Inflation is a tax

Well the reality of inflation causes an indirect tax increase on us all. E.g. The amount of VAT that we all pay does increase too along with the price of goods themselves. Many lose spending power when inflation rises leaving us less in our bank accounts. As uncomfortable as it is, inflation is right to be targeted. However, he and his colleagues and the various governments he has served in are in part to blame for causing it in the first place, which he casually forgets to mention.
 
Inflation is not a tax.

It’s just another strange comment from a strange government, probably looking to blame somebody else for an inflationary economy.

Sunak started the inflation with his reckless spending during Covid. He thought he was the man in the sweet shop with a good excuse to give out free sweets and buy the next election but all that has happened is that him and Truss have sunk the economy instead.
 
Inflation reduces the value of the income of the poorest in our society - it IS a tax :mad:
 
It's not a tax, but it leads to an increase in tax if all the bands & allowances don't increase at the same rate. If only Rishi could just track down the guy responsible for setting those bands...
 
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There was more free money given away to financial institutions with quantitative easing than covid surely. That is what is coming home to roost as it devalued the pound and so the importing of goods becomes much more expensive.

Some countries devalue their currency to stop imports and boost exports but we are no where near self sufficient, so we will always have to import lots of items.

When it was first brought in it was essential to stop the flow of money drying up in 2009 but they kept it going for a long time even though lots of economists were warning against it.
 
junos_boots said:
There was more free money given away to financial institutions with quantitative easing than covid surely. That is what is coming home to roost as it devalued the pound and so the importing of goods becomes much more expensive.

Some countries devalue their currency to stop imports and boost exports but we are no where near self sufficient, so we will always have to import lots of items.

When it was first brought in it was essential to stop the flow of money drying up in 2009 but they kept it going for a long time even though lots of economists were warning against it.
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Quantitive easing is just a new term for an old (really old) concept. Open market operations (OMO) increase or decrease the amount of money in circulation by the central bank buying or selling securities to financial institutions. OMO were used in the 19th and 20th centuries to control money supply.

QE uses OMO to control the supply of money in the economy. There are other things in QE as well, but the concept is just 21st century OMO.
 
clay said:
It's not a tax, but it leads to an increase in tax if all the bands & allowances don't increase at the same rate. If only Rishi could just track down the guy response for setting those bands...
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...and freezing them
 
junos_boots said:
There was more free money given away to financial institutions with quantitative easing than covid surely. That is what is coming home to roost as it devalued the pound and so the importing of goods becomes much more expensive.

Some countries devalue their currency to stop imports and boost exports but we are no where near self sufficient, so we will always have to import lots of items.

When it was first brought in it was essential to stop the flow of money drying up in 2009 but they kept it going for a long time even though lots of economists were warning against it.
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Quantitive easing, as you say, was absolutely essential at the time, to keep banks lending. All major countries used it and in itself it is not a bad thing and need not be inflationary provided it is driving production and hence growth. The problem here is that rather than supporting the SMEs which would create that growth, the lending was largely funneled to existing asset holders thus inflating asset prices. This is because the investment of the wealthy across the developed world is now largely targeted at rent-seeking
 
coluka said:
Well the reality of inflation causes an indirect tax increase on us all. E.g. The amount of VAT that we all pay does increase too along with the price of goods themselves. Many lose spending power when inflation rises leaving us less in our bank accounts. As uncomfortable as it is, inflation is right to be targeted. However, he and his colleagues and the various governments he has served in are in part to blame for causing it in the first place, which he casually forgets to mention.
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Causing inflation such as brexit ? Now we can’t get the labour we need for the work required prices go up because people need paying more because of labour shortages and difficulties getting parts and goods from the eu costing more.
I thought brexit was supposed to bring us a higher wage economy but now the tories say high wages cause inflation….hang on…that’s how you sold brexit to the idiots who voted for it 🤷‍♂️
 
Ex Footy Legs said:
Causing inflation such as brexit ? Now we can’t get the labour we need for the work required prices go up because people need paying more because of labour shortages and difficulties getting parts and goods from the eu costing more.
I thought brexit was supposed to bring us a higher wage economy but now the tories say high wages cause inflation….hang on…that’s how you sold brexit to the idiots who voted for it 🤷‍♂️
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I’ve never supported this government on anything it has done with Brexit. You can’t blame voters for the way subsequent governments have mishandled brexit, but you will, as they are an easier target to snipe at, despite not making any of the decisions they did in the discussions. Your hero Corbyn was allegedly a Brexit supporter, you forget that he at best did nothing, terrible decisions have been made by politicians. I wanted a second referendum, I even called for a second referendum when it became obvious what May and Johnson were trying to fudge/achieve, sadly there was no ‘meeting of minds’ for people to be Ad Idem. The Norway model was the best Brexit solution If there was to be one, but if it makes you feel better trolling individuals on a message board because it makes you feel superior 🤷‍♂️ well done big man, you must feel ever so proud 💪 👏 😘
 
They're looking to deflect, that's all. Tax is high for the poor and inflation makes life difficult for many. That's only because wage increases don't match price increases.

Those represented by the Tories are driving inflation up, they can afford it. They don't want to pay their fair share in tax, which they can also afford.
 
I think he’s going to try to dress up the forecast fall in inflation as a tax cut.

He’s definitely a bit odd is Sunak, something not quite normal about him even amongst MPs.
 
coluka said:
I’ve never supported this government on anything it has done with Brexit. You can’t blame voters for the way subsequent governments have mishandled brexit, but you will, as they are an easier target to snipe at, despite not making any of the decisions they did in the discussions. Your hero Corbyn was allegedly a Brexit supporter, you forget that he at best did nothing, terrible decisions have been made by politicians. I wanted a second referendum, I even called for a second referendum when it became obvious what May and Johnson were trying to fudge/achieve, sadly there was no ‘meeting of minds’ for people to be Ad Idem. The Norway model was the best Brexit solution If there was to be one, but if it makes you feel better trolling individuals on a message board because it makes you feel superior 🤷‍♂️ well done big man, you must feel ever so proud 💪 👏 😘
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As per usual bonny lad - you are incorrect.
I was never a fan of corbyn.
I think he was well intentioned but wrong on many issues of the day and the ultra right wing media in the fcuked up country berated him.
I'm no major fan of starmer (robot - like) either but he just might get enough votes to kick out the tories but not enough for a majority which means starmer will need the support of the lid dems and promise electroral reform to appease the lib dems. electoral reform will save this country from the tories in the future so that's what I am praying for.
So, contrary to what you thought I am in favour of might I get an apology - thought not.
 
Corcaigh_the_Cat said:
They're looking to deflect, that's all. Tax is high for the poor and inflation makes life difficult for many. That's only because wage increases don't match price increases.

Those represented by the Tories are driving inflation up, they can afford it. They don't want to pay their fair share in tax, which they can also afford.
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Absolutely bang on - which is why this country is screwed - along with the thick ENGLISH (Not scottish) electorate who say, (lazily and repeatedly) 'They are all the same' When they are so clearly not the same but the Tories want simple minded people to believe 'we are all similar' because it keeps them in power to steal from our public services and line the pockets of the banks, water companies & oil companies....amongst others. And then bribe the thick ENGLISH electorate with a tax cut....and go - look, we are so great for you - don't worry that you have a rubbish health system, crumbling schools and teachers and nurses walking away in their droves, our police services is disarray after massive number cuts (and increasing them now makes no difference because all the experienced officers have retired)
 
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