Shares in bailed-out banks

marvin

Sceptic001 wrote: »

The full paper is here: http://www.cps.org.uk/cps_catalog2/give%20us%20our%20fair%20shares2.pdf
Worth a read.
(PS. I have no connection with CPS!)

It is too complicated the great unwashed will never understand it thus it is destined to fail.

ed123_2

....perhaps pensioners might pay vat, fuel duty, air travel tax, stamp duty, alcohol/tobacco duty, council tax, tv licence, road tax, inheritance tax etc etc........but then again some might think pensioners are non tax payers....

Sceptic001

I'm bumping this thread as it is on the front pages of several of today's papers. Unfortunately for those who think it is a good idea, it is being attributed to Nick Clegg , but the actual original research done by the Centre for Policy Studies is here.

wriggly

It's a nice idea in principle, but a stupid idea in practice.

The banks get huge costs in dealing with milltions of shareholders, and the shareholders get a relatively small but risky and highly-concentrated asset, which is expensive to cash in.

jamesd

"You are giving the Treasury an assurance that they will break even but you are not giving the Treasury the freedom to grab the windfall if there is one."

I'd rather have that back in tax reductions or reduced deficit when they are sold at a profit by the Treasury.

The reason the plan may look attractive to some in politics is that it means they can sucker the voters into having the shares, then act more freely on plans to tax or split banks, without risking a loss to the Treasury or a longer delay.

If they did want to do it then adding the value to the stocks and shares ISA allowance and opening an S&S ISA account for every adult would be one of the most interesting ways. And if done a suggested by CPS, at least use proper terminology, call them share options with a normal exercise price and let those options be traded on the free market from the time of issuance. That way those who don't want them can sell immediately to make some money.

I'm unsurprised that a Liberal Democrat politician would want to try throwing borrowed money at the electorate before the next election, though.

oldagetraveller

[quote=[Deleted User];43729560]This is where I would like clarification on what is meant by taxpayer. If a pensioner's income is below the personal threshold (many are), do they qualify as a taxpayer.[/QUOTE]

Why are you obsessed by "pensioners"? The same applies to anyone else with regards their income and personal allowance.