How Depressing!

[WBA123]

Tesco's pre-tax profit for the 12 months to February 2023 was approximately £1 billion, which was less than half of the previous year's profit. More recently, the company is forecasting annual profits of £2.9bn to £3.1bn for the year to February 2026.

Above copy pasted from Google.

So companies are making some dosh, whose pockets are being lined up? Nothing against tesco, but apply this logic to companies not paying their bit. Where is the money going?

I’m sure last time the inflation was caused by people buying more bread and chocolates, surely our economics model is broken. Also why are we paying £50B in interest to banks for money printed? When this rate of interest could be reduced?

If anyone wants to leave should be allowed to leave, they can take their business elsewhere- but please leave your passport behind - you ain’t being allowed back in.

The problem with tax increases - they never tell you for how long for? They can’t even calculate how many years it would take to get out the mess. Why not? I find this bizzare. Suppose the debt, or amount to bring us back to a certain level was £100B.. as a one off - surely as a proposal/truce the gov says we all need to chip in for this one off payment. A real truce to avoid tax increases - reason it won’t happen is because the whole thing about the debt is probably a lie.

Hello Regis, been a while and hope you're keeping well.

In terms of this, Tesco's profit margin is 2%. Yes they make a lot of profit in terms of the figures, but looking at their margin I wouldn't exactly call 2% profiteering. Its a well run company that is absolutely huge in this country.

And as for people leaving, I'm on the opposite side of the fence. We need to incentivise high earners and entrepreneurs to stay. We want these people paying to stay to pay tax and help grow the economy. The more that tax is increased the less it incentivises them to stay.

What we need to look at is what will actually net us the most of tax received? It might mean more competitive corporation tax rates, or decreasing the top rate of tax. I read somewhere that the most amount of corporation tax received by the Govt was when it was at its lowest, at 19%. This entices foreign companies in to invest in this country and create jobs. It gives smaller business directors more available cash to invest or spend in the economy.

We already have a progressive tax system, which is the way it should be. But its starting to favour the lower earners now. A 20k salary means you are paying around 10% in tax, but a 200k salary is around 42% in tax. We are penalising people from earning more and paying more in tax once they hit particular thresholds, which is wrong.

The whole tax system needs a complete overhaul. Its not fit for purpose anymore.