[@robc1014]

They’ll increase as many taxes as possible so long as it’s mainly targeted at hurting the working class and elderly.

[@Mr-Reece]

A land value tax would be a very sensible proposal imo. Shame she eliminated the possibility of new taxes.

[@InnesRobertson]

It would not be easy as poor people in rural areas could pay more than wealthy people in towns and cities. Valuing land is difficult, green belt brown field flood risk soil quality planning prospects etc. For land bought and sold in the future it would be easier as you would have the land surveyed. Otherwise it can cost 1000s to survey and the whole process would take about 20 years.

[@Dav1d_I]

It would be complicated and time consuming, but that doesn’t mean it’s a bad idea

[@noahjohnson8740]

​@@InnesRobertson people in rural areas would definitely not pay more, land in cities is far more valuable. Look at London, you can get a parking space for 50 grand. Granted the actual system for evaluating land value has many different ways it could be implemented. But the current council tax system has a procedure for evaluating property prices based on 1991 values I'm sure a land value tax is not out of the question

[@mandrakejake]

You're talking about taking wealth not gains? If you own land and don't sell it there should be no tax to pay

[@noahjohnson8740]

@@mandrakejake taxing land when you sell, like stamp duty, punishes people for moving and causes inefficiency. People will be less likely to move for job opportunities, or to downsize their house in old age. When you think of land ownership as a rivalrous, zero sum fixed supply resource, then it makes sense to tax its usage over time. Otherwise we get the problem we have now of land speculation and ever increasing land prices, where its impossible to afford a house and developers keep empty lots for them to accumulate value rather than actually building on them. 🔰

[@PAMCMLXXXV]

Keep kicking the can. Cant tax your way out of your problems.

[@liamswyr1071]

I guess it's not corporation tax or for the top 1%

[@Bean_guy2]

They said on the campaign that they would not increase corporate taxes for some reason

[@bishboshs]

@@Bean_guy2 "for some reason" was to ensure they didn't scare business investment in the UK.

[@thatokperson]

Genuine question, what's so divisive about alcohol tax?

[@maybeclay6]

The government making money off something that is generally harmful

[@thedewberry_6399]

Raising it has a huge impact on Pub footfall, if raised too much you're essentially killing off an already struggling industry that most working people view as a huge part of the national culture.

[@Mr-Reece]

You have no idea

[@Jmcinally94]

British identity is tied heavily to pub culture. It's not the healthiest thing, but there is a lot of historical necessity that led us to this point today. So politically, if you change anything it's always met with derision. It's why we still have pints.

[@slothsarecool]

Brits do nothing but drink, and then wonder why their economy is broken 😅

[@mikeyallen6758]

Given how much of an increase in budget is needed, ruling out increasing the top 80% of government income is absurd. She could have put slight increases across the board (i think 2% on average for everything) and reached the goal she needs but instead shes too scared to do anything that will hurt the donors wallets. Even just income tax could have paid for it in full if she just tweaked the numbers and thresholds a little, that way she could actually deliver on the promise to not over tax the working class

[@AlphaHorst]

The promise was "no new taxes on working class people" So rasing VAt would be a direct break of that. VAT is already 80% paid for by working class people as they can not get tax breaks or rebates due to owned buisnesses and clever bookkeeping. Raising VAT is the WORST way to fix the issue as it entirely breaks the promise by almost exclusively taxing the working class people.

[@kenwalding6003]

Why do you think that the bribers pay and they accept all those bribes?

[@mikeyallen6758]

@@AlphaHorst true, that was just a way to show that she could have made small increases across the board for the same effect. Hence why i then focused on the income tax changes

[@moonlit_forest2680]

She literally promised it so she can’t break it! Stop being silly

[@SaintGerbilUK]

Does there need to be a large increase in the budget though? Government spending is at an all time high, taxes are nearly at an all time high, debt is at an all time high. To me it seems like they need to shrink the budget and actually spend on things which will help the people of the UK.

[@roberttopliss8512]

Going after people who are preparing to finance there own retirement will eventually cost the government more money.

[@versaceviper9798]

Don’t touch our ISAs!

[@TiffanyLaVoom]

Who in the hell can afford one these days?

[@robc1014]

@@versaceviper9798 but how else will they target and hinder the working and middle classes trying to improve their lives?

[@versaceviper9798]

@@TiffanyLaVoom People working multiple jobs and spending countless hours trying to better their lives because they know they can never rely on the government for anything.

[@versaceviper9798]

@@robc1014 Good point! But I’d rather pay more income tax than have my ISA raided by Rachel THIEVES.

[@versaceviper9798]

@@robc1014 Good point! But I’d rather pay more income tax if it meant they keep away from the very few tax free avenues we have here in the U.K.

[@Pobotrol]

There's downsides to any attempt to solve the problems of our economy. Some people will be hurt whichever way we go and the press is always ready to bite back to discourage action.

[@SaintGerbilUK]

Labour: We have a £22b tax blackhole, and we are also going to spend our way out of every problem.

[@TheAmericanPrometheus]

Isn't Keynesian economics wonderful?!

[@moonlit_forest2680]

What aspects are they spending their way out? They cut the winter fuel allowance. Did you not see how austerity damaged the growth of the UK?

[@moonlit_forest2680]

@@TheAmericanPrometheuswould rather take Keynesian economics that actually grows the economy over a failed austerity project

[@SaintGerbilUK]

@@moonlit_forest2680 Education reforms Doctors strikes Train strikes 24h courts Ukraine funding International Aid GB Energy GB Rail GB Water

[@ymwan]

The lack of arithmetic skills of this government is astonishing. Since pension contributions is simply tax deferred, a 40% tax payer under existing system puts in £6 for £10 received in their pension pot. If they pay 20% tax on the way out, £8 is received, i.e. a gain of 33% (£8/£6 = 1.33). If they pay 40% tax on the way out £6 is received, i.e. a gain of 0% (£6/£6 = 1.0). If they change the tax benefit on the way in to 30%, a 40% payer puts in £7 for £10 received in their pension pot. If they pay 20% tax on the way out £8 is received, i.e. a gain of 14.3% (£8/£7 = 1.143). If they pay 40% tax on the way out £6 is received, i.e. a loss of 14.3% (£6/£7 = 0.857). Who would tie their money in pensions with either a loss of 14.3% or a mere gain of 14.3%. Put the money into an ISA or GIA and you'll make the 14.3% gain back over a couple of years.

[@jimbojimbo6873]

@@ymwan they still get 1) employer match if employed and mostly importantly 2) 25% tax free on the entire amount

[@ymwan]

@@jimbojimbo6873 The 25% is under threat. 40% tax payers tend to make AVCs because of the potential uplift. If one makes the minimum company match it is never likely one would retire with anything meaningful. As one gets older and the kids have left home and the mortgage is paid off, one focuses more on adding to one's pension. This benefits the whole system creating employment for the country. If one moves that money into an ISA or GIA, it is more likely one would simply take the money and run. What's being persued is social engineering not economics.

[@philipjamesparsons]

Excellent logic, but there is one big flaw in your logical argument. Labour do not appear to be logical. Still, even if they do mess with pensions, it cannot happen in an instant and there will be fireworks.

[@NoteSelf]

That's only the case if there is no interest/returns on your pension savings. Think like the Lifetime ISAs - one year you put £4k in, and you get £1k added - equivalent to a relief rate of 25%. But, you get interest/returns on that full £5k. If the averaged annual interest rate is 2%, you'd have £5,100 for paying in £4k after year 1 - a 27.5% gain. By Year 25 with no extra additions, that £4k investment would be worth £8.3k, or a 109% gain. That's not even taking into account any matched contributions from your employer.

[@ymwan]

@@NoteSelf LISAs have no tax on the way out. Pensions do (check my maths). I'm not against pensions, I'm against the possible changes coming. I like many others will change strategy as the government moves the goal post. Unless there is a revolution, we have to put up with what the dictators decide. Animal Farm should be brought back into the curriculum.

[@emotionallychallenged]

I think you missed a lever or two. They could introduce new taxes like a wealth tax, financial trading tax, 2nd homes tax, a mansion tax, a luxury goods tax, as well as legalising and taxing things like cannabis. Or reforming existing tax like inheritance tax.

[@lesliecarter4295]

EV tax should go up to pay for the loss of jobs in ULEZ enforced in cities…?😮

[@tomlc6348]

And we are going to spend £22Bn trying to develop Carbon Capture under this situation. Well done Labour!

[@davidwebb4904]

If they ENDED CORRUPTION, there would be plenty of money. Stop paying 10x market rates for infrastructure projects for a start. Why are we paying £65 Billion for HS2, when the same in the EU would cost £15 billion. Theres £50 billion savings right there.

[@alexcovey1200]

Estonia has such an efficient tax system that they only need something like 7.5% to run everything.

[@user-op8fg3ny3j]

Because politicians are the ones gaining from the corruption

[@hydromic2518]

@@alexcovey1200Estonia has digitalized a lot of their government so they save a lot of money.

[@coconut7490]

@@alexcovey1200 Estonia is very efficient due to them largely automating and digitizing their bureaucracy, the government is basically on auto pilot for most services such as tax filing etc... the UK could do it also but I'm guessing the government don't want to make their own people lose their jobs.

[@SaintGerbilUK]

Yep too much government red tape means doing anything takes a decade to do and goes over budget before it starts.

[@davidrubio.24]

A combination of all this proposals would make more sense.

[@johnburrows3385]

The difficulty, IMO, is over the last 40 years government assets have been sold off ,thus reducing the states income stream. Also, the natural monopolies being in overseas private ownership have being estimated to be 20% more expensive to businesses and consumers . Add to that the failure of government to use North Sea oil revenue to build up a sovereign wealth fund to aid public investment and we're basically in a mess. The selling off of Council housing , yet another long term fiscal disaster, the government would've have made a small profit on rents , now the state has to pay out billions in in work and housing benefits to people unable to afford sky high private sector rents. This is why , despite crumbling public sector services and long term austerity, we have the highest tax burden in history. The government has become poorer and weaker , a successful economy has BOTH a very strong public sector AND a strong private sector .....IMO you can't have one without the other !

[@anaxscotia]

Won't raise VAT or taxes on working people? She's planning to raise VAT on school fees which will disproportionately affect working people!

[@ironmaiden795]

Introduce a tax on people who cut queues or moan about the weather! It's the UK, they'd make £22bn in a day.

[@IainFrame]

Middle lane hogs on the motorway

[@jayc342009]

Add politicians who lie to that

[@nothereandthereanywhere]

@@jayc342009 It would be budget surplus in a week =)

[@colin1493]

She could increase or decrease any taxes she Likes, she could create new or remove existing taxes. She is the Chancellor, it’s her job, it’s why we elected her. Stop flying kites, we’ll find out soon enough.

[@fateenshareef8716]

In retrospect, ruling out use of 75% of your arsenal before the battle even begins seems to be a mistake. She locked herself into a box before she even got the job. Interesting to see how she does her job.

[@Alexander-yb1zc]

Capital gains reforms, Council tax reform, Fuel duty/Road tax reform, inheritance tax reform, there's a lot they could do it's just making sure that's is diverse enough to not dampen growth.

[@Ahad-bj1cz]

Due to Fiscal drag, taxes don’t need to even increase. We are already paying more. That “black hole” has decreased due to severe inflation and taxes on VAT, salaries and borrowing isn’t required. I like the commitment.

[@SamBankman-Fried]

@@Alexander-yb1zc Council tax is a good one. Residences in the City of Westminster pay some of the lowest rates in the UK despite being the most expensive real estate. When I was looking for a place to rent, I was absolutely shocked to find an expensive flat in Westminster paid 1/3 the countil tax of my aunt in Rutland who lives in a modest semi.

[@Alexander-yb1zc]

I think it's more about balancing the books for projeced inflation, debt repayments and investment. The tories made commitments without funding which is what the black hole refers to so those projects need to be scrapped and the projects implemented with proper funding.

[@Alexander-yb1zc]

@@SamBankman-Fried That's because council tax is fixed at the rate of the value of the property in 1991, limited reform bringing it in line with updated housing costs and pinning the cost of the land owner rather than the occupant could go a long way by increasing working class people's disposable income, moderating the housing crisis and raising funds.

[@constantfear]

Gosh seen Dan Needles infographics floating around everywhere, we should rename this video to what does the IFS think Reeves will do 😂

[@blackroseangel123]

That's a really nice graphic, nice jobs guys 👍

[@abduco1847]

the poor will pay for it

[@jamesliasi2246]

You forgot fuel duty too. I reckon: 1) CGT rates will align with income tax 2) Fuel duty will rise 3) One of the pension based options mentioned

[@user-nl2kt9jc9p]

if CGT aligns with income tax they will instantly destroy so much investment in our country, the amount of productive people and entrepreneurs who would leave would destroy us

[@jimbojimbo6873]

CGT aligning to Income would be disastrous and ruin the prospects of foreign investment in the UK Not even the most socialist of countries dare go over 25% let alone go to income tax levels.

[@hughjass1044]

Politician - "The finances are a mess and I'm going to fix them. But I'm not going to cut spending, raise taxes or borrow more." The public - "Wow! Ya mind cluing us in here about how you're planning to pull that off?" Politician - "Sure! We're going to 1) return all our empties, 2) dig all the coins out of the sofa cushions and 3) pray a lot. And if none of that works, we'll just obfuscate, dodge tough questions and keep calling the other side a bunch of silly buggers."

[@Sparta1993]

They are stealing your money. Don’t be simple minded

[@yurisei6732]

Every time Labour balance the budget by cutting spending or raising tax, people's lives get worse, they vote for the tories, and then the tories take credit for having a low deficit. You'd think labour would have come up with a new strategy by now.

[@abydosianchulac2]

Given this channel's viewer demographics, it's worth asking: are you old enough to remember the last Labor government?

[@Rogue_Leader]

After 14 years of Tory misrule we have the highest tax burden since WWII, With respect, you don't know what you're talking about. I have a small business and I pay three times the NI that employees do.

[@FuzzyRiy]

@@Rogue_Leader And what was the decade before like? You know, the one Labour ran? I heard Gordon Brown and Blair did great things........(No I don't support Tories, Labour and Tories are the 2 sides of the same shitty coin).

[@Rogue_Leader]

@@FuzzyRiy Ah, I see. You think the global finacial crisis that started with mistrust engendered by the collapse of equities backed with subprime mortgages in the United States was Gordon Brown's fault?

[@Rogue_Leader]

@@FuzzyRiy And no, I do not support New L:abour, who did at least as much to sell off state assets as Thatcher did.

[@venomtailOG]

At least fuel duty's not going up. Gotta enjoy the price of fuel this year.

[@3thinking]

A country cannot tax itself into prosperity.

[@sc754donaldn3]

Then how do you account for the Nordic countries having both the highest taxes and the highest standards of living?

[@tancreddehauteville764]

Rubbish.

[@krelleon422]

​@sc754donaldn3 well our living standards are rapidly going down and you can't really tax us more so I think the theory to just tax us more to solve the problems is kinda silly

[@mickeypitty3680]

What about the massive amount of foreign aid we’re sending out or spending on illegal migrants on the last 10 years both in and out of prison

[@SaintGerbilUK]

Starmer said about a week ago that both are non-negotiable. Apparently, they are a government of service for Ukrainians before Brits.

[@HomebaseLHR]

@@SaintGerbilUKUkrainians aren’t the ones we’re worried about. It’s the 1000 people a day on dinghy’s

[@hidderaven7890]

Negligible amounts. Wouldn't end the deficit.

[@nomoreheroes93]

Huge elephant in the room here is the assumption that she wouldn’t U-turn on a previous promise - that’s practically the only thing Labour has been consistent on so far

[@kevindruce8915]

I would like to see a tax on frequent flyers and private jets.

[@HomebaseLHR]

“Frequent fliers” so you want to track everyone’s flying habits? Welcome 1984…

[@HomebaseLHR]

UK aviation taxes are already some of the highest in the world, any further raises would destroy the sector. Sweden has scrapped their aviation taxes entirely and airlines immediately started network growth. The amount of tax you pay to get on a plane out of this country is insane already.

[@DelphineBarkley]

I plan to retire at 62 in another country outside the UK that is free, safe and very cheap with a high quality of life. I could fully just rely on only my pension and a very prolific lnvestment account with my Abby Joseph Cohen my FA. Retiring comfortably in the UK these days is almost impossible.

[@VonNothias]

I went from no money to lnvest with to busting my A** off on Uber eats for four months to raise about £20k to start trading with Abby Joseph Cohen. I am at £128k right now and LOVING that you have to bring this up here

[@VernesaGunz]

How can i reach this Abby Joseph Cohen, if you don't mind me asking? I've known her by her reputation at Goldman Sachs

[@DelphineBarkley]

​@@VernesaGunzWell her name is 'ABBY JOSEPH COHEN SERVICES'. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.

[@Merissabade]

Abby Joseph Cohen Services has really set the standard for others to follow, we love her here in Canada 🇨🇦 as she has been really helpful and changed lots of life's

[@Merissabade]

The very first time we tried, we invested $7000 and after a week, we received $9500. That really helped us a lot to pay up our bills.

[@TobotronPrime]

I keep saying it, we don’t need to increase any taxes, we have to stop enabling people and companies from avoiding them, Apple, ebay, Starbucks, and the rest!

[@wpjohn91]

You were already taxed on the money you invested or item bough or business etc to then get taxed again. In principle double taxing is wrong

[@paologat]

Just double? Actually it’s already triple or quadruple.

[@wpjohn91]

? I mean on your slary you get IT and NI. Maybe VAT on some items. Which others do you think we can fall foul of?

[@jeremybiggs8413]

Taxing pensions in a country where a large majority don’t have a personal pension and where pensioners vote in overwhelming numbers is political suicide.

[@cartobellum]

Getting rid of the NI exemption on employer contributions is likely a target. Could raise 16bn GBP without alienating a big voter base (which getting changing tax relief for pensions would)

[@danielwebb8402]

But is a "tax on workers". Employers NI comes directly from a company's salary budget

[@cartobellum]

@@danielwebb8402 it's not a direct tax on workers. It's raises costs for firms, which could be passed on to employees (eg. Offering a less generous employer contribution in response to the govt)

[@danielwebb8402]

@cartobellum A company would include it in its "cost of employees" line in its budgetting

[@Jamal-Ahmed786]

As well as CGT being equalised with income tax, I also believe divident tax should be equalised with income tax

[@paologat]

Dividends are paid out of company income that has already been taxed. And then they are taxed again upon distribution to shareholders (including pension funds). Would you like them to pay, in effect, double income tax?

[@user-nl2kt9jc9p]

What is your reasoning behind supporting an increase in CGT?

[@Jamal-Ahmed786]

@@user-nl2kt9jc9p tax equity

[@grafity1749]

Doing everything to avoid taxing the rich.

[@corpclarke]

For most people, capital gains tax is taxing money that has already been taxed. After paying income tax, VAT, council tax, VED, TV licence and everything else, you manged to save or invest some money. If that meagre spoil you were left with actually returns anything, lo-and-behold, they tax you again! It's morally repugnant.

[@zxdgaming927]

The black hole they made 😂

[@Theredsunrising]

Oh good, being more poor.

[@seyiagboola]

Are politicians allergic to Land tax?

[@AlexGoldring]

I pay about 10% of my income to council tax already, you want more do you?

[@InnesRobertson]

For land bought and sold in the future it would be straight forward but it would take 20 years at least to survey all existing land. I have a small amount from my parents has to get it surveyed for HMRC took 3 months and cost 3000 pounds. Wealthy people in towns and cities could end up paying less than poor rural people. You need to know does it have developmental potential, flood risk, area of special scientific interest, brown field green belt soil topography are there protected species living close by. Desirable area or crime zone etc

[@liamastill6733]

Like 90% of people don't own the land they live or farm on, and if you do own land you can absolutely afford it.

[@AlexGoldring]

@@liamastill6733 This is funny. You assume money just grows on trees or rains down. World is unfair, but it's not nearly as unfair as you seem to think. I work 100h weeks and more than 50% of what I earn is taken by the government. You clearly seem to believe that's fine and the state should take even more from me. I work 2.5 times more than an average full-time working person. I literally have minutes of personal time like right now. You want more money? Go take an extra shift, learn a skill. That doesn't work for some, but it works for an overwhelming majority, you just choose to seek blame outside.

[@JasonAtlas]

​@@AlexGoldringand how much do you make a year may I ask?

[@Markus_Aurelius1]

THE REPUBLIC OF IRELAND 🇮🇪 IS NOT BRITISH. THE REPUBLIC OF IRELAND 🇮🇪 IS NOT PART OF THE UK AND HASN'T BEEN FOR OVER A HUNDRED YEARS. DID YOU NOT GET THE MEMO 😂😂😂.

[@davianoinglesias5030]

The largest loophole is Tax Havens, you close that and you'll have nothing to fear about raising CGT

[@xander6522]

There seems to be enough money for foreign aid and illegal migrants but not pensioners and mental health services 🤷🏼‍♂️

[@Alex-xh9wo]

Mainly because pensioners and health care costs exponentially more

[@cameronbishop6001]

Illegal immigration doesn't exist. The right to claim asylum in any country and by any route is enshrined in international law. The government also spends close to nothing on asylum seekers.

[@MrStealYourBalls]

​@@Alex-xh9wo£50k a year per illegal BTW

[@nothereandthereanywhere]

You have voted for the illegal immigrants, get over it.

[@HahaDamn]

Bro what? You can’t fix the hole by borrowing because of the second fiscal rule? Some people don’t understand basic maths - Debt to gdp is a ratio, as long as the deficit is lower than GPD growth the debt ratio will fall lol…it’s basic logic

[@abydosianchulac2]

Debt is the only thing they have direct control over in the present; they can only hope to foster GDP increases in the future. So the only way they can hold to that promise and borrow more is to wait for GDP to increase before borrowing, and that doesn't fix the budget "black hole" in the present.

[@HahaDamn]

@@abydosianchulac2 we are talking 22 bn pounds, you realise what the is in the scheme of the British economy? With an annual GDP of 2.2 trillion pounds, 22bn is literally 1% of British GDP - are you telling me that you or anyone else expects the British economy to grow by less than 1% next year? Even if we want to ignore Keynesian arguments that by raising taxes you actually stifle growth, this is just stupidity and is probably what is causing Britains anaemic growth in the first place…

[@Dav1d_I]

It’s hopeless! The Bank of England consistently debases the value of the £GB. So the pitiful amount of cash we have left after tax is continually losing its value. If we take the risk of investing our money to protect ourselves against inflation, they punish us by taxing us! And then the government wonders why there are 9 million ‘economically inactive’ people of working age in the UK. Furthermore, the ONS predicts that by 2026 this number will increase by another 317,000. Maybe the government should try getting those 9 million people back into employment so they can pay tax?

[@alexcovey1200]

F this. Its the governments fault that we have a deficit.

[@moonlit_forest2680]

Because of the tories

[@jamesliasi2246]

@@moonlit_forest2680 nope. The government giving money away in rubbish like foreign aid and net zero

[@alexcovey1200]

@@moonlit_forest2680 oh yeah

[@JSK010]

Lowering the deductibility of pension contributions sounds like a good idea. The threshold for the highest tax bracket - 125k - is high, relative to other countries (NLD, BE and GER have lower thresholds) and to UK average income (just 35k p/a!).

[@philipjamesparsons]

I earn over 125k and like many who do, I will go part time if pensions are raided. Others will head overseas or retire. Higher earners pay a disproportionate amount of tax already.

[@JSK010]

@@philipjamesparsons yeah maybe. In my country (NLD) the maximum tax deduction income threshold for pensions was lowered to about 90k (!). There were warnings and threats of people working less but that didnt really materialize. Moreover, *not* lowering pension contribution tax deductions on high earners like yourself, means that some other taxes will be raised. People who have the pay those taxes will also threaten to withold their services to avoid paying the extra tax. Figuring out which threat is most credible is the whole art of optimal taxation. Given the evidence in other countries, i dont think the UK tax on high earners is extremely high (however, higher than in the other Anglo countries).

[@Zygersaf]

Why not just a small increase to CGT, and a small change to the Pension system, and a small increase of employer national insurance contributions. It doesn't have to be all into one system, if they spread it between the 3 then it would probably be less noticeable to people for the downsides, but would still manage to close up that gap of 22B.

[@butterchickenandnaan]

What about tariffs

[@jamesbunyan9781]

How about a tax on lamposts? They don,t fight back.

[@FirstnameLastname-qe3ry]

We................ never asked for any of this?

[@GeliCarlosJ]

Less Tax Avoidance, Less Tax Evasion, Legalize Marijuana & tax, More tax on Sports Betting, Gambling & Tobacco why not do those 🤷🏽‍♂️

[@UK.Personal.Finance]

I feel like we're missing the obvious, lower interest rates.

[@greyrat_]

They could just not spend £22b on carbon capture.

[@brandonstephens2644]

Considering that's over 25 years that's not even a billion each year

[@mabeSc]

And £22b could have been put to so much more impactful and beneficial initiatives. Waste management, re-foresting, investing in other less expensive green technologies, nuclear power, green energy projects that help revitalise the economies of many cities and towns and like a thousand other things... It makes even more sense as the £22b budget will be spent over 25 years -- less expensive but impactful initiatives which could benefit the UK at large instead of a single massive CCS (at least if the funds are invested properly -- which could create jobs much more evenly across the country). There are many green initiatives even on KZbin that manage to have a massive beneficial impact with very low budgets. They collaborate with University students which is also a win-win as the students get experience in the field and the initiative saves money. A strategy of lowest cost and highest impact should be implemented as they have demonstrated, over and over again, that they do work. The US adopted a similar approach with their green energy transition subsidies if am not mistaken. The funds are more evenly distributed across the states (which makes sense, given the size of the US). The UK has the advantage of being smaller, so you'd think these funds would, at least, be distributed just as evenly across the country, no?

[@robc1014]

@@mabeSc could have pumped £22bn into Rolls Royce for their small modular reactors which is approx just over half the cost per MWe of sizewell C which coincidently cost £22bn.

[@aobrien4]

Why did you ignore 'Growth' as an opportunity to significantly increase Tax take without a shift in rates?

[@3thinking]

All Labour do is tax, waste, fail and repeat.

[@BocaoZ]

Ok bot😊

[@Rosbif06600]

....and yet the highest tax burden since the WW2 rebuild was under the last Tory government, the highest borrowing, has been under the Tories and the lowest investmentv in health, education and housing has been under the Tories.

[@ChunkyyHD]

You completely missed on CGT that it doesn't account for inflation. An asset could stay the same price (when accounting for inflation) but still have a big CGT, which is rubbish.

[@anaxscotia]

Don't forget fiscal drag. The longer tax threshold stay the same the more people get brought in to paying income tax and NI (the hidden income tax).

[@TyrooShino]

I mean... I'm gonna say "don't tax the rich" Ensure they bother to pay tax The fact rishi profited from tax avoidance and insider trading means the number 1 way to keep popularity is to genuinely make sure people actually pay tax. The thing is, Labour are known for paying their taxes. So there's 0 reason for them to not do this. It wouldn't increase rates, so those who do pay, won't leave.

[@UK.Personal.Finance]

Currently 8.4% of government spending goes towards servicing national debt, reducing the bank of England based rate to 3% would reduce that by half, saving roughly 50 Billion per annum.

[@neillfergie]

Fuel prices are low right now so fuel duty will almost certainly get bumped up as much as 10p per litre, road tax is being charged on EVs from April too and expect RFL to go up £10-20 a year on all cars.

[@Whitehouse262]

Probably need to mention another pitfall of higher CGT, inflation. Without taking it into account you can end up taxing people on real losses not profits!

[@cnxcnx]

What about new taxes? You discussed the chancellor can increase tax in the existing tax regime, but if she can introduce new tax stream, I could solve part of the problem. Seems like the scrapping of Domicile for those foreigners living in the UK can bring in more tax?

[@bl3rune]

Need to scrap the current capital gains system and introduce an unrealised capital gains tax system for more reliable tax yield from asset value increases instead of purely when assets are sold and have a per item style cap (maybe like £5k-10k) on value before you start paying it plus a combined asset cap (maybe £50K-100K) to prevent spreading wealth to avoid tax. This would hopefully discourage people hoarding assets in attempts to avoid tax

[@JSK010]

"unrealised capital gains tax system for more reliable tax yield" Taxing unrealized gains and loses actually makes for less reliable tax yields (they are far more variable than realized gains).

[@revorocks123]

Great idea. Enjoy everything you own being gradually handed over to the government year on year. You finally bought a house? Well done, sorry but it's increased £100k over the past 4 years and you now have to cough up £40k from somewhere. Dont have it? Tough. Remortgage. Oh you cant remortgage because you no longer qualify for the borrowing? Sell the house. Seriously what a dumb idea. Want to own stocks to invest in companies, maybe a friends or families company? no, again, you must sell 40% of the increased value every year. What would even be the point in investing? So much risk for so little gain.

[@bl3rune]

@@JSK010 Not in the aggregate. Asset by asset sure there are fluctuations, but nothing can be lower than a 0% tax take from not selling the assets

[@JSK010]

​@@bl3rune Assets have to be sold at point. Perhaps the total average tax yield will be higher, but it will fluctuate more. In bad years the tax yield will become negative, as (probably) investors can compensate past unrealized gains (taxes) with current losses. In that case the govt will actually have to pay out money to investors. It will get real complicated, real fast.

[@bl3rune]

@@JSK010 Not necessarily, they can be passed down. Look into the "buy, borrow, die strategy" that hyper-wealthy people are utilising to never actually sell their assets and instead borrow against them and use the borrowed money to live. They never sell the assets so they never actually pay any tax on it. Also the gov would not have to "pay out" in cases of negative gains it would offset future gains against it.

[@paullambert4691]

The hotel bills for the thousands of boat people arriving weekly is getting bigger, 973 Saturday over 26,000 so far, more on their way, so expect big tax increases to pay for them all, more increased taxes like council TAX fuel duty TAX+VAT, inheritance TAX, capital gains TAX, stamp duty TAX,insurance premium TAX, plus they will be raising the retirement age till 71 so you can pay even more TAX, so they can look after the illegals, give another 11.5 billion to the rest of the world to help fight climate change, give a few more billion away for other countries wars. What a great country to live in, when all you do is pay tax upon tax till you die, I forget your family have to pay a death TAX, come into the world with nothing, leave with nothing so they can't get their grubby little hands on what money you have left if any.

[@spacetime3]

I would go for a wealth tax, I don't think Income and CGT and pensions are that viable.

[@Joseph_Roffey]

I’d do CGT as well, but wouldn’t expect to make any money from it in the short term, as it’s just unfair that you can pay less tax for profits from buying and selling assets than from working as an employee. But yeh, wealth tax is the obvious solution 👍

[@shirlingfish8275]

@@Joseph_Roffey Or you then pay CGT on your own home when you sell it and then can't afford to move locations if you have to move for whatever reason.

[@user-nl2kt9jc9p]

​@@Joseph_Roffey I understand you want people to pay their fair share, which is reasonable, but have you considered what CGT is and who it affects? Do you know why it's lower than other taxes, and why this is common globally? CGT is kept low to encourage investment and entrepreneurship. Entrepreneurs create businesses, pay corporation tax, hire employees who pay taxes, and contribute to the economy. They also reinvest their own money, take on high risk, and aim to sell their business as their retirement pot. Taxing away a large portion of that would drive them to leave the country, reducing tax revenue and discouraging investment in the UK. These aren't evil people, they are hard working members of society who have taken on risk at the benefit of the rest of us! So all I ask is that you consider what the gain would be from increasing CGT and who would actually benefit form this?

[@urlauburlaub2222]

@@user-nl2kt9jc9p Most people mean deleveraging, but say wealth tax because it's a Socialist framing. The Socialist liberal individualism also cut out central mediators, so that's why the differences are so rampant. The Socialist can't balance, so they push those willing to help away because of their pretentiousness.

[@rossallan1733]

Raising CGT + a Wealth Tax on assets over £10m. If you have £10m in assets you can definitely afford to pay way more and should contribute more to society. If these people “leave” they cannot move their assets and the government could make it so they would need to sell them to someone else so they could then be taxed. Have you done a video on a potential Wealth Tax?

[@RFXZ67966]

2 ways. Don't you mean 3? :)

[@Jimmy4all2see]

What about a tax on gold plated public sector pensions that already accounts for a huge amount of government spend!

[@MJ-YT-USR]

Well done on mentioning the tax revenue reductions; You raise tax on something many people will reduce use of that thing. Sadly a rise in Employer NI on pension contributions will inevitably lead to layoffs or big cuts in other things, including investing which would further harm the UK's poor productivity rating.

[@Troy-McLore]

I like the 20% cap on pension relief, that actually a really good idea.

[@SomeoneSmarter]

No it's not! It will discourage the higher rate tax payers from putting more into their pensions.

[@philipjamesparsons]

It’s a very stupid idea that is actually quite hard to make work in practice. There are reasons why this has not been messed with. It will likely result in higher paid workers heading overseas, retiring or going part time. It will not raise tax much revenue in the short term and in the long run may decrease it.

[@nothereandthereanywhere]

@@SomeoneSmarter That is fine - if they are rich already, they can save enough money for the pension. The best would be if the rich paid their staff well in the first place, so they don't have to be taxed that much and the poor claiming various benefits.

[@user-nl2kt9jc9p]

@@nothereandthereanywhere You seems to be mistaken that people paying 40% tax are somehow rich? you have confused income with wealth, there is no way someone earning £60k in London would ever be considered rich, they would never even be able to afford a house. Who are these 'rich' people you like to blame who aren't paying their staff well? How many staff members have you hired? How many jobs have you created? How much tax have you contributed to the system?

[@mattrobert5]

Land value tax, legalised cannabis, not banning smoking so it can still be taxed, tax shop bought alcahol higher and reduce it for pubs so they have more revenue and not kill noght life and a welath tax. All very possible

[@RyanShiels]

Just borrow a ton of money and actually invest in infrastructure and renationalisation of water, electricity and transit. They'd make all the money back and more in gdp over 10 years.

[@adib3897]

The LSE is already bleeding and they want to increase CGT 😂

[@nicholasbrus8628]

Get rid of public sector pensions and bring everyone in line.

[@robblake8999]

Looking at the current tax income, it doesn't make sense that new revenue would come from that, because it is that distribution that isn't working. The tax system is extremely complicated, and it's common for the wealthy to circumvent it by various loopholes. Just simplification and closing of loopholes would do a LOT to make things fairer.

[@Camcorder10]

So basically, she’s gunna break her promise

[@TheHonestJock]

We need a good Financial Transaction Tax, we also need to close the tax loopholes. Do that and the deficit evaporates and we will have a massive boon of tax money to start paying off debt. It really is that simple, about £35bn a year is lost to evasion alone.

[@whoknowsbruvs]

Rachel Reeves budget plans - but no budget has been announced yet .. filling in the gaps?

[@steven280]

I have a feeling they might actually do very minor tweaks to some rates but ultimately decide to increase borrowing. They've sowed the seeds of how bad it could be and given months for people to stew. If they announce no rate increase but a debt increase you'll find the majority will be fine with it. Yes youll get the moaners but those will complain irrespective.