Quote:
Originally Posted by Mick
Just a quick summary of some of the things announced in today's budget:-
- Corp. Tax cut by 2% from April and further 1% per year for 3 years.
- Income Tax and National Insurance to merge but could take years.
- Labour's planned increase in Fuel duty cancelled. 1p Cut in Fuel duty from 6pm tonight. Fuel Stabilizer to be put in to place.
- Business Milage rates from 40p to 45p.
- Air Passenger duty rise delayed until next year.
- Council Tax Frozen in every England Council.
- New Private Jet Tax Budget Introduced.
- Personal Tax allowances increased this year by £1,000 to raise to £8,105 in 2012.
- 50p Tax rate for highest earners a temporary measure. Osborne wants to see if it actually raises enough for the coffers.
- £100 Million to Fix Britains Roads and pot holes.
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thanks for the list, to me what stands out is a corp tax rate drop which wont be effective other than to reduce tax intake when we supposed to be closing a deficit, and the merging of NI with income tax.
On the latter is the most interesting as NI was originally created to specifically fund pensions and incapacity benefit, recent changes to IB will almost demolish it as a benefit as long term plans are to kick most people of it and overall NI still has a large surplus used for other purposes so in effect NI has become a generic tax source so the merge makes some sense I guess. However thinking about it a bit more this comes a tax cut by stealth to corp's again as currently companies pay half of NI themselves whilst the employee pays income tax. So it will be interesting to see how a migration is handled, would people in effect see a net salary reduction taking over the company part of NI as income tax or will it be handled in a manner where the average worker doesnt lose out.
On the corp tax people may (rightly) feel all the aggressive cuts going on in social services etc. are simply a way of shifting money to corporate profits with this tax cut.