The fall of the Tory party

I feel like there's a lot of "government is considering..." stuff happening. Put an idea out there, make loads of positive or culture war headlines, then quietly shelve it once the media cycle has moved on.

This has been the MO for years - leak policy to media, see if it passes the public sniff test, say it wasn't the policy if it gets slated...

I can't see the current suggestion getting throught the commons and the Lords. Its madness. Self destructive madness.

You must be new here, one word - Brexit

AAAAh hang on, they're only talking about it being for six months to a year. So in other words, it really does look like it will end up being a poersnal allowance tweak in the end

I feel like there's a lot of "government is considering..." stuff happening. Put an idea out there, make loads of positive or culture war headlines, then quietly shelve it once the media cycle has moved on.

This has been the MO for years - leak policy to media, see if it passes the public sniff test, say it wasn't the policy if it gets slated...

Totally agree with this. Cynical politics

Does this mean I should take a break from working for a few months when I'm 49 so I can have a year tax free when I'm fifty?

Many will do so, you'd think.

The bit about not withdrawing disability allowances from working people seemed sensible, though. The highest marginal tax rates always crop up in the wrong place in the distribution when you means test benefits.

I suppose the other way they could implement the boomer tax giveaway would be to cap the number of years of NI contributions you have to pay, i.e. if you work 40 years you're done? People seem to like faux-hypothecation.

Does this mean I should take a break from working for a few months when I'm 49 so I can have a year tax free when I'm fifty?

Many will do so, you'd think.

Only those in jobs with enough security to be able to and paying a chunk of tax that's worth avoiding. Little to no benefit for low paid workers like most shite that crosses a Tory's mind, even if it's likely to come to nothing.

Fucking disgraceful policy. No money for ambulance drivers but we can afford to bung some cash to people who already have so much money that they don't need to work. Sorry if you die after lying on the floor for 17 hours waiting for an ambulance but it's for the best.

What's the point staying in the UK if you're under 50 at this point? You get fucking rinsed on housing, your wages are shit, you're taxed punitively compared to people with assets, you're never getting a state pension, you can't afford childcare and your rights are being eroded. Let's see how well the UK economy works when it consists entirely of pensioners and landlords, and all the people who actually work fuck off to Australia or Canada or the EU or the US

If anything it should be the under 30s that don’t pay tax. How mortgage interest repayments for primary residence isn’t tax deductible is beyond me as well.

How mortgage interest repayments aren’t tax deductible is beyond me as well.

Don't really understand why they should be. Would only make sense as an offset against the in-kind imputed rental income you receive from living in the dwelling.... but that's a net tax increase for mortgaged homeowners (before we even get to capital gains).

Owner occupied homes should have a tax rebate on interest repayments. Seems to work just fine in plenty of countries. e.g. £12,000 annual interest repayment is taken out of gross earnings and lowering your taxable income. If you’re living mortgage free than it incentives to upgrade your home or otherwise pay full taxes.

plenty of countries.

There's a wiki for this

https://en.wikipedia.org/wiki/Home_mortgage_interest_deduction

Turns out the UK allowed mortgage interest payments as a deduction from 1983 to 2000

before we even get to capital gains

The tax most in need of reform...

I know it's common in lots of places, but what's the justification. Should renters be able to deduct rent from their income tax bill? Car loan payments? It just seems like a random bung to one segment of society.

The one I have more sympathy with is something like deducting the cost of childcare if you go back to work. You're paying someone's salary, which they are then paying tax on. At the moment you need to earn £50k gross to get a childminder £15k net or some stupid arithmetic like that.

Yeah its a total farce, but some folk would have everything stripped and gave to the government.

MIRAS they called it. I got one year’s worth when I bought my first house in 1999 because my salary was under £25k. It was precisely £19k under £25k.

It was super sweet until the late 80s because you could earn £60k as a couple and still get it, which was basically everyone.

what's the justification. Should renters be able to deduct rent from their income tax bill? Car loan payments?

It encourages and accelerates homeownership so that people don’t need to rent. Take the Netherlands as an example, 65% homeownership rates and 30% social housing stock which is subsidised. Cars are pretty much taxed to death which they should be as they’re an unnecessary luxury.

Thanks. Somewhat surprised it was abolished rather than changed considering labour was in charge of it.

65% homeownership rates

So basically the same as the UK with no subsidy?

Most attempts to subsidise mortgages make existing property and landowners richer without broadening the number of people that are able to buy. Sometimes they backfire by making deposit requirements bigger. See Help to Buy etc in the UK.

Cars are pretty much taxed to death which they should be as they’re an unnecessary luxury.

I have a special appreciation for nations doing this although it requires a serious comitment to public transport.

Norway, Denmark, Sweden, Switzerland all spring to mind.

Norway

I thought they went the other way, i.e. mega subsidies for EVs which is why it's a huge market for Tesla? Or maybe it's just that EVs are exempted from big taxes on ICe vehicles.

It's the second one. Ridiculously high taxes (and fuel costs) for anything ICE.

ta

Maybe they only do it for ICE...no idea. I think ICE is only about 30% of cars on the road there now.

Also, Tesla were losing a lot of ground to VW and Polestar there as of last year.