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OnlyMe

Brown Economics Falling Aoart

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Ill-conceived and riddled with fraud Brown's policies are falling apart one by one.

http://www.telegraph.co.uk/money/main.jhtm.../ixcitytop.html

Revenue launches probe into soaring tax credit fraud

By Robert Watts (Filed: 01/01/2006)

Fears are mounting that the tax credit system is being overwhelmed by fraud from tens of thousands of people falsely claiming to be sick or disabled.

Documents published by HM Revenue & Customs show that the number of people claiming Disabled Worker Premium has rocketed. Among single people without children, claims have nearly doubled from 36,800 to 67,400 in the past six months.

In its latest statistical review of the tax credit system, HMRC says it believes that the rise is linked to a multi-million pound fraud and has launched an investigation.

.......

Last month the department was forced to close the tax credits e-portal, which allowed people to apply for the benefits online, because the system had become inundated by fraudsters.

Fraudsters began making multiple applications, using false or stolen identities or claiming for non-existent children, as soon as the tax credit system was launched in April 2003. Critics of the benefits system say that scrutiny of applications has been notoriously lax.

PATHETIC! angry:

Whitehall job cuts body needs more staff to cut jobs

By Jill Sherman, Whitehall Editor

http://www.timesonline.co.uk/article/0,,17...1966706,00.html

THE government department that is meant to slim down the Civil Service has ballooned in size because of its dependence on external consultants, The Times has learnt.

Edited by OnlyMe

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Is this because the tax credit system is so complex it has to give people the money upfront and then claw it back when they work out the entitlement?

Pathetic.

Saw a program where of our brightest undergrads AND winners of University Challenge were challeged by the BBC to work out the amounts due under the tax credit rules given.

"In the Real Story programme, a team of students from Oxford University's Corpus Christi College failed to decipher a tax credit statement using the same guidance notes given to the public. One was working towards a doctorate in applied mathematics. "

http://news.bbc.co.uk/1/hi/programmes/real_story/4436110.stm

Edited by brainclamp

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Lex: UK economy

Published: December 30 2005 12:58 | Last updated: December 30 2005 12:58

In one respect Gordon Brown is already prime minister. Increasingly criticised at home, he gathers effusive praise abroad. “Remarkable,” concluded the International Monetary Fund’s December review of the UK economy. “Impressive,” thinks the Organisation for Economic Co-operation and Development. Growth for 53 consecutive quarters is no mean feat.

http://news.ft.com/cms/s/1bdda234-791c-11d...00779e2340.html

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The biggest tax credit fraud of all is the absence of any tax on 1st home property inflation.

Example 1: If you bought a house in 1997/8 with 100% mortgage for 120k, it is likely you could have sold it in 2004 for a massive profit, at a price anywhere between 190k and 240k. This is a CASHABLE profit with absolutely NO tax applied.

Example 2: You work your guts out building a small business from 1998 onwards, provide employment, create products, and pay on your income a total of nearly 50% in tax (including hidden taxes, VAT and other stealth taxes). To get to the same place as having the UN-EARNED and UN-TAXED property profit you will have paid some £50,000 in tax.

This is the fundamental reason why the UK economy is based on a wing and a prayer, on fluff, unreal money, notional value and the complete gullibility of first time buyers who stupidly are now still willing to pay directly for the profit of others who have done no work whatsoever and have just created an ever increasing national debt.

VP

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Once upon a time I was buying a house

But now I'm only owning a part

There's nothing I can do

A total eclipse of the hart

Once upon a time there was light in my house

But now there's only gas in the dark

Nothing I can say

A total eclipse of the hart

INSTRUMENTAL

ok. quizmanias going live. ive got to go....

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The biggest tax credit fraud of all is the absence of any tax on 1st home property inflation.

Example 1: If you bought a house in 1997/8 with 100% mortgage for 120k, it is likely you could have sold it in 2004 for a massive profit, at a price anywhere between 190k and 240k. This is a CASHABLE profit with absolutely NO tax applied.

Example 2: You work your guts out building a small business from 1998 onwards, provide employment, create products, and pay on your income a total of nearly 50% in tax (including hidden taxes, VAT and other stealth taxes). To get to the same place as having the UN-EARNED and UN-TAXED property profit you will have paid some £50,000 in tax.

This is the fundamental reason why the UK economy is based on a wing and a prayer, on fluff, unreal money, notional value and the complete gullibility of first time buyers who stupidly are now still willing to pay directly for the profit of others who have done no work whatsoever and have just created an ever increasing national debt.

VP

I agree with your angry sentiment. So, I say:

TAX CAPITAL GAIN ON PRIMARY RESIDENCE!

They never will though.

frugalista

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I agree with your angry sentiment. So, I say:

TAX CAPITAL GAIN ON PRIMARY RESIDENCE!

They never will though.

frugalista

How can you tax the paper gain in someones main residence? How are they meant to move to the next one? Its appalling that you believe this mumbo jumo nonsense in your confused state over whats occuring.

The bank has been printing money like jolly-o, and drive up houseprices. The large volumes of cash hitting the economy funnly enough don't seem to be raising wages like they did in the lawson boom and eventual bust. Thats because the labour pool has been aggressivly expanded.

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How can you tax the paper gain in someones main residence? How are they meant to move to the next one? Its appalling that you believe this mumbo jumo nonsense in your confused state over whats occuring.

Spend some more time thinking about this one, brainclamp. The difficult part would the transistion period, in fact it would be virtually impossible to change our tax regime in this way. Nevertheless, its interesting to muse on a parallel universe where the UK has always had CGT on main residences. There would be no IHT in this parallel world and other taxes would likely also be lower. CGT on PPRs would have a stabilising effect on houseprices.

You ask how someone could afford to move "up the ladder": well, everyone is in the same situation so the market in our parallel universe would be different. Many people would likely roll up their CGT liability into their next mortgage.

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Spend some more time thinking about this one, brainclamp. The difficult part would the transistion period, in fact it would be virtually impossible to change our tax regime in this way. Nevertheless, its interesting to muse on a parallel universe where the UK has always had CGT on main residences. There would be no IHT in this parallel world and other taxes would likely also be lower. CGT on PPRs would have a stabilising effect on houseprices.

You ask how someone could afford to move "up the ladder": well, everyone is in the same situation so the market in our parallel universe would be different. Many people would likely roll up their CGT liability into their next mortgage.

Such a tax is eminently possible, but as you hint, it would have to be applied in stages from its inception. It is perfectly possible to apply a tax regime where profit has been cashed rather than applied to the "next" move in the cycle, although I actually think a blanket tax whatever your transactions would very quickly nip any more insane HPI in the bud. Like all radical policies, (like stopping children working in mines) the conventional and unimaginitive wisdom is that this is "impossible". Anything that is just IS possible, though I agree the average man and woman are far too self-interested to vote for such a thing.

VP

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  • 301 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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