Tax wealth not income

Nanpy

http://www.bbc.co.uk/news/uk-politics-17292918

Vince Cable is "confident" there will be a move away from taxing income to taxing wealth. Savers getting the boot stuck in yet again.

opinions4u

Focus should be on doing things more efficiently and reducing the taxation burden.

Not taxing more or taxing differently.

Liberal Democrats have warned against axeing the 50p tax rate too soon but Mr Cable said this week there was a "broad understanding" that, if it is dropped, it should be replaced by some form of wealth tax.

Ah, so taxing little old ladies who've lived in the same house for 50 years simply because it's worth £500k then.

le_loup

I think you will find the starting level is £2 million. But, even so, the "little old lady" argument is a little trite when the same "little old lady" has currently to pay tax on the meagre pension which her dear husband went without to fund out of his "hard earned income" ... or even a different "little old lady" who owns an ex council flat worth £80,000.
I am of course being flippant, but wealth taxes work in other countries, should they not be considered here?

Lokolo

What would happen to consumer spending levels if the wealthy moved their wealth out of the country? Would this not be effected?

opinions4u

le_loup wrote: »

I think you will find the starting level is £2 million. But, even so, the "little old lady" argument is a little trite when the same "little old lady" has currently to pay tax on the meagre pension which her dear husband went without to fund out of his "hard earned income" ... or even a different "little old lady" who owns an ex council flat worth £80,000.
I am of course being flippant, but wealth taxes work in other countries, should they not be considered here?

I'd consider anything and everything.

As part of a package that's designed to get value for money and fairness out of the tax system.

Tax based on jealousy to subsidise non-contrbutors to society ... not so sure.

oldvicar

Saint Vince is in danger of losing the Lib Dems my vote at the next election.

When I am a "little old lady" I will underatand that if I go in to a Care Home I will have to pay my own way, and if there's any money left when I die then it will be taxed to help pay the fees for the "little old ladies" who didn't scrimp and save from their "hard earned income" like I did.

But I'll be gubbered if I will vote for someone who wants to turf me out of my lovely home which I worked a lifetime for, and can now barely afford to heat on my "meagre pension". The state can have it when I'm finished with it, not before.

le_loup

Ah, so the "little old lady" "scrimped and saved" as well as had a "hard earned income"?

Well we could go on like this - using Daily Mail speak - for weeks but it's a bit boring.
Let's just agree that it is an idea that works elsewhere and is worthy of consideration and is really aimed, not at old vicars but, at getting the super rich who have means of avoiding the taxes the rest of us pay, to give up a little more of their "maybe not so hard earned" dosh to help the real little old ladies.

oldvicar

Le Loup: Agreed.

But I'm still not voting for it. And St Vince and chums need to remember that little old ladies in big houses are the demographic most likely to use their vote.

Goldenyears

I have yet to see it defined what this "wealth" is supposed to be. Every news report seems to think it's gross assets ignoring any debts such as a mortgage. How do other countries with a wealth tax do it ? Didn't Denmark have one ?

funguy

There should just be a flat rate tax of 20% on all earnings above £12K to £100K and then say 25% up to another level. Need to encourage people to work and earn money rather than work harder, earn more and pay more tax!

Mandelbrot

So if I rent my £10M mansion from my company, and spend my wealth on adorning the walls with works of art, and the McLaren F1 LM in the garage, what tax would I pay?