Wednesday, 6 April 2011

Worse off wednesday

As we progress through April we will start to feel the affects of what this tory government are doing with the economy. Today the 6th of April has been dubbed "worse off wednesday" due to so many loosing out and feeling worse off as a result.
Among the changes to come into effect on Wednesday are a 1% rise in employees' National Insurance contributions - a measure first announced by Labour in December 2009 but which the government decided not to reverse.

Other changes coming into force include a £1,000 rise in the threshold at which people start paying income tax to £7,475, which means about 500,000 people will no longer pay tax on their earnings, according to the Institute of Fiscal Studies.

There is also a freeze on the inheritance tax threshold, an extra 5% on stamp duty for homes worth more than £1m and restrictions on tax relief on pension contributions for those on more than £150,000 a year.

All thse tax changes will most likely leave working class people far worse off than before as they see a pay freeze and in most cases a loss of their job that they rely on so much to get by.

The rising cost of living will also compound the misery for many across the UK today. With the price of petrol and oil to fill up your car rocketing even higher despite what pittance of tax the tories took off it at the budget the other week.

The Low Incomes Tax Reform Group said those earning more than £40,000 would be hit most by the rise in national insurance but those on less than £20,000 would not be affected.

The Child Poverty Action Group said it was a bad day for low-income working families.

"If you have a new child tomorrow - a second child - you could be about £1,500 a year worse off than somebody who claimed yesterday," chief executive Alison Garnham said.

She cited a combination of factors including the loss of the baby element of tax credits, health in pregnancy grants, the Surestart maternity grant, and the increased rate at which tax credits were withdrawn after earning £6,000.

Ministers say that delaying any tax and benefit changes would only force the government to make bigger cuts later, affecting the poorest in society.

Chief Secretary to the Treasury Danny Alexander said they were seeking to concentrate help on "the most in need" and that the top 10% of households would suffer the most as they do not gain from the rise in personal allowances and would pay the most increased NI contributions.

ALl this adds up to a very grim day for the poorest in society and as usual it is us at the bottom, the working class who are having to pick up the tab for the rich and the bankers mistakes at the top.

Not one polititain today has come out today and highlighted the real root of this problem or associated why we are where we are today and that is capitalism . The capitalist system is broke and needs repairing, not in my view it needs over throwing but that's for another post no doubt but this rotten unfair system is why we are where we are.

One of the many contradictions with capitalism is in its drive for more and more profit it often makes a surplus and much more than it actually needs leading to a state of over production. This is what happened in 2008 where mortgages and loans and government borrowing kept going up and up and up and in the end people were defaulting on their repayments having no eralistic way of paying these back this included the banks who crashed to the floor along with the whole of the capitalist system.

Not one polititian today has come out to raise this point at all that it is a systematic problem with the system we live under why we are where we are that the rich are getting richer and the poor as usual under capitalism are getting poorer. Which brings me back to worse off wednesday.

As April rolls into may and may into june we will start to feel the pinch of the public sector cuts. People havent seen anything yet. I dont wish to scare people but this is going to be a very tough year for many. Many will be made homeless and many will loose their job, These are the facts.

So while labour hypocritically blast the tories on these cuts and tax changes it was they who threatened us with cuts going further than Thatcher ever did. So lets not take any economic lessons from them as you can bet your bottom dollar they would be cutting just as much if just over a longer period. It would be no less painful on those who did not cause this mess though.

So when we feel our incomes going down, our notices beign handed to us and we cant afford to eat as much as we did lets just rmemeber the real problem here and that is capitalism which for everyones sake must be terminated and whole of society must be changed. Only under socialism, true socialism not labours dressed up version which they claim they can cut fairly which is a joke quite frankly but real socialism where the economic power is not in the hands of a few but the many will we start to see a fairer all round society.

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