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Re: [Fsfe-uk] Cheats!

From: Simon Waters
Subject: Re: [Fsfe-uk] Cheats!
Date: Sun, 05 Feb 2006 12:47:00 +0000
User-agent: Debian Thunderbird 1.0.7 (X11/20051017)

Ian Lynch wrote:
> On Sat, 2006-02-04 at 10:46 +0000, Simon Waters wrote:
> The reason they aren't combined is because people would see a true
> basic rate of income tax over 30%.

The effect on overall income tax rate is surprisingly blunted by the
National Insurance ceiling (£630/week, when employee contributions drop
to 1%, Browns secret tax rise), and that Income tax is paid on all
(taxable) earnings not just wages. As a result you can replace what is
effectively a headline NI rate of 22% with a very modest rise in the
headline income tax rate, the headline rate may not even be over 30%.

> There is a political reason too. No politician wants to be associated
>  with Headlines saying income tax rises to 35% or whatever.

No that could be spun away, it is the winners and losers that make it
politically impossible.

Winners - people on low to median salaries, companies
Losers  - people who own companies, people living off capital (rich, and
some retired folk), accountancy firms.

Brown had a go with removing the ceiling on 1% of National Insurance,
although of course that still doesn't affect the idle rich.

Of course overall a more efficient tax system benefits everyone.

> Well the present government seems to have decided to get rid of a big
>  section of the Civil Service so I don't see that this is really a
> tablet of stone.

Have they succeeded?

Total Civil Service numbers did decrease last year, by 3000 (I've yet to
see where the savings were made), or about half of one percent, although
it should be noted this is after a rather large growth in the last 5
years. Some of the departments came back saying they can't lose anymore
<they must have a good sense of humour at Whitehall>.

Don't get me wrong I think most civil servants do a good job, but I
doubt the ability (or perhaps will) of the government to make dramatic
cuts in the Civil Service, inspite of having made dramatic increases in
the past.

> So get a MAC vendor to complain to the OFT that they are being
> excluded from the market.


>> I think Ian is probably on the mark, the contract should have been 
>> pushed to open tender, and in answer to who can afford to dispute
>> it - I'd suggest IBM, SUN or Novell as likely candidates.
> When I pushed this point I got stone-walled to a certain extent -
> no-one was going to cause a big stir - but I noticed that the next
> time, Sun was involved and did sell the NHS some Star Office
> licenses.

Sounds like the idea stuck.

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