Emergency Budget

[Biker Biggles]

Stupid anomally example-----Elderly sisters live together for donkeys years and one dies leaving the other with a tax liability.

I work hard so I have enough for me and my dependants to live on,not so I can die with loads of money to hand out to others.I actually think there is something wrong with a culture that relies on inheriting money made by someone else for its standard of living.Perhaps thats why our economy is in such carp----not enough emphasis on creating wealth,and too much on trying to inherit it for nought.

[yorkie_chris]

Where is the emphasis on NEEDING to inherit money?
You pay your mortgage or rent or whatever, you don't go around thinking "oh I hope my Da pops his clogs soon so I can buy myself a new fridge"


Creating wealth so your kids can enjoy it, surely fair policies about savings and inheritance encourage this? If anything your absurd suggestion would be better pointed the other way as it is the attitude which promotes unfeasible levels of debt for pointless consumer products.

Which one has created a problem, your Grandparents sensible savings, or the *rseholes down the road defaulting on the payments on the 47" plasmaLCDHDTV sky package?

[ethariel]

I work for a government department, if you think this administrations changes/promises/announcements have hurt you, i'm waiting to see if they send round a tub of lube to go with whats heading my way!

Originally Posted by Biker Biggles

Stupid anomally example-----Elderly sisters live together for donkeys years and one dies leaving the other with a tax liability.

I work hard so I have enough for me and my dependants to live on,not so I can die with loads of money to hand out to others.I actually think there is something wrong with a culture that relies on inheriting money made by someone else for its standard of living.Perhaps thats why our economy is in such carp----not enough emphasis on creating wealth,and too much on trying to inherit it for nought.

How generous, you'll be leaving your house to charity then?

You seem to have a completely different attitude to Inheritance tax in the first place to me. I think it's right that if parents choose to leave a house to their offspring then that shouldn't be taxed, as they've bought it with a wage that's already been taxed. What makes you so sure there aren't many people who stand to lose a lot who don't necessarily have a high standard of living? Especially in London where property prices are high and people don't necessarily earn more than they do anywhere else.

[Biker Biggles]

Dont get me wrong.Im like anyone else and would be the first to grab a gift horse if offered.Im just saying that I dont think taxing windfalls is inherently bad,given that the tax money has to come from somewhere.We are all going to be paying/losing lots of money over the next few years,so best it comes from those who can afford it or who didnt work for it

[yorkie_chris]

Inheritance tax IS coming from people who worked for it, despite them being dead.

Originally Posted by Biker Biggles

Im just saying that I dont think taxing windfalls is inherently bad....

This is where you and I differ. I don't think of inheritances as windfalls. Windfalls implies either something unplanned or lucky. In most cases they are neither.

Tax lottery winnings instead. These are unplanned and lucky.

I can't see me ever having this problem, unless house prices double every year for a few years, but tend to agree with jabba and YC.

[Biker Biggles]

Originally Posted by Jabba

This is where you and I differ. I don't think of inheritances as windfalls. Windfalls implies either something unplanned or lucky. In most cases they are neither.

Tax lottery winnings instead. These are unplanned and lucky.

Perhaps we should call it unearned income(at least unearned by those who have to pay the tax)then,and yes why not tax lottery winnings.

To look at it from another angle-----They have raise half a trillion squid from somewhere,so where should it come from?Maybe ten pence on income tax or 10% more on VAT?We have already ruled out (and I agree)that the "jobs tax" was a daft idea.

Originally Posted by Biker Biggles

Perhaps we should call it unearned income(at least unearned by those who have to pay the tax)then,and yes why not tax lottery winnings.

Doesn't matter how you dress it up, IHT discriminates against those who chose to save. They pay at 40%. Those who chose to spend are also taxed, but VAT is only 17.5%. That seems inequitable to me.

You also don't seem to consider that a large part of many estates is the family home which was often bought for a modest cost but which has appreciated in value many times over and many more times than income since it was bought. Homes are bought to live in, not as an investment and it is scandalous that they often have to be sold to pay death taxes.

A lage estate doesn't necessarily mean lots of cash. Often it's the reverse - people chose to invest in their home to make it nice to live in and keep in good repair. This just happens to make it worth more too.

I can't think why Lottery winnings shouldn't be taxed. Trouble is that other prizes aren't taxed. Difficult to tax prizes that aren't given as cash.

Originally Posted by Biker Biggles

To look at it from another angle-----They have raise half a trillion squid from somewhere,so where should it come from? Maybe ten pence on income tax or 10% more on VAT?We have already ruled out (and I agree)that the "jobs tax" was a daft idea.

Tax the profits of the banks bailed out by the govt. A large part of the half a trillion squids is accounted for by this.

Why should careful, dilient and prudent Joe Public donate part of his estate upon death to bail out that bunch of bankers, many of whom are yet again enjoying huge bonuses and a fat-cat lifestyle in total contrast to those who chose to save either for a rainy day or to give their offspring a helping hand upon their demise?

They could also spend less. The wars in Iraq and Afghanistan cost £bns each year. The new Govt has inherited (see what I did there ) a huge "state". Reducing the size of Govt would help. More people working and paying income tax would help, so making business easier and less costly would help.