Protecting pensions from politicians - or preparing for a Labour coalition
Comments
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woolly_wombat wrote: »There's a big difference between maximising legal tax shelters such as ISAs and pensions and 'hiding savings'.
Having said that, some of us are just about old enough to remember a former Shadow Chancellor warning in 1973/74 that there would be "howls of anguish from those rich enough to pay over 75% on their last slice of earnings" and that he would "squeeze property speculators until the pips squeak".
When he was Chancellor he was forced, in 1976, to go cap-in-hand to the IMF for a loan.
Yes, I too am old enough, to remember 'the best Prime Minister we never had'
https://en.wikipedia.org/wiki/Denis_Healey (AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
A Robin Hood tax would of course affect pensions and ISAs as much as it would unwrapped funds - we can safely assume they would not be able to reclaim it. It would be the Gordon Brown Tax Grab II: Grab Harder.
The only way to avoid it would be to have your money invested completely offshore. And we return to the problem that investing offshore is usually very tax-inefficient for a UK investor, unless you plan on living offshore as well.0 -
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I can't see the much further left Momentum crew not planning something much more draconian - especially as higher taxes for top earners would otherwise see even more incentives for income diversion into pensions. And of course his backers in the public sector unions are protected with the only remaining final salary schemes so a win win for the union barons.
Not quite true - there are some private company final salary schemes that are still very much alive and still in the black.
Still think pensions are the best investment at the moment.0 -
EnglishMohican wrote: »You are not alone, we all work to provide for the country as short of emigrating, we have no choice in the matter.
What percentage of tax one pays depends on how much income one has and how much you spend on buying things. So if you happen to earn £10000 per year, then increasing your tax payment by 10% is not very generous.
If you happen to receive a huge amount of income, then you probably have enough money not to notice the reduction in your standard of living if you paid 10% more tax so still not very generous of you
If you happen to be on say £22000 and struggling to pay a mortgage, feed and cloth your family while holding down a tough job then paying 10% more tax than at present would be very generous.
so if I understand you correctly, someone earning 22k would be struggling more than someone earning 10k?
Struggling is not struggling to buy toys, pay for premium tv, or funding a second car, when we talking about bare essentials someone on 22k is not going to be struggling. for reference my average earnings are 15k-20k range.
Ultimately the more one earns, the less 10% means to them as the other 90% is a bigger number.
Not to mention the government is not asking for 10%, they not even asking for 1%.
If you think life is hard on 22k, try living on 5k. 0 -
And the IOM would be a very stupid place to attempt to hide money offshore because there are so many reporting channels to HMRC.
The IOM is now FATCA'd up the backside. They give info to any govt that asks. Incl the USA.0 -
so if I understand you correctly, someone earning 22k would be struggling more than someone earning 10k?
If that is your understanding then I suggest you read what I wrote again.
Effectively, I said that somebody earning £10000 could offer to pay an extra 10% income tax at no cost to themselves. Not really very generous.
Somebody earning 100k would end up paying an extra £3k (given my maths is roughly right). I am glad you agree with me that that would not reduce their standard of living by anything very basic.
It is the people in the middle income group (my 22k example) who lose out on the more crucial parts of their standard of living........for reference my average earnings are 15k-20k range. .......
So in very rough terms you are offering to contribute an extra £100 per year. But we do not know your circumstances to evaluate what that means to you. (I do not expect you to provide them - it would be too intrusive.)
If you have a recent university degree then on your present salary, the rest of us are going to end up paying for your education - that would not be the case if you earned 22k.
You pay less NI than somebody on 22k and depending on your situation you kind offer might result in you receiving extra benefits that more than compensate for your £100.
Clearly, I do not know your circumstances and you could be making a very generous offer - my respect in that case.
But advocating an increase in income tax when you are at the end of the pay spectrum that is most likely to receive the benefits of that extra government largesse without paying much towards it does not make you a better person than the OP wanting to retain his/her money to allow them to pay their own way.0 -
Tax is rarely popular, but noting that income tax was originally introduced to finance war with the French is popular with some!0
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Anonymous101 wrote: »Bloody hell at this rate it'll be taxed every time its moved from one form of saving / investment to another! :money:
You mean like a Robin Hood / Tobin tax?
The very clear message is that only spending all your money straight away is to be encouraged, any form of saving means you clearly have more money than you need so it should be taxed again (and again etc etc)I think....0 -
Tax is rarely popular, but noting that income tax was originally introduced to finance war with the French is popular with some!
Good one lol.
Last summer I had to go back to france and my gite and try to explain to my neighbors the whole brexit thing.
Now they will ask me to explain this debacle. Oh yeah, and the trump thing. That is a whole other sh*t bomb.
Maybe i shouldnt take my summer holiday? I might spend the whole time trying to explain the unexplainable to french people? My french is OK, but not sure it is good enough for that.0 -
Maybe i shouldnt take my summer holiday? I might spend the whole time trying to explain the unexplainable to french people? My french is OK, but not sure it is good enough for that.
The french people I spoke to understand brexit better than the 52% of people who voted to leave. They just laugh at the stupidity, which does nothing to pursuade the 52% that it was an epic fail. However if you can't laugh then you do stupid things like pretend you're better than other people.
Labour aren't going to be raiding pensions any time soon. There are too many right wing elite pulling the strings.0
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