Income Tax Is Not The Only Tax
I have talked before about the overall level of income tax and the amount that is levied by successive governments. And as I write this article in September 2016 it is clear that Government spending is probably going to go up now that we are leaving the European Union.
However, the truth remains to be seen. We do know that many government departments, like the NHS are struggling to find the money they need to survive. It’s also clear that many government departments also facing reductions in their spending limits.
So what does this mean for you and I, we already know that lifetime taxation has been increasing substantially, we also know that the Treasury want to decrease Corporation taxes and indeed this has already been mooted in the recent Budget statements.
So let’s look at how this increase in spending will affect you.
Of course you can expect increased levels of income and personal taxation and you can also expect rises in inheritance taxes and possible increases in levels of council tax; combined with a reduction in spending.
Personally, I don’t like to think this will happen however the evidence seems to support contrary. No matter what flavour of Government we eventually end up with in future years we know full well that government borrowing has been increasing massively. The Government has only one source of income, which is a taxation therefore if the government borrows more this debt has to be repaid and therefore taxation will have to increase.
I have produced several working documents over the last few months talking about this very subject. These are linked below.
No matter which way you look at things, income and general taxation will have to increase to support the vast amount of borrowing that is going on. Further with personal borrowing also at record levels there seems to be some kind of ‘double whammy’ working against us. It’s for these reasons the work I am doing over here at MoneyTrainers is even more important.
For more information about lifetime taxation, my article about Alison Average and ordinary working women is linked below.
Let Me Ask You This…
Do You Think Taxation Is Going To Increase Or Decrease In The Coming Years?
You can find out some more by joining me on the Meetup or at the Indigo Umbrella Gigs in September.