Sunday, June 28, 2009
Net tax zero
Recession leaves £25bn shortfall in welfare bill
If you buy a BTL and assign to a social housing recipient in receipt of LHA, the taxation on your wage is offset by receiving the government stipend for housing. For somebody on 30K a month, tax rate of about 1K, but offset by LHA of about £750. By not allowing rents to fall with unemployment, the government are reducing their tax base along a property divide. For all the recent talk of benefits scroungers, we should remember they personally get £240/month, this is not what is running up the outrageous debts of government.
Posted by stillthinking @ 11:37 AM (3162 views)
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