Tax Changes Causing Unease In Tory Heartlands

[bogbrush]

The "left" abandoned Labour during John Smith's period of leadership. I hate this Americanisation of our politics where its possible to pretend that New Labour, much like US Democrats, are somehow unreconstructed Marxist-Leninists. The left certainly didn't vote for them in 1997, I think you'll find that was the same "aspirational" idiots who are now denying all involvement. In Civilization & Its Discontents, Freud called what you are exhibiting "the narcissism of small differences". You're right though, it is all Dave's work. That being the problem for many. You seem to have contradicted yourself a tad.  

A nice piece from Andrew Rawnsely on the subject of Dave's relationship with his party: http://www.guardian....meron-coalition

So Camerons not a Tory now? If it allows you to accept he's doing stuff you'd given up getting from Labour and still hate Tories then who am I to spoil it?

And for you to get insulting to someone on the basis of finding differences and making preference is, well, hypocritical.

[righttoleech]

When Labour lowered CGT to 18% I was incredulous. Labour's 13 years coincided with the largest unsustainable prorperty boom in history during which MP's collected property on their constituent's backs. What a shame that this theiving has been outlawed when the outlook for future capital gains on property is so bleak.

How bizzare that LABOUR.......yes LABOUR, lowered CGT to 18%, ABOLISHED the 10% income tax rate, penalizing anyone earning less than £18,000 p.a......and changed the tax treatment of stocks and shares ISAs such that only higher rate tax payers benefited from the treatment of dividends. These policies were designed to hit the despised 'mug rump' of society. Why do labour so hate the people who fund their schemes to reward the feckless.

The coalition has reversed the CGT fiasco within days of power. CONGRATULATIONS. This is a major achievement

[Guest sillybear2]

David Cameron said last week that a second home was "not necessarily a splendid investment for the whole economy"

It's a valid statement of fact regardless of who makes it, inflating bubbles around assets that basically consist of a pile of bricks stacked on a piece of land doesn't add value to the wider economy, only business investment does that. If a house doubles in value it hasn't doubled in size or utility to society, it simply reflects unearned income stolen from the future, contrast that to places like Germany where capital expenditure goes into real productive infrastructure that provides employment, expands the tax base, adds to the trade surplus and generates real wealth that can be reinvested into other fruitful enterprises (err... or stolen by Greece).

We need to get real in this country, enough of the Fantasy Island stuff, we cannot base our economy on a lightly taxed ponzi scheme.

If I have an aspiration to own a Rolls Royce should the government concoct a set of rules that effectively subsidizes my desires? The truth is a £950 tax disc only adds to the Veblen effect. If aspiration is a thing in itself, part of commodity fetishism, why should anyone care about capital gains on any unearned income if they never plan to sell the trophy asset? Unless 'aspiration' now includes becoming a BTL slumlord.

Edited May 24, 2010 by sillybear2

[Snugglybear]

I don't remember the Libs having a policy to sort out CGT like that, not do I recall Nick Clegg telling people that 2nd home BTLs weren't good for the economy. Seems that was all Dave's own work.

Liberal Democrat Policies for Rural Communities, published 20th April 2010

"We will also reform Capital Gains Tax to ensure that those who use second homes as speculative investments will pay tax on enhanced capital value at the same rate as on earned income, not 18% as at present."

[IBlewItLastTime]

When Labour lowered CGT to 18% I was incredulous. Labour's 13 years coincided with the largest unsustainable prorperty boom in history during which MP's collected property on their constituent's backs. What a shame that this theiving has been outlawed when the outlook for future capital gains on property is so bleak.

How bizzare that LABOUR.......yes LABOUR, lowered CGT to 18%, ABOLISHED the 10% income tax rate, penalizing anyone earning less than £18,000 p.a......and changed the tax treatment of stocks and shares ISAs such that only higher rate tax payers benefited from the treatment of dividends. These policies were designed to hit the despised 'mug rump' of society. Why do labour so hate the people who fund their schemes to reward the feckless.

The coalition has reversed the CGT fiasco within days of power. CONGRATULATIONS. This is a major achievement

Strongly put but basically correct.

Gordon Brown's panicky CGT cut gave a golden window for those who had capital gains to crystallise them and get out any gains made over the last 3-5 years at a low rate. The smart money will have done this and the not-so-smart will try to do it asap and I do wonder about the short-term consequences for BTL property.

In general, the tax on gains and income should be equal so there is not incentive to tax dodge. Its important not to tax inflationary gains though, which is why indexation allowance was completely fair.

My only beef is that all taxes are way too high, but on the parity of capital and income tax, few can argue.