Jump to content
House Price Crash Forum

Is a Wealth Tax the Answer to UK coronavirus Spending Splurge ?


Recommended Posts

No. More taxes NEVER help.

Less (much less) spending is the solution. Of course, will never happen with socialists in charge.

Edited by Killer Bunny
Link to post
Share on other sites
10 hours ago, Killer Bunny said:

No. More taxes NEVER help.

Less (much less) spending is the split. Of course, will never happen with socialists in charge.

I don't think this is true. I think the way the financial system is set up, government spending is what puts money into the economy. Cut spending and you get a recession.

You'd need to totally reinvent the financial system first before you could get anywhere with less tax and less spend. (unless you are in politician speak world where "massive tax cuts" mean about 0.5% overall reduction of govt revenue)

Genuine Question: What is a "wealth tax", who does it target, what is the overall effect of this transfer of wealth, who gets wealth taken off them and who is the beneficiary?

Link to post
Share on other sites

Surely a wealth tax is deflationary, and it would seem mad for the government to confiscate capital from the public while at the same time directly pumping 'free money' into corporates via QE.  

Plus we all know they'll exclude people's primary homes from the calculation, screwing anyone prudent enough not to enter debt servitude to buy a house at overinflsted prices. 

Link to post
Share on other sites
50 minutes ago, Locke said:

OK two different things - I wasn't talking about money creation but I meant putting money into the economy i.e. spending money to get people to do things, in that if you cut tax to zero and cut govt spending to zero there would be the mother of all recessions.

Link to post
Share on other sites
51 minutes ago, Upabove said:

Surely a wealth tax is deflationary, and it would seem mad for the government to confiscate capital from the public while at the same time directly pumping 'free money' into corporates via QE.  

Plus we all know they'll exclude people's primary homes from the calculation, screwing anyone prudent enough not to enter debt servitude to buy a house at overinflsted prices. 

I asked this above - if there were a "wealth tax" who would lose and who would gain? Genuine question.

Link to post
Share on other sites

Wealth tax is a great idea - so long as it's other peoples wealth and the elites off shore haven, trust, tax residency status, shell company, pension pot, and one man 'charity' funds are all ignored.

So it's another tax on the stored income of people then.  Probably warming the masses up for the rumored Emergency Budget.

 

Link to post
Share on other sites
56 minutes ago, erat_forte said:

I asked this above - if there were a "wealth tax" who would lose and who would gain? Genuine question.

Pretty much every news article I’ve read on it in the last few days has said the exact same thing, they’d come at it via changes to capital gains and inheritance tax rather than a direct asset tax.

No idea how accurate that is but definitely the line that’s being banded around at the moment.

 

Link to post
Share on other sites
3 minutes ago, Jim Bexley said:

Pretty much every news article I’ve read on it in the last few days has said the exact same thing, they’d come at it via changes to capital gains and inheritance tax rather than a direct asset tax.

No idea how accurate that is but definitely the line that’s being banded around at the moment.

 

If it is CGT/IHT, then it will be useless unless it covers IHT on property and trusts, CGT on property sales and pension pot increases.

All of those are ideological red lines for the Tories

 

Link to post
Share on other sites
13 hours ago, Killer Bunny said:

No. More taxes NEVER help.

Less (much less) spending is the split. Of course, will never happen with socialists in charge.

+1

Socialism has been turned into communism in UK.

Should be less intervention from state and less taxes which increases revenue and balances budget expenditure properly.

Link to post
Share on other sites

Land Value Tax, that is the one wealth tax no one can escape and will help keep the value of properties in check. And scrap stamp duty at the same time along council tax. 

Small transaction tax on financial transactions? Make High Frequency Trading (HFT) unprofitable and kill the momentum trading algorithms that is creating those stupid stock market bubbles.

This is a start. There is definitely a lot to do around trusts and fake charities and all.

If we could do decrease income tax at the same time to encourage people to work and not being leeches on other people's work it would be great.

Link to post
Share on other sites
26 minutes ago, Simhadri said:

+1

Socialism has been turned into communism in UK.

Should be less intervention from state and less taxes which increases revenue and balances budget expenditure properly.

If budgets are balanced, there is no need to go to the market to borrow further money.  Without that risk, the UK can easy default and wipe out it's outstanding debt. The released interest payments can fund further public services and tax cuts.

Strange how advocates of low tax & balanced budgets overlook this and maintain that debt interest must be paid

 

Link to post
Share on other sites
28 minutes ago, Freki said:

Land Value Tax, that is the one wealth tax no one can escape and will help keep the value of properties in check.

Yes but it needs to be THE ONLY tax.  As yet another addition it will achieve nothing. Just more government spending and more inequality and fascism/communism.

Edited by Killer Bunny
Link to post
Share on other sites
1 hour ago, MARTINX9 said:

Problem is you can be guaranteed the truly wealthy won't pay a penny!

And they'll continue to fund political misinformation to help keep themselves safe.

I benefit from all that, but I do wonder what people want done about us rich getting richer whilst everyone else gets poorer. 

I can guarantee one thing. Whatever happens, some idiot will pop up to shout "boo socialism!" when that's the least of our problems at present.

Edited by byron78
Link to post
Share on other sites
2 hours ago, byron78 said:

And they'll continue to fund political misinformation to help keep themselves safe.

What I don't get is the sheer number of apologists that are quite happy to support the elites and their soundbite arguments, even though it harms them.  It's worse than Turkey's voting for Christmas, it's closer to Turkeys explaining that without all the growth hormones, factory farming, and eventual demise they'd be worse off.

Link to post
Share on other sites

The premise of almost all taxation in UK is based at the point of a transfer of value. The closest we have to a wealth tax is council tax, though that totally ignores the value of the debt and only the asset value. 

There are problems with calculating wealth too. I might take out an interest free credit and splurge on that to get into debt and withdraw my savings from the bank to put myself in a net debt position. Furthermore most govts have some exemption for either debt, real estate, or provide a real estate allowance for the nominal value or complete value of a primary residency. Might burn a few BTL landlords though. 

Typically it is levied only on the wealthy since it's harder to hide that money but still possible. Ultimately the very wealthy would park it overseas and then be semi perm vacationists in the UK if they still liked it here. 

Land Value Tax still the best option imho. 

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 415 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.