What Will Be The Effect If Scotland Can Set It's Own Tax Rates And Thresholds?

[JackKnife]

http://www.bbc.co.uk/news/uk-scotland-scotland-politics-30220017

[ludwig]

It'll probably reduce them.

[THECORBYLOON]

"The commission on devolving powers to the Scottish Parliament is to recommend it has full control over income tax rates and bands, the BBC understands.

But the report is not expected to call for personal allowances - the threshold at which tax is paid - to be devolved."

If there is control over the bands and rates, there could be a band with a zero rate which would have the effect of increasing the personal allowance.

[woofgang]

I suspect there will have to be some kind of sliding scale to say that if tax rates and thresholds are x percent less than the national norm, then if the area contributes less to central gov't then they will get that percentage less back in any grants etcet.

[New Judge]

Presumably England will be able to do the same after the abolition of the preposterous Barnett formula.

[THECORBYLOON]

There are already powers to vary the income tax rate in Scotland by 3% but it has never been used.

[JackKnife]

How would it work, what if I live in England and work in Scotland? companies will have to have different PAYE rules depending on residency for example.

[Gromit]

Good to have you back ToraToraTora.

[douglas9401]

Any differences will only be there for the duration of an SNP dominated parliament. The rest, if they manage to achieve a majority, will do what their Westminster bosses tell them.

[youngmafbog]

Well I hope JK is TTT Gromit or you lot will go persecuting another poor s*d who hasn't a clue what he has done.

If you are TTT, welcome back after the ganging up of the right-on left on you and managing to get their voice heard by silencing you. If not, sorry mate and welcome to AB.

[youngmafbog]

To answer your question, I think it will cause trouble in the rest of the UK that subsidizes the sweaties.

But still, once the SNP has annihilated labour in Scotland and got a load of seats in Westminster they will form a coalition with them and force another referendum. This time they will win so problem solved.

[Quizmonster]

The reason the recent Independence referendum went ahead was that the SNP became a majority government in Scotland at the last general election there and independence was part of their manifesto before it. There is zero chance, I'd imagine, that the same manifesto-pledge will be absent next year, when the next such election is held. As a result, there is no reason at all why another referendum should not take place at some time thereafter, if the SNP remains in overall power.

[Quizmonster]

Sorry, 2016 is the year for the next Scottish general election, not "next year".

[scooping]

This makes an independent Scotland inevitable, exactly the opposite of those who made 'The Vow'.

[dave50]

They will be bankrupt in a few years due to their ridiculous socialist spending plans.