Category Archives: Tax

Council tax may rise by £2,000 – but how can people pay?

Potential council tax rises could constitute the straw that breaks the camel’s back for UK residents struggling with the cost of living.

Here’s the team on Good Morning Britain, discussing whether people will end up living in prison – rather than their homes – serving sentences for non-payment:

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Can we trust Jeremy Hunt to fix the UK economy? [VIDEO]

UK Chancellor Jeremy Hunt has said “eye-watering” decisions on tax increases and public service cuts will be made in his Budget on Thursday. But can we trust him to make the right choices?

Labour’s Chris Bryant doesn’t think so. On the BBC’s Politics Live, he pointed out just a few of the financial disasters inflicted on the UK by a Conservative government and raised fears that Hunt will demand more from the people who have the least.

Watch out for the party political nitpicking from Conservative Siobhan Baillie, who doesn’t have a leg to stand on but still tries to undermine the solid points Bryant makes.

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Kwarteng is in a hole – and he’s STILL digging out unpopular policies!

Amazing.

Having realised his decision to cut the 45p tax rate was unpopular, Kwasi Kwarteng has reversed it (alongside his prime minister, Liz Truss). He will also bring forward his budget from November 23 to this month, to address concerns that it is unfunded and unviable.

But then he ruined it all by announcing new policies that are going to send voters running to other parties. They include:

£18 billion of cuts to public services – the amount that would be raised by a rise in Corporation Tax – and this is just the start.

A real-terms cut in benefits (yet to be announced but understood to be on the way).

And he’s still:

Removing the cap on bankers’ bonuses.

Cancelling the rise in Corporation Tax.

Here’s more in-depth information:

Bear in mind what Phil Moorhouse says about the reason the Tories shaft poor people: because they don’t vote in great enough numbers to harm Conservative electoral chances. It’s only when their cruelty seems likely to affect middle-class voters (like when many of them claimed Universal Credit during Covid-19 lockdown) that they make political – not economic – decisions that are intended to placate those voters.

This is the reason Tory MPs are developing a social conscience in the face of Truss’s – and Kwarteng’s – policies; they don’t want to upset their voters.

So if you’re a benefit claimant who has been shafted by Kwarteng and his bandits time and again – but you don’t vote – I have to ask: why do you have such a death wish?

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Truss challenged: will she link benefits to inflation or punish the poor?

In the midst of the Conservative Party Conference, new prime minister Liz Truss is facing a hard challenge to her leadership.

Here’s Professor Tim Wilson to explain:

Linking benefits to inflation was a Boris Johnson policy that – like so many others – he never got round to (probably because he was too busy partying, giving away perks to Tory friends and donors, and meeting Russian oligarchs without the benefit of Foreign Office chaperones).

Ms Mordaunt, who is Leader of the House of Commons, is quoted by BBC News as having said,

“We want to make sure that people are looked after and that people can pay their bills. We are not about trying to help people with one hand and take away with another.”

This made Truss look very bad when she responded that the government has to be “fiscally responsible” and bring down the national debt.

She’s saying that cutting the amount of money going into the economy from private sources – which is all the national debt is – is more important than the homes, lives and livelihoods of millions of UK citizens.

And those millions include people in work whose wages have been squeezed so low – by the Tories over the last 12 years – that they have to claim benefits simply to try to make ends meet.

Failing to link payments with inflation will mean that benefits will no longer fulfil that function after Tory policies ensured that inflation skyrocketed.

So Truss’s choice is to honour Johnson’s pledge and find a different way than cutting benefits to reach her own target, or to stab the UK’s most vulnerable people in the back. And that is now public knowledge.

The reason it is now public knowledge is Penny Mordaunt. How long do you think she is going to keep her job?

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Tory MPs defend the tax cut u-turn – but what do Tory VOTERS think of these people?

Compare and contrast:

First, here’s a selection of Conservative MPs (including a wonky-spectacled Chancellor Queasy Kwarteng) working hard to justify themselves:

Now let’s see what their own voters think of them…

… Oh dear.

The best that can be said is that they all approve of the tax u-turn. But that means they’re admitting that their government – that they chose – got their first big decision wrong.

And some of the comments were a lot less positive.

And Kwasi Kwarteng’s speech didn’t get the ovation he would have wanted. Most people stayed in their seats and This Writer has a suspicion that many of them didn’t even bother to clap.

I think these Tories are in deep, deep trouble. But they’re all working hard to avoid admitting it.

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Tories scrap 45p tax rate cut amid huge controversy

Liz Truss and Kwasi Kwarteng: 10 days ago, cutting the 45p tax rate was a proud announcement for them. Now it has become a millstone around their collective necks.

A plan to cut the 45p top tax rate for high earners has been scrapped by Chancelllor Kwasi Kwarteng just 10 days after he announced it.

Kwarteng reversed the decision after a weekend of growing controversy surrounding the policy in which his prime minister, Liz Truss, appeared to try to throw him “under a bus”:

Note that she initially tried to defend the policy using the language of her bosses in right-wing think tanks like the Institute for Economic Affairs, saying it was an attempt to simplify the tax system and lower the tax burden.

But then, realising that interviewer Laura Kuenssberg was saying the policy was hugely unpopular with the public, she backtracked, saying that it was a policy devised by Kwarteng, which was not properly discussed in Cabinet.

And now, as Kwarteng prepares to give his speech to the Tory Party Conference, we have this:

Apparently there was a rebellion within the Conservative Parliamentary Party over the “toxicity” of cutting the top rate of tax amid a cost-of-living crisis for the vast majority of people in the UK.

And Truss was afraid that the rebellion would dominate the conference.

It’s a huge u-turn for a prime minister who had claimed she was “prepared to be unpopular”. It seems she wasn’t prepared for it after all.

The BBC has reported that Kwarteng said the proposal

had become “a massive distraction on what was a strong package”.

“We just talked to people, we listened to people, I get it,” he added.

Mr Kwarteng told BBC Breakfast the proposal was “drowning out a strong package”, including support for energy bills, and cuts to the basic rate of income tax and corporation tax.

Asked whether he owed people an apology, he said: “We’ve listened to people. And yeah, there is humility and contrition in that. And I’m happy to own it.”

On how the decision was made, he said: “The prime minister decided not to proceed with the abolition of the rate.”

However, pressed on whether it was her U-turn, Mr Kwarteng added: “No, we talked together, I said this is what I was minded to do and we decided together, we were in agreement that we wouldn’t proceed with the abolition of the rate.”

Asked if he had considered resigning, he said: “Not at all.”

He is on his way out, though.

Remember, we’ve been told that the 45p tax rate doesn’t actually bring much money back into the Treasury; it isn’t the cause of the economic upheavals we have seen over the last week.

It didn’t crash the Pound.

It didn’t crash the pension funds.

It hasn’t put the cost of imports up beyond the benefit to ordinary people of the other tax cuts.

We are heading for worse problems over an autumn and winter that Truss and Kwarteng have deliberately turned into a waking nightmare for millions of us.

What will these two con tricksters blame next?

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Labour grandee calls for abolition of the House of Lords

Gordon Brown has published a document calling for a wide range of reforms of the way the UK is governed, including better tax-raising powers for devolved governments and abolishing the House of Lords, to be replaced with an elected constitutional guardian.

Watch:

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The accession racket? King Charles won’t pay inheritance tax from the Queen

King Charles III: is he laughing all the way to the bank?

Don’t you find it odd that, the more money you have, the fewer taxes you pay?

Look at the new King, Charles III. He’s not paying any inheritance tax on the Crown Estate’s £15.2 billion in assets, which include the royal archives and the royal collection of paintings, which cannot be sold by the King and are surrendered to the government in return for a grant.

In all, 25 per cent of profits from the Crown Estate are given to the royal family as the Sovereign Grant.

The rest of us would pay 40 per cent of any assets valued at more than £325,000. But we can’t complain, can we? The King is already paying 75 per cent of his assets to the government, from the look of it.

But wait – there’s more:

Separately, Charles also inherits from the Queen the Duchy of Lancaster, a private estate that includes portfolio of lands, properties and assets held in trust for the sovereign.

He is exempt from inheritance tax on these assets, among others, in order to preserve “a degree of financial independence from the government of the day”.

But if he’s already getting profits from more than £6 billion in assets in the Crown Estate, why does he need this? It made around £22 million in revenue in 2021.

It is allowed because, under an agreement with the John Major Tory government in 1993, assets passed from a former to a current sovereign are exempt from taxation.

But the then-Queen agreed to pay income tax voluntarily around that time, and Charles III has agreed to do the same.

Assets passed from the former Queen to anybody else are liable for Inheritance Tax.

It isn’t a perfect system, is it?

That being said, This Writer would like to see documentary evidence showing what the state would receive if there were no agreements with the government, compared with what it receives as it is.

Who benefits the most?

Source: King Charles will not pay tax on inheritance from the Queen | King Charles III | The Guardian

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Prime Minister’s Questions with Liz Truss – she answered, but not well

This Writer was away from his desk yesterday (Wednesday, September 7, 2022) because I was on a mercy mission – taking a family member to hospital.

So I’m relying on this video and BBC News (heaven help me!) for my information:

Interesting stuff.

So Liz Truss actually bothered to answer the questions. Was this because she doesn’t have the imagination to distract us with nonsense or divert us onto another subject? I find the latter likely but the former incredible, considering the amount of nonsense with which she regaled us all during her Tory leadership election campaign.

Ah, but her answers were useless. That’s more familiar ground. In fact, it seems clear that if the energy generation companies aren’t going to be made to subsidise our increased bills with their profits (which would be an excellent way of ‘chilling’ them – discouraging them from charging so much in the first place), the onus will fall to the general public.

This seems likely to take the form of a loan scheme, under which households will be forced to pay back the extra cost of their energy bills over a longer period of time, alongside whatever their energy will cost at that time.

This has the potential to put us all in perpetual debt. It reminds This Writer of an idea called the zombie economy, in which the working classes are kept in perpetual slavery to the business owners and politicians because they are forced to keep working in order to service ever-increasing debts that have been foisted on them, along with high government taxes.

Doesn’t that seem to be what’s happening?

Truss contradicted herself somewhat by saying she wants a high-wage economy. That would undermine the zombie plan – if it were true – but, as Phil Moorhouse points out, Boris Johnson said he wanted a high-wage economy too – and then told everybody to get back to work, the instant they started demanding it.

She said her energy plan would help business – so now we all want to know howIf she doesn’t help businesses, they’ll go under, and that’s a bad thing.

There’s a good sideswipe in the clip at the idiot Austerity policy of David Cameron and George Osborne: cut spending and you shrink the economy. The more they cut government expenditure, the lower tax receipts fell – because the money the government had been spending generated growth. And what did they do in response? They repeated the same mistake, expecting a different result (which is now a well-known definition of madness).

It seems tax-cutter Truss wants to repeat the mistake again – this time by cutting tax receipts first and claiming there isn’t the money to carry on spending on public services (the infamous Starve The Beast policy).

Truss said she would publish her energy plans today (Thursday) – meaning she’ll face a full week of debate in Parliament. That could be embarrassing – unless she merely announces aims.

And it seems she wanted to launch a catchphrase: “You can’t tax a country to growth, you know!” Except you can. History shows a clear correlation between GDP and tax revenues.

She said cutting Corporation Tax would lead to more businesses relocating to the UK – but in fact they are leaving, because of Brexit (which Truss used to oppose but now supports because she is in turn supported by the European Research Group loonies).

And Truss thinks the Northern Ireland Protocol contradicts the Good Friday Agreement – when it in fact protects the Good Friday Agreement.

So, Liz Truss actually answered the questions. But considering the nature of her answers, we can make an easy conclusion:

She is out of her depth.

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Here’s why Liz Truss’s tax policy is rubbish

Incoming UK prime minister Liz Truss wants to cut taxes in order to “give people back more of their own money”.

It’s a terrible idea at this time.

Cutting taxes might be acceptable if working people were actually receiving a decent amount of pay, but they aren’t. Conservative government policies – the policies of Liz Truss over the last 12 years – have consistently cut pay so that working people are now taking home thousands of pounds less per year, in real terms, than in 2010.

In contrast, the richest people in the country – the infamous “one per cent” – have hugely increased their income over the 12 years of Tory misrule.

So cutting taxes won’t help working people at all (and of course many millions of us don’t even earn enough to be taxed at all, because of Tory misrule) – but will make, potentially, billions of pounds available to people who are already billionaires.

This is economic suicide. To boost economic growth, the money needs to go to the people at the lowest level of society – because then it will travel the furthest through the system before finally being taxed out of it.

And the further money travels through the system, the higher the economic multiplier – the benefit it brings to the economy.

Truss’s plan will suck money out of the economy and bring the UK to a standstill.

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