Labour propose confiscating 10% uk equities - pension planning response?

Ganga

Of course this will/might only happen if Labour were voted in,cannot see it myself.

k6chris

Ganga wrote: »

Of course this will/might only happen if Labour were voted in,cannot see it myself.

The power of populist policies - see Italy.....


https://www.bbc.co.uk/news/world-europe-45666160



What have the populists promised?

Italy's populist government needs to fulfil campaign promises and appease its voters while balancing its books.
Five Star and the League swept to power promising a series of tax cuts, new social welfare policies and better pensions - all expensive programmes.
Among the ambitious plans at election time were:

• A guaranteed basic income for poor families of about €780 (£695) a month - at a projected cost of €17bn (£15bn)
• Tax reform for rates of just 15% and 20%, down from 23%-43%, which could cost up to €50bn (£45bn)
• Abolishing plans to raise retirement age over several years, and setting minimum pensions

I can quite easily see Labour being elected give the Lib Dems have gone AWOL and the Tories are trying their best to destroy their re-election credibility via the you-know-what negotiations.

marlot

Ganga wrote: »

Of course this will/might only happen if Labour were voted in,cannot see it myself.

Don't forget that around 50% of the population pay no income tax. Policies which 'bash the rich' could become very popular.


And given the greed at the heart of many big company boardrooms, they're an easy target.


Of course, the rich will avoid the new taxes. The poor don't pay, and it'll be the people in the middle who have to pay.

ayshfm1

It's not just that the proposals are alarming. It's also the way the Labour party has and is being purged. The momentum movement inside Labour is effectively removing all oppostion to Corbyn and ensuring there will be no challenge to him. If they get into power you can imagine this playbook being played out again, ie they will change the rules so we can't vote them out when the penny drops.


You only have to listen to them for a bit to realise they truly believe they have a monopoly on what is right and anyone who disagree's needs to be marginalised. I can't see them thinking that simply losing a vote would be grounds for going back into opposition.


Scary!

Thrugelmir

k6chris wrote: »

The power of populist policies - see Italy.....

Not comparable situations. Like criticising Trump. One needs to understand the why's and wherefore's first. Rather than comment looking outside in.

Malthusian

LHW99 wrote: »

I tend to agree, having lived through the times when basic rate income tax was 33%.

You are still living through them. National Insurance rates were much lower when "income tax" rates were 30%+. Income tax is very close to what it was back then, once you take the time to add it up.

(Yes, I know NI isn't payable on pension and savings income.)

redux

Hearing about this a bit more, the dividend each worker can receive would be capped at £500, and the surplus, probably a larger share, goes to the government.

So although dressed up as a populist measure it's more like an extra form of tax. Where would the money come from within company funds to pay this extra burden? Possibly by holding down salaries. How about keeping back £2000 of increased salary in order to give the employee £500 and the government £1500? Great idea, more impact on worker than company, almost the opposite effect of the stated aims. Presumably Labour hopes that companies will ensure the highest paid take most of the impact, but would that actually happen, could the numbers add up?

Spreadsheetman

redux wrote: »

Hearing about this a bit more, the dividend each worker can receive would be capped at £500, and the surplus, probably a larger share, goes to the government.

...

Much larger share - there are examples e.g. Royal Dutch Shell where it is £500ea to staff and billions to the government.

As I have seen it discussed, Shell is a good example of what would likely happen - move the currently split UK-Netherlands headquarters to the Netherlands, de-list from the FTSE and avoid the confiscation completely by becoming a foreign corporation. Also gets rid of a load of UK jobs and UK corporation tax at a stroke.

Suddenly the magical money tree has lost a branch...

Malthusian

Spreadsheetman wrote: »

Also gets rid of a load of UK jobs and UK corporation tax at a stroke.

A load of highly paid skilled engineering jobs and executive jobs. Fat cats eliminated, equality increased, relative poverty reduced, overwhelming success for Labour.

Paul_Herring

Malthusian wrote: »

A load of highly paid skilled engineering jobs and executive jobs. Fat cats eliminated, equality increased, relative poverty reduced, overwhelming success for Labour.

The only phrases missing there are "lowest common denominator," and "race to the bottom"...