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'world's Rich Are Turning London Into Capital Of Inequality And Tax Evasion'

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London is being "skewed in dangerous ways" by the world’s rich using its property market to dodge tax and make money, an award-winning New York Times columnist has claimed.

Roger Cohen, who recently left London after living here for five years, warns that the use of “real estate as investment and tax dodge” instead of homes is a “life-sucking force” that is blighting the capital.

He claims that the trend has already turned Belgravia into a “mausoleum” reserved “for the occasional use of the globe’s peripatetic rich” and that there is a “reek of something amiss … and wrong” on London’s streets.

In an article for his paper, Mr Cohen also claims that London is a capital “of inequality and tax evasion” in a wide-ranging critique that will reinforce concerns highlighted by David Cameron’s warning about the use of London property by money laundering criminals. [more at link]


http://www.standard.co.uk/news/london/worlds-rich-are-turning-london-into-capital-of-inequality-and-tax-evasion-10423185.html

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So, he's repeating what Cameron said just a couple of days ago.

Nothing new in it. It was true back in the days when the whole of our press campaigned for the "Natwest Three" not to be extradited to be put on trial. Or when I got a perspective on it in the early 1990s as a contrast to what was happening in Italy at the time. Or, no doubt, a generation earlier.

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Let's face it.

Any government could have put a stop to this any time.

The question the politicians have to answer is ' Why didn't you?

The electorate, having witnessed the financial shenanigans in parliament will have suspicions, strong suspicions. VERY strong suspicions.

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When around a third of Mps have BTLs, and no doubt many others have second homes in London itself - there is zero incentive to fix this.

http://www.theguardian.com/commentisfree/2013/jul/17/when-we-pay-rent-to-our-mps

The Government is part of the problem.

No, Buy-to-Let is the problem, turning a basic human need into a leveraged, speculative, investment vehicle, around which a whole, self supporting, industry has grown. It has sucked in people from all walks of life, just like the South Sea Bubble before it.

At what stage of the South Sea Bubble did Sir Isaac Newton lose his shirt?. I think it was about this stage and In many ways Sir Isaac Newton was a clever guy.

Edited by Bruce Banner

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When around a third of Mps have BTLs, and no doubt many others have second homes in London itself - there is zero incentive to fix this.

http://www.theguardian.com/commentisfree/2013/jul/17/when-we-pay-rent-to-our-mps

The Government is part of the problem.

That's a great article.

Easy to forget that this is a moral issue. People have their breaking points.

I wonder if an unexpected side effect of the budget changes was the realisation of how bad the tax breaks were by many people.

The hatred of landlords is so strong now we won't settle for less than mass bankruptcies.

The LL class should have welcomed regulation over the years to deflect critism. Their whole business model operate on presumed popular content.

What happens when the dam breaks and people realise the LL class are not invincible?

Edited by growlers

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....best then not to live around them, else they make you feel inferior..... Unless of course they are prepared to give you a well paid job.

...anyone can become rich if they live tax free.

Edited by winkie

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No, Buy-to-Let is the problem, turning a basic human need into a leveraged, speculative, investment vehicle, around which a whole, self supporting, industry has grown. It has sucked in people from all walks of life, just like the South Sea Bubble before it.

At what stage of the South Sea Bubble did Sir Isaac Newton lose his shirt?. I think it was about this stage and In many ways Sir Isaac Newton was a clever guy.

He lost it buying back into it because the values had increased further after his initial exit. He made the money and then lost it because he wanted more.

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...anyone can become rich if they live tax free.

That's more true than you'd think ...

I started my journey from poor towards rich in 2008, when I started avoiding tax. Since then my net worth is up by well over half a million, which is also more than my total income over those years. Something about, if you think like a rich person ...

Damn. Why didn't I have this insight 25 years earlier?

Hmmm. Nope, wouldn't have worked. The scope to think like a rich person is a bit limited when your disposable income[1] is less than the dole.

[1] Gross income - PAYE tax - Rent - cost of working.

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