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Osborne Lets Banks Off The Hook

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George Osborne's tax changes good for banks, say analysts

Cut in corporation tax to 24% from 28% expected to negate the impact of the levy on bank profitability

http://www.guardian.co.uk/politics/2010/jun/23/george-osborne-tax-changes-banks

i wouldnt worry about it none of them will be making any profit within 12-24 months... again and most of them will be bust within 36 months....again

Edited by Tamara De Lempicka

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but corporation tax aplies to all businesses so banks are still taxed relative to the business 'playing field', non-story AFAIK

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That's ok, we own most of them don't we?

err, no.

We don't own HSBC, santander, JP morgan, citi, barclays, goldman, BNP paribas, UBS, deutsche, this list goes on.

All are making money in the UK intermediating between UK borrowers/savers and between UK savers/borrowers and foreign savers and borrowers.

rationalise it all you like, but this amounts to more bank bailing IMO.

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but this amounts to more bank bailing IMO.

Don't see it as bailing the banks. The levy is on their balance sheet and not on their profit. I assume that that means they're going to be taxed on their assets. One of the accountants on here may like to elaborate on that.

Also cutting Corporation Tax. Well they like every other business will benefit. As will Britain, as it makes it a more attractive proposition to invest here.

As the economy is completely stuffed, I think the Chancellor has come out well with some positive ideas.

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Don't see it as bailing the banks. The levy is on their balance sheet and not on their profit. I assume that that means they're going to be taxed on their assets. One of the accountants on here may like to elaborate on that.

Also cutting Corporation Tax. Well they like every other business will benefit. As will Britain, as it makes it a more attractive proposition to invest here.

As the economy is completely stuffed, I think the Chancellor has come out well with some positive ideas.

Thank you for your Central Office opinion.

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but corporation tax aplies to all businesses so banks are still taxed relative to the business 'playing field', non-story AFAIK

yes, but workers pay a larger percentage of their income as tax than corps do, and it was taxpayers not corps that bailed out the banks. So how come taxpayers get stuffed again and big business walks away?

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yes, but workers pay a larger percentage of their income as tax than corps do, and it was taxpayers not corps that bailed out the banks. So how come taxpayers get stuffed again and big business walks away?

big business is owned by workers thru shares - what are you on about?

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big business is owned by workers thru shares - what are you on about?

absolute crap. big business is owned thru shares by almost exclusively by the top 5% of the population, sovereign wealth funds and banks.

The amount of dividend income to either montly income or pension savings of the average worker is tiny compared to the amount of tax they pay.

This is unfair. Simple as that. And worse than that, it is being painted as some kind of fair deal when it clearly isn't.

Workers are paying more to bail the banks than business, even though the latter rely on the banking system as much as we do individually.

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Thank you for your Central Office opinion.

Nothing personal, but can't you inject something more useful than just criticising anything and everything related to the Libcons?

If they were at least constructive comments it wouldn't be quite so boring..

:)

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Nothing personal, but can't you inject something more useful than just criticising anything and everything related to the Libcons?

If they were at least constructive comments it wouldn't be quite so boring..

don't be ridiculous - are you seriously suggesting that after years of unthinking ZANU PF and liebour type guff that the current bunch of robbers should not be subjected to exactly the same?

why?

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err, no.

We don't own HSBC, santander, JP morgan, citi, barclays, goldman, BNP paribas, UBS, deutsche, this list goes on.

All are making money in the UK intermediating between UK borrowers/savers and between UK savers/borrowers and foreign savers and borrowers.

rationalise it all you like, but this amounts to more bank bailing IMO.

..none of them received UK bail outs and all of these guys could move out over night ...HSBC used to be registered in Hong Kong....knee jerk reaction could cut our tax take within a glance.... :rolleyes:

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err, no.

We don't own HSBC, santander, JP morgan, citi, barclays, goldman, BNP paribas, UBS, deutsche, this list goes on.

All are making money in the UK intermediating between UK borrowers/savers and between UK savers/borrowers and foreign savers and borrowers.

rationalise it all you like, but this amounts to more bank bailing IMO.

Take for example HSBC, they never had a liquidity problem that I know of; half the banks did, some of them failed. Certainly, we should be raking in 100% of Northern Rock's profit (until 125% of the debt is repaid, say), many others too. However, a number of banks did actually have the deep pockets all along. And some semblance of risk management, despite Brown's deregulation experiment. To me, my trust of banks has simply polarised - I'll never consider using any of the banks who have shown to abandon the 3 cornerstones of banking (capital, liquidity and assets). I will trust those that (I think at least) retained their honour, and wouldn't want them to pay for the ones that cheated.

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i wouldnt worry about it none of them will be making any profit within 12-24 months... again and most of them will be bust within 36 months....again

Indeed, it will be amusing to see what contorted logic the politicians come up with to justify fuirther austerity cuts to pay for yet another round of bailouts.

Interestingly, the regular commentators on the FTAlphaville Markets Live today gave Osbornes budget a surprising thumbs down

http://ftalphaville.ft.com/blog/2010/06/23/269291/markets-live/

Mass unemployment and stagflation was their prediction

Edited by realcrookswearsuits

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don't be ridiculous - are you seriously suggesting that after years of unthinking ZANU PF and liebour type guff that the current bunch of robbers should not be subjected to exactly the same?

I'm sure in time they will be as hated as any government forced to make cuts to people's standard of living. If that makes you feel better?

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I thought that several of the banks were unlikely to be paying Corporation tax for a while anyway, since they can carry their recent losses foward to set off against current and future profits, thus reducing their tax bill on the large profits that they have recently been making due to bailouts, QE and a lack of competition in the market! :angry: :angry: :angry:

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Take for example HSBC, they never had a liquidity problem that I know of;

oh FFS thats because the central banks flooded the system with liquidity, EUR/USD swaps etc.

the banking system is not a set of disjoint corps with firewalls between.

despite the fact that some banks failed despite the bailout does not mean that the remainder were A OK.

http://www.google.co.uk/finance?client=ob&q=LON:BARC

Note how barclays share price descended from 800 to sub 100 before the bailout. Without the liquidity injection, what then for barclays, and for us all, and your savings?

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I'm sure in time they will be as hated as any government forced to make cuts to people's standard of living. If that makes you feel better?

not the point. Why should partisan anti-government commentary cease now the government has changed?

What possible justification can there be for this request?

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but corporation tax aplies to all businesses so banks are still taxed relative to the business 'playing field', non-story AFAIK

it's not a non story the banks have come off better off despite the mess they created.

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not the point. Why should partisan anti-government commentary cease now the government has changed?

What possible justification can there be for this request?

Any constant anti **insert party** views repeated verbatim are frankly boring. With a few exceptions most of the ones that used to be levelled at Labour were specific grievances.

Once we have had a few years of the current government people will have every right to complain about their stewardship.

Edited by libspero

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Any constant anti **insert party** views repeated verbatim are frankly boring. With a few exceptions most of the ones that used to be levelled at Labour were specific grievances.

Once we have had a few years of the current government people will have every right to complain about their stewardship.

time to change your filter.

I recall a huge volume of reactions to my posts (which were talking about economics, not politics), that were exactly along the lines of hilltop's post earlier. You know, ZANUlab, liebour, ZANU central office , etc etc etc etc etc.

I don't recall anyone rushing to my defence then so I see absolutely no justification for your rather supercillious intervention now the boot is on the other foot.

If you feel this way about content-less partisan points why were you not making this point back when I was being accused of being a ZANU PF central office hack?

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yes, but workers pay a larger percentage of their income as tax than corps do, and it was taxpayers not corps that bailed out the banks. So how come taxpayers get stuffed again and big business walks away?

Since corps ARE taxpayers this comment is automatically ******.

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it's not a non story the banks have come off better off despite the mess they created.

no - you are describing a completely different story instead. I agree the banks were a disgrace. Water under the bridge now tho.

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Since corps ARE taxpayers this comment is automatically ******.

corps pay less tax than workers. that is the point.

this is an unsustainable situation since workers are coprs customers. the imbalance in purchasing power of consumers versus the amount being invested to produce stuff for them can only end one way.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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