Unit 4
There have been some changes in the funding of public sector pensions. An extra 1 billion pounds will be available for Chancellor George Osborne to use. Osborne could use the money to help out the poor sector in the UK. The plan is to raise the tax-free personal allowance, letting the people earn more money before paying taxes. But some former Tory Chancellors have been pressuring Osborne to use the money to help out the squeezed middle class. They are trying to get Osborne to raise the threshold at which the higher rate 40 per cent tax band kicks in. Former Conservative Chancellor Lord Lamont said, "There is an argument for giving relief at the bottom. But is that going to be at the price of really squeezing the centre....[They are] just earning 40,000 pounds? That is not a lot of money." The extra money is coming from a change in pension rules. The Chancellor is expected to help out the low income workers.
I think the Chancellor should help out the middle class. A strong middle class is very beneficial to society. If the Chancellor could give the middle class a little bit of help with this extra money, I think that the long-term effects on the UK society would be very good.
http://www.express.co.uk/news/uk/465004/Give-1billion-tax-cut-to-middle-earners-say-former-Tory-Chancellors
Ah. The lower class demanding more wages in England again? :)
ReplyDeleteMore pensions, more people spending money, more stock gains, more money for people in general. I think that the lower class needs the money. Yes, the middle class needs it, but the lower class is still growing in the UK. If that class stops growing, then money can be focused on the middle class.
I don't know much about how the UK is doing economically but I really think that the middle class should be relieved with whatever this is going on. But maybe the lower class needs it more. Whoever it can be given to and help the overall country more maybe that's the way to go.
ReplyDeleteI think you are right Aaron, that the lower class definitely needs to be helped out. But the question then comes, what will help them most? Will boosting he middle class open up positions and money for the lower class? If so, wouldn't that be the more useful option? I think that this is definitely a much more in depth question than it seems like it is on the surface. Trying to predict outcomes from stimulation like this is tricky, but can be bee beneficial when done right. I think they need to figure out what will help everyone the most first, and put the money there.
ReplyDeleteBut Nathan, doesn't the middle class influence your economy the most. I don't think that helping the lower class would help as much as helping the middle class.
ReplyDeleteBut I do agree with you Aaron. The lower class has to get smaller before they can start helping the middle class. All that is happening is that middle class workers are moving down to lower class.
ReplyDeleteI agree with Aaron as well... the lower class definitely needs to be helped before the middle class but Rooney is also right that the middle class influences your economy the most! A little money never killed nobody haha.
ReplyDelete