Hi All,
Despite the fact that Starmer has much greater media support and tactical savvy than Corbyn, they are both socialists run mad.
In the latest sign that the Labour party leadership have not learned their lessons from their crushing defeat at last year's general election (Labour members by contrast are still as far left as they come).But anyway the Labour leadership are now suggesting a wealth tax because of covid and the predicted £300 billion deficit and national debt of 100% of GDP. This is just Socialism run mad and like most socialistic theft by taxation it simply won't work or only effect billionaires.
A wealth tax is a tax on assets , rather than income. Assets can be liquid or illiquid, generally liquid assets are cash and cash equivalents (assets than can be quickly translated in £). An illiquid asset is something which is of value , but can take time in become hard cash, the most obvious being property (you house if you own it or it could be art or even wine).
Thus if you have a wealth tax at 1% it gives the government permission to take £1 for every £100 you have saved. If you own a property, with a mortgage, at £230,000 , UK average price, you will have to cough up £2,300. If you own shares, for savings or a pension you would also have a tax grab by the government. That doesn't sound a lot because it's percentages, but imagine if it were pitched at 20% like income tax , so on your average priced house you have to cough up £46,000.
If you are renting you might think that won't bother me, except landlords will pass on this by rent increase or by being forced to sell the property as they don't have the liquid cash to pay for the asset tax and new owners inevitably increase rent . Same with assets such as shares, which means you have less of a pension pot. Then multiply that by millions and the asset which is being taxed will decrease- because of the simple mechanism of supply and demand- in value as every one tries to scramble to get cash to pay the tax.
In any event genuine billionaires , by the time it's clear Labour will be the government, will have already moved their liquid assets outside the UK into tax havens and will have found a way out of paying an asset tax on tangible property. The lawyers and accountants will have a good day.
In short an asset tax is socialism and not moderate blairite policies, when Labour won 100 seat majorities. It will help equality. Equality in bringing all people to poverty and worse standards of living that we have right now.
Despite the fact that Starmer has much greater media support and tactical savvy than Corbyn, they are both socialists run mad.
In the latest sign that the Labour party leadership have not learned their lessons from their crushing defeat at last year's general election (Labour members by contrast are still as far left as they come).But anyway the Labour leadership are now suggesting a wealth tax because of covid and the predicted £300 billion deficit and national debt of 100% of GDP. This is just Socialism run mad and like most socialistic theft by taxation it simply won't work or only effect billionaires.
A wealth tax is a tax on assets , rather than income. Assets can be liquid or illiquid, generally liquid assets are cash and cash equivalents (assets than can be quickly translated in £). An illiquid asset is something which is of value , but can take time in become hard cash, the most obvious being property (you house if you own it or it could be art or even wine).
Thus if you have a wealth tax at 1% it gives the government permission to take £1 for every £100 you have saved. If you own a property, with a mortgage, at £230,000 , UK average price, you will have to cough up £2,300. If you own shares, for savings or a pension you would also have a tax grab by the government. That doesn't sound a lot because it's percentages, but imagine if it were pitched at 20% like income tax , so on your average priced house you have to cough up £46,000.
If you are renting you might think that won't bother me, except landlords will pass on this by rent increase or by being forced to sell the property as they don't have the liquid cash to pay for the asset tax and new owners inevitably increase rent . Same with assets such as shares, which means you have less of a pension pot. Then multiply that by millions and the asset which is being taxed will decrease- because of the simple mechanism of supply and demand- in value as every one tries to scramble to get cash to pay the tax.
In any event genuine billionaires , by the time it's clear Labour will be the government, will have already moved their liquid assets outside the UK into tax havens and will have found a way out of paying an asset tax on tangible property. The lawyers and accountants will have a good day.
In short an asset tax is socialism and not moderate blairite policies, when Labour won 100 seat majorities. It will help equality. Equality in bringing all people to poverty and worse standards of living that we have right now.
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