Lib Dems Levy on Properties valued at over £2m

[Sneds]

I was wondering if I could get some opinions on this levy that was proposed by the Lib Dems back in September.

The levy was initially on properties over £1million and it was 0.5% on every £ over £1million. E.G - A house valued at £1,000,001 would pay 50p in tax.

This was since revised in early December where Lib Dems proposed that a 1% levy would be charged on properties over £2million.

The main aim of this new tax is to increase the starting rate of tax at £10,000 instead of the £6,475 (I think) it is at the moment. The Income Tax change is said to help 4million low paid workers.

I wanted to hear peoples opinions on either the levy or the income tax adaption. Do you think it would actually help the economy? x

 

[Parmo]

They won't get in so they can afford to day dream about taxing the poor to pay the work shy.

 

[brendy]

Bring the troops home..
read this, its from march 2008, there is no way its worth it.
http://www.guardian.co.uk/commentisfree/2008/mar/17/theiraqlegacyfinancialcost
No wonder life is getting so bloody expensive, expecially when we and our national debt are paying for it.
On the middle east humane side, let the UN sort that out, they will never listen to nor abide Western Ideas so why constantly try?

 

[brendy]

Paying the lazy, Ive been thinking of this a lot recently.
What sends me to the fair is the amount of hand outs wasted by the dole outs. I know some folks genuinely cannot get jobs nor can actually even work and for those I really do sympathise.

My idea would be to hand out vouchers redeemable against all but luxury items, foods, drinks, cleaning materials, clothes etc.
Very little money should actually change hands, in my eyes it would employ more people to administer but it would also save sooo much money in wastage and healthcare related extra overheads.
It would also be the vital push needed to get those work shy folks back into meaningful employment.

 

[Sneds]

Paying the lazy, Ive been thinking of this a lot recently.
What sends me to the fair is the amount of hand outs wasted by the dole outs. I know some folks genuinely cannot get jobs nor can actually even work and for those I really do sympathise.

My idea would be to hand out vouchers redeemable against all but luxury items, foods, drinks, cleaning materials, clothes etc.
Very little money should actually change hands, in my eyes it would employ more people to administer but it would also save sooo much money in wastage and healthcare related extra overheads.
It would also be the vital push needed to get those work shy folks back into meaningful employment.

Employees earning over £10,000 would be better off - by about £700 a year - and so would very low earners. The change could be funded by closing existing loopholes, including standardising the rate of pension tax relief and equalising capital gains tax with income tax. A £10,000 starting rate for income tax would reward hard work and reduce dependence on welfare payments. Most importantly, it would help those people who most need extra financial assistance.

Lib Dem blog: SOURCE

 

[RGDave]

The Lib Dems are always into some crazy schemes, all based on taxes of some sort. I approve of some, this one makes no sense to me at all.

Would I support an "ad valorem tax"? - absolutely.

Folk at the bottom of the ladder should pay less tax and those at the top more, that's a no-brainer.

The question is how to make it (the tax system) so it brings in more money without alienating voters?

 

[Sneds]

Ideally we'd scrap all of the current taxation system and start again imo, not with the foundations of a tax system which has just evolved since the year dot.

I would have hoped that a technological evolution may have helped the cause, but as nobody can find a wholesome idealistic environment to live in where tax is completely and fully fair, it will never happen.

At the end of the day, people will never be happy. Some high earners will never accept that it's generally accepted that more money is skimmed off their wages so that we can have a civilised society (especially when they're paying taxes for NHS, education etc and then getting private healthcare and private education, so in effect paying for these services twice)And there will always be people caught in the poverty trap who will scrounge off benefits and won't work.

Personally I think people are far too selfish and won't consider others which is the main stumbling block to any rational reform of the tax system, basically if the tax affects you positively you like it, if it reduces your income, you dislike it and grumble about it constantly. People fail to see the bigger picture.

Until utopia, we'll continue with the current situation. Get ready for 20% VAT imo x

 

[SS2]

Won't make much difference when the country needs to spend £40 billion per annum just to service its debt. All this talk of "halfing the deficit in 5 years" means that in 5 years we will still be borrowing around £90 billion a year. It doesn't mean we'll actually pay off some of the huge debt hanging round our necks like a giant collective albatross.

Oooooh, moderators ! Do I win £5 for mentioning the "albatross" word in a non-golfing context on a golf forum ?

 

[PhilTheFragger]

What concerns me is will the cost of surveying all these properties, admisistering the scheme, collecting the dosh, cost more than the revenue it produces.

Just like the recent MP expenses scandal Spending £6million to reclaim 1 million worth of dodgy expenses, God give me strength.

Another thing that gets up my nose as a Sole trader is VAT.
I have to charge it, administer it and pay it to HMRC.

I get no benefit from it, the rules and rates can change and I have to deal with it. Why not let retailers keep 3% of what they are due to pay as an admin fee.

makes my blood boil

Just wait till the revolution comes

Fragger

 

[Sneds]

Regarding the property levy, I have just finished a bit of coursework on it, which is why I wanted to know what other people thought. Like fragger, I agree that the economic efficiency of the tax would be absurd. It would be very costly, especially to revalue the properties.

Fragger, regarding VAT - the benefit you get is being able to reclaim taxes on your purchases and expenses. Being VAT registered doesn't help everybody though, unfortunately x

 

[thecraw]

When someone comes in and promises to reduce the amount of tax I pay at the pumps then I will listen to other tax reforms and ideas.

Quite frankly I'm sick to the back teeth of funding junkies and lay abouts. I'm sick of the billions spent from hard working tax payers on keeping prisons stocked with luxury items and goods and don't even start me on human rights which has gone right off the radar!

 

[PhilTheFragger]

Fragger, regarding VAT - the benefit you get is being able to reclaim taxes on your purchases and expenses. Being VAT registered doesn't help everybody though, unfortunately x

Agree, but it is only kosher business purchases and expenses. there is no profit in it. but it is the admin cost of the VAT exercise that gets me. I probably spend a good 2 hours per month just on VAT, coz if you get it wrong they are down on you like a ton of golfballs.

Thats 2 hours I could be sorting out my swing

 

[AuburnWarrior]

People, we are the only democracy ruled by the minority.

Prisons - should be a punishment but are far too lax. Why? Because certain people keep fighting for the rights of the minority. Why? They waived all rights when they commited their crimes.

Welfare system - should be there to support the needy, not allow filthy chavs to buy better cars/TVs/stereos than I have. It's too easy for them to claim - why? Because certain people keep fighting for the rights of the minority. Go and get a job!!! If there aren't any jobs in your area - move.

NHS - it should be used to treat sickness and disease - not change John into Denise because he's a tad confused. The NHS was built with real sickness in mind, it doesn't have the funding for boob jobs, sex changes or 'managers' on more money than Doctors.

Iraq/Afghan - WHY are we even there? Iraq - the only reason it was invaded was to remove Saddam - why? Because he's a dictator who's done some nasty stuff. OK - then we'll be invading Noth Korea then will we??? And Iran??? And Cuba??? And any other country with a dictator???
Afghan - this is a war that'll never be won and to add insult to injury, our Army aren't even properly equipped - why? because the money's gone to confused John as he's having his kn0b removed!
Our actions, coupled with the US are bullying of the highest order.

This country's fast going down the pan - I'm pinning all of my hopes on winning the lottery and going to a nice country - like Germany.....

 

[Sneds]

Fragger, regarding VAT - the benefit you get is being able to reclaim taxes on your purchases and expenses. Being VAT registered doesn't help everybody though, unfortunately x

Agree, but it is only kosher business purchases and expenses. there is no profit in it. but it is the admin cost of the VAT exercise that gets me. I probably spend a good 2 hours per month just on VAT, coz if you get it wrong they are down on you like a ton of golfballs.

Thats 2 hours I could be sorting out my swing

Regarding whether there is profit or not in it, maybe you should see how your P+L account is if you couldn't claim back VAT? The way I see it, if you couldn't claim back VAT then your supplies got a whole lot dearer - eating into your profit. Ultimately though, it depends on your business. VAT might be a terrible thing for you.

I do think that £68000 is a very low amount to become VAT registered. Anybody who is just surviving is going to have at least £68000 worth of sales. I think the tax would be better if it was about doubled for sole traders. x

 

[brendy]

Afghan - this is a war that'll never be won and to add insult to injury, our Army aren't even properly equipped - why? because the money's gone to confused John as he's having his kn0b removed!

Fantastic! haha, perhaps he could get a job in the army with his new tackle?

Has anyone noticed how human rights only seem to apply to those who actually wrong law abiding folks?

 

[viscount17]

levy only on property over £2M - nice in theory but I'd bet that those owning such property have tax avoidance down to a fine art and pay less tax than most of us.

apparently there is a new goverment 're-educate the populace' campaign to persuade us that the majority of single parents aren't on benefit. costing how much?

 

[AuburnWarrior]

Afghan - this is a war that'll never be won and to add insult to injury, our Army aren't even properly equipped - why? because the money's gone to confused John as he's having his kn0b removed!

Fantastic! haha, perhaps he could get a job in the army with his new tackle?

Has anyone noticed how human rights only seem to apply to those who actually wrong law abiding folks?

I've often wondered about that. Where are the rights of the victims?

I can see it now - Steve's been stabbed - he gets £500 from the victim fund. Jazz-i (as his facebook page states) gets 15 months in a prison that as per it's opening statement 'is a blend of regulation, harmony and Butlins'!!! So, Jazz-i can look forward to a 50" LED Bang & Olufsen TV, Sony Blueray surround sound system (fully iPod compatible) and a top spec Sony laptop. He needs the laptop so that he can keep in contact with the real world. PLEASE NOTE: he will not be allowed to use facebook, twitter, etc although the authorities reckon he will because they're cheeky these criminals and they try and get away with anything!!!
He'll get to use the brand new, state of the art gym and the prison are pleased to announce that Sir Steve Redgrave will be the new head of coaching.
It'll also be Jazz-i's chance to meet new friends and learn new skills.....

Meanwhile, Steve's marriage has collapsed and he's lost his job due to the fact that he can no longer go out due to his fear of reprissals. Still, he's got his £500 - why's he moaning?

 

[Snedds_Good_Knee]

Without the socialist ideology behind a National Health Service, my mate Snedds_Bad_Knee would still be trouble!

Taxing everybody to enable everybody to access public services is fantastic, and we should celebrate the fact this country is so civilized as to do so.

If I was in power I would introduce a "Bore Tax" and levy it on the countries most boring sports ... Bowles, Darts .... Golf.

 

[AuburnWarrior]

Without the socialist ideology behind a National Health Service, my mate Snedds_Bad_Knee would still be trouble!

Taxing everybody to enable everybody to access public services is fantastic, and we should celebrate the fact this country is so civilized as to do so.

If I was in power I would introduce a "Bore Tax" and levy it on the countries most boring sports ... Bowles, Darts .... Golf.

Another cracking post!!! Well done son......

Go and play with the cars on the M1!!!

 

[Ethan]

Anyone who thinks the NHS has a socialist ideology hasn't been paying attention for the past 20 years. Have you not heard of the internal market, PFI, Foundation Trusts, ISTCs, Polyclinics and a bunch of other ways in which the NHS is being handed over to the private sector with the net effect of money pouring out and care going to hell?