Cameron to scrap taxes on savings (basic rate only)

nilrem_2

arealhighlander wrote: »

Cameron isn't SCRAPPING anything. He can make all the promises and spout whatever he wants - he cannot do any of it, he is not in the Government!

True and IMHO Gordon Brown has been considering something along these lines anyway, he said in a interview on Sunday that he was looking to help savers in the near future, I wonder if the Tories have wind of this and decided to get in first?

Andy_L

casper_uk wrote: »

No once again people fail to grasp what this is about. This will only work for people paying the basic tax rate!.

And if all I have is that £2mill in the bank then,at current interest rates, I will be a basic rate taxpayer, assuming I have no other income: hence the "sit on my bum" comment.

Reaper

Blah99 wrote: »

I know you think this is right, because you've been sucked in by Labour's spin and poor media reporting. Unfortunately the best thing for people, individually, to do in this situation is to save as much as they can. In the current climate very few people are financially secure (mortgage loan-to-value problems, job security, excessive debts from previous years etc) therefore, to minimise further impact, everyone should be saving as much as they can.

Perhaps I should have made myself clearer - I was saying what was best for the economy.

You are right for individuals the sensible thing to do during uncertainty is tighten belts and save, but unfortunately that is not what is best for the economy (if you accept Keynesian rather than Monetarist economics) which is why the government is trying to make that strategy less apealing.

The current policies may soon succeed on me as savings are looking increasing unattractive and investments more appealing.

The proposal would be great for me personally but I still think it is wrong.

Inactive

dougs wrote: »

Jeez! If he says nothing he gets accused of having no policies and being the "do nothing" party. If he says something he gets accused of "blatant electioneering".

People (and the Labour party who do most of the shouting down) should make up their minds whether they want him to say something or say nothing. You can't have it both ways :rolleyes:

He didn't say much to George Osborne when he got found out swanning it with a Russian Billionaire off the coast of Corfu.:rolleyes:

I wouldn't trust Osborne with a book of used stamps, let alone the economy.

LesU

Inactive wrote: »

He didn't say much to George Osborne when he got found out swanning it with a Russian Billionaire off the coast of Corfu.:rolleyes:

I wouldn't trust Osborne with a book of used stamps, let alone the economy.

Is that the same billionaire that Chief Puppeteer Mandelson was also swanning about with when he held some 'minor' function, such as EU trade commissioner?
I'd certainly trust him. I'm sure Gordon can keep him under control.

nicko33

Andy_L wrote: »

And if all I have is that £2mill in the bank then,at current interest rates, I will be a basic rate taxpayer, assuming I have no other income: hence the "sit on my bum" comment.

You can easily get 4.75% in currently available easy access accounts
so how does £95,000 income make you a Basic Rate taxpayer ?

ING 5% (up to 1 million)
ICICI 4.5%

you can even get 4.1% from NS&I for 1 mill in the Guaranteed Growth Bond if you want a "secure" bank

Andy_L

nicko33 wrote: »

You can easily get 4.75% in currently available easy access accounts
so how does £95,000 income make you a Basic Rate taxpayer ?

ING 5% (up to 1 million)
ICICI 4.5%

you can even get 4.1% from NS&I for 1 mill in the Guaranteed Growth Bond if you want a "secure" bank

whoops, that should have been 1mill shouldn't it. I suppose I could try and claim I meant 2 mill for a couple but I can't see me getting away with that.

Inactive

LesU wrote: »

Is that the same billionaire that Chief Puppeteer Mandelson was also swanning about with when he held some 'minor' function, such as EU trade commissioner?
I'd certainly trust him. I'm sure Gordon can keep him under control.

Indeed, but Mandy isn't likely to ever be in charge of our economy, unlike Osborne.:rolleyes:

sdooley

opens a can of worms - if savings income is untaxed but pension income is taxed how is that fair - if income from labour is taxed at a far higher rate than other income that further discourages capital from being employed in hiring people / not firing them

earlgrey_3

sdooley wrote: »

opens a can of worms - if savings income is untaxed but pension income is taxed how is that fair

Would tend to agree but there has often been a degree of unfairness with tax on small savings too. If for example someone gets 3% interest but inflation at 5% leaves him 2% worse off then taxing the 3% interest as if it is a "gain" is a tad unfair. (Was still worse when we had inflation in double figures so low interest rates with low inflation could actually be better for savers.)