Jump to content
House Price Crash Forum
Sign in to follow this  
bearbullfence

Lib Dems In Income Tax Cut Shocker

Recommended Posts

http://news.bbc.co.uk/1/hi/uk_politics/6293958.stm

So the Lib Dems want to cut 4p off income tax and place CGT on overseas people buying UK property (as well as raise SDLT and Inheritance tax and replace council tax with local income tax).

Will this make a difference to house prices? F*ck knows. But the Tax/Housing battleground is certainly hotting up. One thing is for certain, when the lib dems want to cut tax, the situation in this country must be bad.

Share this post


Link to post
Share on other sites

http://politics.guardian.co.uk/libdems/sto...2124418,00.html

Lib Dems plan 4p income tax cut

Matthew Tempest and agencies

Thursday July 12, 2007

Guardian Unlimited

The Liberal Democrats today proposed slashing the basic rate of income tax by 4p in a radical move to reposition the party.

The plan would see the rate cut to 16p in the pound, with the shortfall made up by green taxes and cutting tax relief for the super-rich.

With the party lagging in the polls in the wake of the "Brown bounce" and a reinvigorated Conservative party, the dramatic move would mean the party went into the next election as the out-and-out tax-cutting party.

The plan takes into account Gordon Brown's final budget as chancellor, which will cut the basic rate from 22p to 20p.

Sir Menzies Campbell, the Lib Dem leader, said that his proposed system was "fair, simple and green" and would benefit "the vast majority" of families.

The £19.2bn tax cut would reduce the rate to 16p - the lowest since 1916, when Britain's last Liberal prime minister was in Downing Street.

Launching the new policy this morning, Sir Menzies insisted it was a revenue-neutral package "targeted at those who need it the most".

The proposals come on top of a massive overhaul of the party's tax policies last year, which saw the Lib Dems switch to "green taxes" and scrap their previous pledge of a 50p rate for those earning over £100,000.

Today's planned cut would be partly paid for by axing £13.5bn of tax breaks enjoyed by high earners on pension contributions and selling assets.

The party also wants to reduce the stamp duty bill for all home sales under £500,000 and raise the threshold for paying inheritance tax to the same sum.

It would also simplify the tax code, by removing over 500 pages of regulations, the party claims, and bring gains made by non-residents on property situated in the UK within capital gains tax.

Picking up on the newly-topical issue of private equity taxation, Sir Menzies said: "It is unacceptable today that in this country equity fund holders pay less tax than those who clean their offices.

"Our plans will change this."

And capital gains rules introduced by Mr Brown as chancellor are letting some of Britain's wealthiest people pay "little or no tax at all", he said.

Vincent Cable, the party's Treasury spokesman, added: "There is a public mood that suggests that what we call the super-rich should pay significantly more.

"We don't want to drive people away but there is a case for re-balancing, which is what we plan to do."

The party also has a long-standing commitment to replace council tax with a local income tax, which, it is estimated, would entail a levy of between 2-4% on earnings.

Sir Menzies said: "Our new proposals will put fairness at the heart of the tax system.

"Low- and middle-income earners in this country shoulder too heavy a tax burden.

"By cutting the basic rate of national income tax by 4p in the pound the Liberal Democrats are proposing the lowest basic rate since 1916.

"By reforming stamp duty and inheritance tax we will ensure that people who were not originally intended to pay these taxes no longer do so.

"The unacceptable reality is that in Britain today the poorest pay a higher proportion of their income in tax than the super-rich.

"Under our proposals tax cuts for the majority will be paid for by the wealthy minority, as well as those with environmentally damaging lifestyles.

"Only the Liberal Democrats have produced a costed plan to create a tax system that is fair, simple and green. I challenge Gordon Brown and David Cameron to back up their rhetoric by endorsing our plans." The party said its plans had been checked over by the independent Institute for Fiscal Studies.

Mr Cable added: "The national tax cuts will be paid for by abolishing the capital gains tax break, which allow the very rich to pay a lower tax rate than a cleaner, as well as only providing tax relief for pensions at the standard rate and raising taxes on polluters.

"Taken in conjunction with the abolition of council tax, these policies benefit the vast majority of families."

Following the launch of the policy paper, Sir Menzies will visit Sedgefield, where a byelection is due next Thursday following Tony Blair's decision to step down as MP for the area.

Edited by studdymx

Share this post


Link to post
Share on other sites

Any money you save in income tax will be swallowed up in their proposed 'local income tax'.

(The unemployed, pensioners, stay at home mums need not worry).

Priced out of owning a home due to simple demographics? We'll stuff you to pay for all the local services you never use too. :angry:

Talk about adding insult to injury!

Edited by muggle

Share this post


Link to post
Share on other sites

My fear is that all parties will resort to regresssive "Sin Taxes" to continually pay for our bloated inefficient government.

When will they realise big government doesn't work!?

Edited by studdymx

Share this post


Link to post
Share on other sites
Any money you save in income tax will be swallowed up in their proposed 'local income tax'.

(The unemployed, pensioners, stay at home mums need not worry).

Priced out of owning a home due to simple demographics? We'll stuff you to pay for all the local services you never use too. :angry:

Talk about adding insult to injury!

I totally agree with this. I would hate for this policy to come in. I have a choice of either living with my parents, or living in a HMO (house of multiple occupation) as I cannot afford my own 'reasonable' place; either way I would be screwed.

Infact, I might email the Lib Dems and get their thoughts on this.

The 3 main political parties are all crap! It's a plutocracy out to screw the young!

Share this post


Link to post
Share on other sites
Guest X-QUORK

My understanding is that the 4p income tax cut will be paid for by increasing green taxes and income tax for the super-rich, seems eminently sensible to me.

Share this post


Link to post
Share on other sites
My understanding is that the 4p income tax cut will be paid for by increasing green taxes and income tax for the super-rich, seems eminently sensible to me.

Yes, sorry I was refering specifically to the local income tax to replace the council tax. IIRC the swap from counil tax to local income tax will be tax neutral, meaning people like myself will end up paying more and pensioners, those on benefits will pay less (so no insentive to downsize). Whereas, as muggle points out, it's those that will be paying more local tax which least relies on council services (although, the only one I can think of where this is not the case is rubbish collection).

This policy would also encourage families to split up, as there is less benefit to live together in the family home to save $$$.

Share this post


Link to post
Share on other sites
Yes, sorry I was refering specifically to the local income tax to replace the council tax. IIRC the swap from counil tax to local income tax will be tax neutral, meaning people like myself will end up paying more and pensioners, those on benefits will pay less (so no insentive to downsize). Whereas, as muggle points out, it's those that will be paying more local tax which least relies on council services (although, the only one I can think of where this is not the case is rubbish collection).

This policy would also encourage families to split up, as there is less benefit to live together in the family home to save $$$.

Increasing council tax would be the cheapest way to fix the shortage of family homes, by forcing the 'overhoused' pensioners to downsize. Councils are unlikely to do this though, because most councilers are pensioners and they will look after their own, and the government have capped council tax rises at 5% PA.

However, UK local government budgets are already coming under significant pressure from the spiraling social care costs of a burgeoning elderly population. But the boomers are only just starting to retire. So in the near future councils & the governement will have to face a difficult choice; raise council tax significnalty, or increase means testing for social care. Both will place very siginficant finacial pressure on overhoused pensioners, many of whom will be forced to downsize.

IMO this will happen within the next 5-7 years

More info on demographics on this GEI thread:

http://www.greenenergyinvestors.com/index....c=1132&st=0

Edited by Sonic the Hedge Fund

Share this post


Link to post
Share on other sites

Like David Cameron, the Lib Dems are not willing to face the real problem. Why does the government need so much tax? The money is not being used wisely or competantly. One could even argue that some tax spending undermines society. Young couples are deliberately living apart to get handouts. The performance of many private companies (consultants, railways, civil projects etc) is being undermined because they have become too reliant on soft contracts and subsidies from government departments.

Share this post


Link to post
Share on other sites
Increasing council tax would be the cheapest way to fix the shortage of family homes, by forcing the 'overhoused' pensioners to downsize.

Perahps council tax should be banded according to the number of bedrooms over the number of occupants?

Families pay less. Poorer pensioners in smaller accomodation pay less. Only the overhoused have to pay more, and they should be able to afford it!

Share this post


Link to post
Share on other sites
Perahps council tax should be banded according to the number of bedrooms over the number of occupants?

Families pay less. Poorer pensioners in smaller accomodation pay less. Only the overhoused have to pay more, and they should be able to afford it!

most retarded idea ever

bedrooms are not standard in size! a square footage idea would work better

Share this post


Link to post
Share on other sites
Guest Skint Academic
My understanding is that the 4p income tax cut will be paid for by increasing green taxes and income tax for the super-rich, seems eminently sensible to me.

Taxing the super-rich doesn't work as they have the money to pay accountants to minimise their tax bills and are also the ones who can easily move to a different country. In fact I thought Labour tried this last time they were in power.

No, if you want to get the most from your tax you increase it for those people who have no other choice but to pay it.

Share this post


Link to post
Share on other sites
Do you have to be such a knob?

it was a stupid idea, what did you want me to do, send him flowers and candy?

Share this post


Link to post
Share on other sites
it was a stupid idea, what did you want me to do, send him flowers and candy?

It may be a bad idea, but it's been tried before! :(

"Window Tax

...The tax was introduced in 1696 under King William III and was designed to impose tax relative to the prosperity of the taxpayer, but without the controversy that then surrounded the idea of income tax. At that time, many people in Britain opposed income tax, on principle, because they believed that the disclosure of personal income represented an unacceptable government intrusion into private matters, and a potential threat to personal liberty. In fact the first British income tax was not introduced until the late 18th century and the issue remained intensely controversial well into the 19th century. Window tax was relatively unintrusive and easy to assess. The bigger the house, the more windows it was likely to have, and the more tax the occupants would pay."

wikipedia

Share this post


Link to post
Share on other sites

Could be a good move for the Lib Dems. They've always been an anomaly to my mind as there's enough difference between Social Democracy and many forms of Liberalism for them to always be torn between people who wanted to be a kind of Labour-lite and people who wanted a small state enterprise culture but without the elitism, privilege and hypocracy of Toryism.

If the Lib Dems came out with a low tax, no favours for big business, much more robust and vocal pro civil-liberty stance, they could actually get some traction. Of the big parties, Vince Cable's the only one that spoken repeatedly against the debt-bubble from the beginning when the Tories were still in awe of the Iron Chancellor.

Actually, if you look at the Liberal Party (the people who didn't go Lib Dem) the policies are pretty good compared to the big three.

http://www.liberal.org.uk/

Edited by CrashedOutAndBurned

Share this post


Link to post
Share on other sites
most retarded idea ever

bedrooms are not standard in size! a square footage idea would work better

Another retarded idea, you seem to be suggesting the bigger the house, the more you pay - OK, let's apply it nationally - that way the small London houses will pay less.

OR, is what you really mean, the people with big houses probably earn more, so make them pay more and tyhen divide it round the country, so it's only the rich who pay most (the ones who normally use least and already pay most as it is... (based on house values).

The Poll tax is fairer insofar as each adult pays - no matter what the income is - I already pay my income tax at very high levels - if you create areas where there is also a local income tax, then you will simply end up with ghettoes where high earners avoid - and these will be the ones where there are lots of low/non-earners to mean there is a funding shortfall - cracking idea that one....

Share this post


Link to post
Share on other sites

Well they'll be getting my vote. Am completely disenchanted with the big two and the Lib Dems policies seem eminently sensible. Vince Cable is the only politician whos had the courage to tell it like it is with respect to the economy and housing market. The tax system does need changing, it cant be right that we have people owning billions who pay less tax in % terms than their cleaners. Right now the Lib Dems are the only radical party we've got and this country needs radical policies now.

Share this post


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...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 355 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • 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.