UK Conservatives raise Capital gains tax to 40%

[Angrycat]

Quote from Ghost of Cutten:

This was extremely predictable as the rate was only cut a couple of years ago, just before the whole financial crisis kicked off. With the lurch towards the politics of pitchforks there was no real way to justify an 18% tax on billionaires while police officers and teachers pay 41% marginal rate. OFC the best solution would be cut income taxes down to a reasonable level, but that is unlikely to happen any time soon as it would require evisceration of half the welfare state.

Anyway, this just confirms the UK's slide back to Euro-socialism. Pretty soon it will become a poorer version of Sweden or France.

One nice aspect though is that it makes the pound sterling an even better long-term short. Parity against both Euro and Dollar is a more and more likely prospect in the coming years.

Oh, and there is more to come. Check out Vince Cable's promises on banker bonuses:

"1. No cash bonuses: �2,500 is your limit. You�ll have to wait 5 years to redeem them. And Clegg will stop you from using them as security in the meantime.

2. Ban on board level bonuses: bank directors will have to make do with salary and �golf club membership�.

3. No bonuses at loss-making banks: if you�re making millions and but your bank is making a loss, you won�t be allowed a discretionary bonus. A real vote winner at RBS.

4. Tell everyone what you�re paid: publish names of all bankers earning more than �200,000. (Every banker, of course, would then be appalled that he�s earning less than Fred X and ask for a pay rise.)

5. Punish the directors: If the bank breaks guidance on bonuses, the board members are personally fined."

So, britain doesn't want a financial sector then? Okay.

 

[morganist]

Quote from Angrycat:

"Conservatives" in the country of Fabian Socialists is not the same thing as American conservatives.

In the socialist countries of Europe, the "conservatives" are only slightly to the left of the far left wing of the Democrat party whereas the European "liberals" are very far to the left of the far left wing of the American Democrat party.

More productive people will leave the UK and it will turn into the nightmare it was in the 1970's and it will eventually become another Greece.

Greece.

That's where the West is headed because when you start giving everyone the right to other people's labour, you take away any incentive to labour and everyone ends up living in shit. When you punish wealth creation, you don't get wealth creation.

meow!!

 

[Ghost of Cutten]

Quote from MohdSalleh:

40%?Huh policemen earn that much in Britain?

41% (40% income tax + 1% "social security") rate comes in at around £44k per annum, so it doesn't take much to trigger it. Someone who has been a policeman or teacher for about 10 years will normally start getting into that salary bracket.

Then there are the numerous public sector jobs in London, the ones you see in the back of the Guardian each week. "Diversity counsellors" on 100k a year, 200k for PR jobs at quangos (funded by the public of course). It makes the Greeks look restrained.

 

[southall]

Quote from Ghost of Cutten:

This was extremely predictable as the rate was only cut a couple of years ago, just before the whole financial crisis kicked off. With the lurch towards the politics of pitchforks there was no real way to justify an 18% tax on billionaires while police officers and teachers pay 41% marginal rate.

the rate was set at a fixed 18% to increase revenue. it was not a tax cut.

previously with indexation allowance many people paid less than 18%, some only 10%.

 

[IanMacQuaide]

Quote from MohdSalleh:

Mamma Mia. They are giving Obama some ideas.

That's exactly what I was thinking when I posted that.

 

[MohdSalleh]

If they are running out of money, they should scrap the 2012 olympics

 

[Ghost of Cutten]

Quote from southall:

the rate was set at a fixed 18% to increase revenue. it was not a tax cut.

So it was cut to raise revenue and now it is being increased to raise revenue? Perhaps you can spot the flaw in that reasoning

 

[Angrycat]

Quote from Ghost of Cutten:

So it was cut to raise revenue and now it is being increased to raise revenue? Perhaps you can spot the flaw in that reasoning

My bet is they cut to raise revenue but got no revenue increase because the market tanked.

So, obviously, they now think that they aren't getting the revenue because of the tax cut. That's government logic for you.

Just like people here think that the reason the U.S. stock market got more volatile for a while is because they eliminated the uptick rule and not because the shit hit the housing fan.

 

[Angrycat]

Quote from MohdSalleh:

If they are running out of money, they should scrap the 2012 olympics

WAAAAAAY too logical for government.

Remember that show "Yes, Minister"? Should be required viewing

 

[heypa]

A coalition of liberals and conservatives is an hermaphroditic aberration and is patently unworkable unless the conservative compromises.
Great first step confirming the above.
P.S. I agree with the comment on " Yes.Minister". Great show.