How to protect your assets under a Corbyn government

le_loup

zagfles wrote: »

Introduce the "Tobin tax", which would hit London's financial services industry which has already been damaged by Brexit

What, do you mean like stamp duty on share purchases? That certainly has stopped London becoming a financial centre. Not.

Glen_Clark

A_T wrote: »

ISA owners would riot on the streets if the tax free status was removed!

In which case their savings would be seized to pay legal costs and compensation.
The only people who can afford to riot are those with nothing to lose - the have-nots. And they are hardly likely to riot on behalf of the haves.

Glen_Clark

zagfles wrote: »

(Corbyn would)Reduce confidence in the UK economy, resulting in the pound and the UK's credit rating plummeting, meaning imports are more expensive and inflation rising (as it already has with Brexit), and the interest the govt has to pay on borrowing increasing. Meaning more tax rises are needed.

Sounds like no change there then.

zagfles

grey_gym_sock wrote: »

labour would run the economy more competently than the tories.

Why did the IFS say their manifesto "wouldn't work" then?

They proposed big increases in spending but only raising tax rates on those on over £80k and corporations. Both are likely to result in less tax revenues, not more. The Tories have reduced corporation tax rates, but the amount receievd in corp tax has increased!

Similar with taxes on high earners, when the Tories chopped the higher rates of tax in the late 80's the tax revenues from high earners actually increased.

Multinationals and high earners have more choices than ordinary people. They can go abroad (or not come here). They can afford to work less, or retire early. Raising taxes on them can and does reduce revenue, not increase it. We see it now with the pension LTA which hits high earners like doctors, who are retiring early.

we need more public investment. they'll do that.

we need more money in the hands of people on low and middle incomes (who'll spend most of it), instead of in the hands of people on high incomes (who put most of it in BTLs or the stock market, which pushes up asset prices). labour will end the 7 years we've had of falling public sector pay (in real terms). and help push up private-sector pay, by introducing a real living wage, and banning zero-hours contracts. and will tax wealthier people a little more.

Point out a successful "big state" economy that has low taxes on ordinary people then.

The likes of the Scandivanian countries are big state economies. Excellent public services, excellent welfare provision etc. But taxes are high on ordinary people. Not just the wealthy and corporations. Sweden for instance has over 30% basic rate tax (with a tiny allowance, about £2k), over 30% NI, 25% VAT on almost everything, very high alcohol taxes etc.

That works. Raising taxes on just the rich and corpoartions doesn't.

all that will make the country as a whole better off. if you're wealthy, it is a bit swings-and-roundabouts, because the businesses you own shares in will be making more money (because most people have more money to spend), but on the other hand will be paying a bit more tax on those higher profits. for most people, it's a clear win.

austerity has done huge damage to the economy. it makes no sense. it needs to be ended.

Do you remember being constantly told by Labour that "austerity will cause a recession"? They were wrong. It didn't. Do you remember them then switching tack to claiming it's a "jobless recovery"? They were wrong there too. Unemployment is now the lowest in 40 years.

The Greeks didn't like austerity, so they elected a far left govt. But it didn't change anything. They are implementing the worst austerity in Europe. Because it's an economic necessity.

markets will recognize that, so actually the pound is likely to rise if labour get in. (despite most people who work in finance probably voting tory.)

Oh really? Try telling John McDonnell that then. He's preparing for a "run on the pound" http://www.independent.co.uk/news/uk/politics/labour-pound-sterling-run-john-mcdonnell-economy-government-jeremy-corbyn-party-conference-a7968156.html

also, labour would not be heading us for a chaotic, no-deal kind of brexit. (it's not clear exactly what kind of brexit they would be heading us for, i have to say, but at least not for that kind.) the tories may well be heading us for that. or maybe not. but they haven't ruled it out. and that would be real economic incompetence.

BTW, a "tobin tax" is an obviously sensible idea. a very broad range of economists who've looked at the idea agree - not just the more left-wing ones. the point is more to dampen down speculation, which can be (and has been) very dangerous. but it would also raise a significant amount of tax. though it's unclear precisely how much, since transaction levels would reduce when it's introduced.

Tobin never intended it to be used to raise revenue. That wasn't its purpose, but of course, like higher taxes on the rich and corporations, Labour and others look on it as a way to raise revenue without taking account of change in behaviour/location which would likely result in loss of overall tax revenue.

Glen_Clark

longleggedhair wrote: »

The best way to protect yourself is to make sure it doesn't happen. Make sure you use your vote against the Labour Party, (in most constituencies the only vote that will count against Labour is a vote for the Conservatives) and make sure family and friends do the same.

Personally I don't think it will happen. Yes there are the unemployed and naive who will vote Labour, and now Mr Corbyn has the backing of the vast majority of the growing Muslim vote, however most ordinary sensible people would never back him so I think we should be ok.

He started as a 200-1 outsider to lead the Labour Party.
His growing support base seems to be youngsters - 'generation rent' who feel conned and let down by the landlord dominated Tory Party.
Traditionally the young say they will vote but don't. But at the last election some actually did vote - hence the surprise result.
If Corbyn did get in I think heavily leveraged BTL investors would have the most to worry about. A relaxation in panning restrictions would be a double whammy for house prices - land bankers etc would start releasing their stock on to the market as they would no longer expect its price to keep increasing.
Wheras he can't make much difference to world tracker funds.

zagfles

Glen_Clark wrote: »

Sounds like no change there then.

Indeed. The electorate has gone mad, I blame social media. Brexit, Trump and Corbyn. A narrow escape with the latter, for now...

zagfles

Glen_Clark wrote: »

He started as a 200-1 outsider to lead the Labour Party.
His growing support base seems to be youngsters - 'generation rent' who feel conned and let down by the landlord dominated Tory Party.
Traditionally the young say they will vote but don't. But at the last election some actually did vote - hence the surprise result.

It wasn't just them voting, it was mainly that there was a big swing among those who did vote. In the 2015 election there wasn't a big gap in voting intention among the young, it was something like 36/32 Lab/Con IIRC. But at the last election it was something like over 60% Lab.

From talking to my kids and others, there does seem to have been a massive social media campaign to villify the Tories, a lot of it totally fake news like you'll have to pay for doctors/hospitals from next year (there was a fake advert "reminding" people to get their "NHS insurance", I even got it on my Faceache feed). A lot of young people seem to have bought into this type of "Tories eat babies" propaganda.

If Corbyn did get in I think heavily leveraged BTL investors would have the most to worry about. A relaxation in panning restrictions would be a double whammy for house prices - land bankers etc would start releasing their stock on to the market as they would no longer expect its price to keep increasing.
Wheras he can't make much difference to world tracker funds.

Policies to stop house prices rising would be very sensible, but policies which cause them to plummet wouldn't be. That's what caused the last financial crisis in the US. Banks with large mortgage books would become insolvent, and would need bailing out again.

So it's sensible to tackle stupidly high house prices as they're the biggest financial issue facing the young (NOT student loans), but it need sto be done carefully.

Personally I'd put high CGT on all housing even owner occupied but with the ability to carry foward gains to a new house, and as transition only apply it to the increase from the point it's implemented.

msallen

Glen_Clark wrote: »

It doesn't really concern me because I suspect its just the Tory dominated press scaremongering about what would happen under a Corbyn Government.

I go nowhere near the Tory press (except for a laugh sometimes) and have no ideological ties to any political party, but I would view a Corbyn/McDonnell led government to be many many times worse for this country than Brexit.

BananaRepublic

If Corbyn gets in the options are to emigrate, or stay and watch the country fall apart.

They might make BTL much less lucrative by removing all tax breaks, which is one of the few things I'd agree with. I believe that their good intentions would be proven to be no more than empty rhetoric, and the actual outcome of their policies would be a shed load of unintended consequences, such as wealthy people moving money overseas.

Puddylove

I wish there would be a government that would tax us all more, and fund education and the NHS more. I'm not sure any of the current parties would align to my ideal though.
I don't think life is all about protecting your assets; there's a moral obligation to help others less fortunate than yourself.
MSE is great but talking about money can bring out the worst side in some people.