Cameron makes savings tax pledge

chewmylegoff

Masomnia wrote: »

People with ~£1million in savings are not those we should be focusing on.

yeah, no !!!!!!.

ManAtHome

Rochdale_Pioneers wrote: »

One one side you have the Labour Party. The IMF. The World bank. The EU. The CBI. Nobel-laureate economists.

Only one of that group would rather give multi-millionaires a VAT reduction on their yachts, expensive cars, and gold-sprinkled quails tongues than give a few quid to the people with savings (who you seem to think are "the already well off"...).

ps - maybe 2, missed the CBI...

Addiscomber

Rochdale_Pioneers wrote: »

Not sure how it helps allieviate our part of the global recession - doesn't get people spending money so helping liquidity. Doesn't keep people in jobs. Doesn't do very much apart from help those people lucky enough to have large savings keep money locked up out of use.

Pensioners are the sort of people that this would help. They tend to be the people with savings, and they use the interest as part of their income, to spend on day to day living. The money is not "locked up out of use" because the bank or building society has that money to lend out. That is where the money to pay the interest comes from. The bank/building society is the middle man taking a commission for that service, which is the difference between the rate they charge borrowers and the rate paid on savings.

Whilst the interest rates on savings are very low those people who depend on income from their savings are going to be spending less in the shops as they simply won't have it to spend.

Throughly agree with those who say that this policy is a signal that saving is good. Something that has been discouraged for far too long.

overlander

I think the whole point Cameron is making is that saving is better for us. And he also makes the point that saving and not spending on tack will stand us in a much better position than the spend spend spend Brown idea. At no time does he say it will get us out of the mess, only a fool would do that there is no easy way out of this mess but the message from the tories is clear spending is not the way out.

Rochdale_Pioneers

overlander wrote: »

the message from the tories is clear spending is not the way out.

Which as I pointed out above is where they disagree with the rest of the world.

chewmylegoff

overlander wrote: »

I think the whole point Cameron is making is that saving is better for us. And he also makes the point that saving and not spending on tack will stand us in a much better position than the spend spend spend Brown idea. At no time does he say it will get us out of the mess, only a fool would do that there is no easy way out of this mess but the message from the tories is clear spending is not the way out.

well, labour have announced that they will match each pound low earners save up to a max of £375, starting in the next tax year i think.

that is more likely to encourage people to save at the moment than telling them that they can keep 20% of the 3% interest they earn on any savings over and above the ISA limit.

of course when we see the real details of the labour scheme it will also be pretty useless i expect. probably restricted to people on incomes so low that they can't afford to save.

overlander

Rochdale_Pioneers wrote: »

Which as I pointed out above is where they disagree with the rest of the world.

But the rest of the world have no where near as much debt as we have, the days of spend spend are over and I for one will be glad to see the back of it.

overlander

chewmylegoff wrote: »

well, labour have announced that they will match each pound low earners save up to a max of £375, starting in the next tax year i think.

that is more likely to encourage people to save at the moment than telling them that they can keep 20% of the 3% interest they earn on any savings over and above the ISA limit.

of course when we see the real details of the labour scheme it will also be pretty useless i expect. probably restricted to people on incomes so low that they can't afford to save.

Yes but i am sick to death of hearing about people on low incomes. What about the backbone of the country people earning middle incomes what about them, at least Camerons idea will help them. Enough of all this pc crap middle income people are hurting as well.

cogito

Tax should not be payable on interest earned on savings out of income which has already been taxed. End of.

StevieJ

The ISA does not only allow tax free savings it restricts the amount of income a pensioner has when claiming age allowance i.e. the allowance is restricted £1 for every £2 that income goes above a certain level. The Tory plans may put people off using the ISA and cost them when they retire, just a thought.