Forcing Savers to spend!

ed123_2

...How about bringing back the windows tax (daylight robbery)....income tax, national insurance, vat, fual tax, road tax, car tax, airport tax, inheritance tax, stamp duty-property/shares, council tax,.....its all money they take of us....where does it go?? If they bring in a tax on savings deposits people would simplely take the money out..result increase in sale of safes/robbery...colapase of the banking system

soulsaver

My money would flow into foreign currency accounts, el rapido. It would be joined by everyone (uk) else's and sterling would collapse. Maybe that is Clown's plan... but I detect the seeds of revolution that would be sown. I know it takes alot to get us Brits on the street but that'd be one I'll be on ...demanding a general election....

Mr_Matey

Agreed, it would cause a further collapse in the sterling as money runs overseas.

Or you could just get a safety deposit box.

You can't "Force" someone to spend.

maypole

danny69 wrote: »

The sad thing is that I bet there a few people who are moaning about this who vote Labour. Vote with your feet guys and gals, otherwise things will get worse. As for house prices, I want them to fall, the recession is only a good thing for me and my family. My parents' house might lose a lot of its value, but so what? We have no intentions of moving, I want to get on the ladder so this is great for me!

Don't agree about your view on Labour, but I do agree house prices falling is a good thing for those wanting to get on the ladder, the prices had risen to stupid heights and I am a property owner also.

LesU

From the way this thread is flowing, it is almost like this has been reported as an internal Labour leak. It isn't. It is Anatole Kaletsky, writing in The Times and doing his usual thing of trying to be controversial.
His articles are full of this sort of contentious stuff. I think he does it just to wind people up. Of course it also means that people remember his articles. Don't worry, this isn't even remotely on the horizon. Of course you can never rule it out. You can prepare for any eventuality.
Me, I prefer to prepare for the £1,000 handout that every tax payer may get next year to kickstart the economy.

jzi19

Invest it in another country.. or in weapons,drugs,extortion. oh wait, we have fuel duty dont we.....

juicyjude

We have already paid tax on our deposits, world going mad, its just greed greed greed.

soulsaver

LesU wrote: »

His articles are full of this sort of contentious stuff. I think he does it just to wind people up. .

He succeeded then as far as I go.....:mad:

dave461_2

So how would first time buyers save a deposit?
Got to be the stupidest idea ive heard yet.

Degenerate

They've got the problem right, but the solution they propose is insane. A deposit tax would immediately create the "under the mattress" scenario, which is the last thing you want when banks are struggling.

The solution, which unofficially is already underway, is to "ramp up the printing presses". To start with, the Bank of England can monetise all the new government debt that is being created, and maybe even buy back some gilts to monetise even more. By increasing the money supply, they can beat deflation and create a positive inflation that in combination with near-zero base rates will create negative "real" interest rates.

This has the same effect - creating an incentive for people to spend money and keep the economy moving rather than hoard it and watch it lose value, but inflation taxes the cash under the mattress just the same as the cash in the bank.