The fall of the Tory party

👍

Increase wages, attract more people, demand>supply, rent/house prices increase.
Rinse and repeat.

The eternal rentier problem..

Re the multiplier.. My non expert opinion is that it is a conflation of the mysteries of money and how it transmits through the world we live in

Then bust as the natural cycle of the mercantile economy repeats itself..

disallow BTL mortgages for existing properties

I like this idea.

The problem with this kind of demand>supply thinking is that, in aggregate, we have more buildings per capita and bedrooms per capita than we’ve ever had. Notwithstanding local mismatches in cities, it’s ultimately an issue of distribution. Managing borrowing and taxation is the only way around that.

Yep, pretty much. A conflation of financial capital and actual capital/real stuff. Money is just the technology we use to determine distribution (edit: and creation) of real wealth.

Not that the tories know that…

I'm not sure anyone really understands what money is. The recent lockdown illustrates what happens when circulation stops. RN exposed here as he fundamentally misunderstood the consequences of stopping the circulation of cash (not necessarily money) in the economy. I'm sceptical about NPIs re COVID but this is a more academic point about money.

Re response to @villa-ru

I think you're wrong in this sort of definite thinking. Statist fiscal policy generally exacerbates capital allocation problems.

God I sound like a pompous ass. Apologies @slippers

Nah, it’s all good. I probably sound the same…

And I’m not sure mildly limiting the freedoms of landlords in areas they’re not useful is particularly statist, but it takes all sorts :)

As a parent this admittedly triggers me, and an emotional argument doesn’t always make for a logical one.

To my mind it creates conflict between the value of a person and their finances.

If I/ we were to die tomorrow my 3 and 6 yo would loose us as security, it seems unreasonable that they should be disadvantaged by both lacking a/ both parent(s) and financial security/ support?

There seem to be so many fundamental flaws that the level of change needed would be impossible to implement?

CSB TLDR maybe I’m turning in to a Tory

Some sort of deferral rule until the youngest is 21yo would probably sort that.

Also you should probably have some sort of life insurance to cover this. Which then begs the question of how you legislate against the very wealthy using adapted life insurance wrappers to transfer wealth.

impossible to implement?

Well in this hypothetical you already have a working UBI.

I get there are issues with the laffer curve, but I think the principle probably applies to tax avoidance. anecdotally I know that mainstream CT avoidance products became almost impossible to sell when the rate dropped. The cost of setting up the schemes + a margin for the operators meant the savings weren't worth the potential hassle. So I think there has to be an element of reality in what you hoose to implement and when.

You’d have to get stricter with so many other elements of taxation I don’t see how it could be viable, better should never be the enemy of perfect and we seem to be heading in a direction that might need radical reform.

There would be loads of unintended consequences on the labour market, which could be both positive and negative admittedly.

I'm finding it hard to imagine the inherit nothing scenario too (closet Tory). Lots of stuff has little to no financial value but I'm very sentimental. I'm also something of a materialist and value things that last - furniture etc. Actually that second one can be sorted by making the would-be-inheritor pay the state for keeping granny's kitchen table etc. I'd still want first dibs on it. I guess the problem is that loads of that stuff which should be valued isn't and ends up in skips. If you had to pay for it, there'd be even more wastage.

family farm

Farms are exempt from IHT completely, iirc.

Farms are exempt from IHT completely, iirc.

This particular farm hasn't been farmed for 50 years or more. Its main income is from caravan storage for a factory, also on the "farm". It's basically all light industrial units and the few fields that are left are used as storage.

Just stick a nice everything under £500kish bracket is free on inheritance, everything over is taxed to fuck, you get to keep granny's tables, I might not be quite so financially fucked when my dad kicks the bucket, but rich cunts pay for society rather than their probably awful offspring.

Granny’s current threshold is £325k for tables. £500k if there’s a main residence involved.

And those thresholds are transferred to the spouse, so it’s effectively a max of £1m untaxed for a set of parents.

It’s a weirdly high threshold…

https://www.theguardian.com/world/2022/nov/04/infosys-still-operating-russia-rishi-sunak-akshata-murty should be interesting...

100% percent it over that though, and get rid of all the pre death transfer loopholes and we're all good.

The £500k (strictly £175k house, £325k anything) house thing is newish, 2017 I think. £325k sounds ok, £500k a bit high, then you double it for a couple and it’s nuts.

Yeh not sure how they justify someone living in No.10 earning income from operations in Russia, imagine we will hear Sunak claiming his family shouldn't be dragged in to it and its cheap political potshots

double it for a couple

Is that really what happens? but once one half of the couple dies, you're left with one person, so shouldn't it just be the same limits for inheriting from that one person? It doesn't matter that they were once married. (I'm not disupting, just seems weird. Adding together works if they both die at the same time. I supposed there could be a certain time buffer like if they died in the same month or something... could get complicated.)