Chancellor delivers Budget at 12.30pm

It’s also got a big f**k off sovereign wealth fund and a highly productive workforce.

Apples and oranges.

Every time tax goes up, tax revenue goes down.

Remember when Labour said there was no money left when they were bites out? The last thing they did was raise the upper tax limit from 40% to 50%. They knew what it would do but left a political bony trap as they new the next government in would have to lower it.

Exactly, the laffer curve is a principle, it doesnt say where the sweet spot is.

Also you harpoon yourself if you point to the laffer curve and then say if you say 'Every time tax goes up, tax revenue goes down'. The laffer curve disagrees with that.

Tax revenue didn't fall when VAT rose to 20% as a simple example.

Clearly it was a joke, debt has increased 50% since and will have more than doubled by the end of this parliament.

Perhaps you should write to Rishi and say you know how to raise tax revenue, cut corporation tax to 3% and raise the personal allowance to £35k.

Reply 61

Quady

20

Original post by MatureStudent37

It’s also got a big f**k off sovereign wealth fund and a highly productive workforce.

Apples and oranges.

Every time tax goes up, tax revenue goes down.

Remember when Labour said there was no money left when they were bites out? The last thing they did was raise the upper tax limit from 40% to 50%. They knew what it would do but left a political bony trap as they new the next government in would have to lower it.

Exactly, the laffer curve is a principle, it doesnt say where the sweet spot is.

Also you harpoon yourself if you point to the laffer curve and then say if you say 'Every time tax goes up, tax revenue goes down'. The laffer curve disagrees with that.

Tax revenue didn't fall when VAT rose to 20% as a simple example.

Clearly it was a joke, debt has increased 50% since and will have more than doubled by the end of this parliament.

Perhaps you should write to Rishi and say you know how to raise tax revenue, cut corporation tax to 3% and raise the personal allowance to £35k

Reply 62

CatusStarbright

OP

22

Original post by Quady

How....?

Like what was in the budget that squeezed the middle more than anyone else?

I never said that was happening here. We're basically on a mad spending spree at the moment.

Reply 63

MatureStudent37

13

Original post by CatusStarbright

I never said that was happening here. We're basically on a mad spending spree at the moment.

Required unfortunately. Some people will advocate government involvement. Some people will advocate free market economics.

The last time this happened in the U.K. was at the end of WW1, nobody knew what was going on, there was little to no understanding from a scientific background of what was happening, pore medical knowledge of how to tear it and a focus on trying to win a war which at the time, it looked liked we might lose.

Part of me thinks about had we had no government intervention on spending then there’s a good chance we may have collapsed the economy naturally for various reasons.

The governments response seems to be in line with most other countries. Everybody’s taken a financial hit.

We’ll do what we normally do when huge amounts of debt are out on the books. Deflate the currency a bit and kick the van down the road for future her actions to pay off.

Reply 64

Quady

20

Original post by MatureStudent37

The governments response seems to be in line with most other countries. Everybody’s taken a financial hit.

Are there any countries with a higher deficit to gdp ratio?

Reply 65

MatureStudent37

13

Original post by Quady

Are there any countries with a higher deficit to gdp ratio?

Quite a few by the looks of it. T

https://worldpopulationreview.com/countries/countries-by-national-debt

https://www.gfmag.com/global-data/economic-data/public-debt-percentage-gdp

Everybody seems to have taken a hit.

My concern is how much Germany is bank rolling other EU countries as well as making sure they have to buy german manufactured for profit vaccines.

(edited 3 years ago)

Reply 66

Rakas21

21

I think Quady was talking of the fiscal deficit, not debt.

The answer is that at 17% there won't be many but unlike 08/09 there are no major structural flaws and most of the spending is one off, hence why it drops markedly and quickly (to about 3%).

The actual deficit to worry about is only about 80bn.

Reply 67

Quady

20

Original post by MatureStudent37

Quite a few by the looks of it. T

https://worldpopulationreview.com/countries/countries-by-national-debt

https://www.gfmag.com/global-data/economic-data/public-debt-percentage-gdp

Everybody seems to have taken a hit.

My concern is how much Germany is bank rolling other EU countries as well as making sure they have to buy german manufactured for profit vaccines.

Both those links are about debt to gdp, not deficit to gdp.... did you realise that?

I know other countries have higher debt to gdp ratios, but thats not particularly relevant.

Are there any countries with a higher deficit to gdp ratio? I'm not aware of any.

Italy as an example has roughly half the deficit to gdp ratio of the UK, they have a higher debt ratio, but have for decades.

Reply 68

MatureStudent37

13

Original post by Quady

Both those links are about debt to gdp, not deficit to gdp.... did you realise that?

I know other countries have higher debt to gdp ratios, but thats not particularly relevant.

Are there any countries with a higher deficit to gdp ratio? I'm not aware of any.

Italy as an example has roughly half the deficit to gdp ratio of the UK, they have a higher debt ratio, but have for decades.

Nobody seems to report that financial measure from what I can see. Therefore it may be difficult to compare.

debt to gdp ratio does seem to get compared Between counties.

invikisky the higher the deficit to quicker your debt increases .

Reply 69

Rakas21

21

Of those that have reported thus far it looks like Canada have the steepest fiscal deficit increase next to us.

Reply 70

Rakas21

21

Original post by MatureStudent37

Nobody seems to report that financial measure from what I can see. Therefore it may be difficult to compare.

debt to gdp ratio does seem to get compared Between counties.

invikisky the higher the deficit to quicker your debt increases .

Trading economics compares the deficits (they call it government budget).

Chancellor delivers Budget at 12.30pm

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