In todays news...

[irie]

Yet again the Green party think taxing rich people is the answer to everything. Maybe if they put more effort into other ideas they would get more support.

Tax wealthiest 1% to fund home insulation, say Greens

https://www.bbc.co.uk/news/uk-politics-63087563

The trouble with taxing the richest 1% is that there aren't enough of them.

Sounds like another quality Green policy like Natalie Bennett's which was (iirc) eviscerated on LBC.

[Cousin Jack]

'Taxing the rich' is the war cry of the stupid.

The problems are:

There arent enough of them.
They are pretty difficult to tax. They have people to find loopholes, or they can just fcuk off elsewhere.

[slowsider]

'Taxing the rich' is the war cry of the stupid.

The problems are:

There arent enough of them.
They are pretty difficult to tax. They have people to find loopholes, or they can just fcuk off elsewhere.

And yet...
"Income tax payments are concentrated amongst those with the largest incomes. The 10% of income taxpayers with the largest incomes contribute over 60% of income tax receipts. "

According to the HoC library.

[slowsider]

Yet again the Green party think taxing rich people is the answer to everything. Maybe if they put more effort into other ideas they would get more support.

https://www.bbc.co.uk/news/uk-politics-63087563

The trouble with taxing the richest 1% is that there aren't enough of them.

Sounds like another quality Green policy like Natalie Bennett's which was (iirc) eviscerated on LBC.

Taxing the poor is hardly a great alternative.

[Cousin Jack]

The top decile is easy to tax. Mostly well paid jobs.

The top centile is less easy. Lots of money from companies, investments, overseas sources. And lots more opportunities to turn income into capital gains, and perform all sorts of other legal tricks. Or just to fcuk off to a low tax country and run it all from there.

[Mr. Dazzle]

Which culture was it (might well have been fictional ) that used ever larger pieces or rock for money? Thus rich people had to handle massive boulders, meaning it was physically inconvenient to be rich.

Maybe we should do that.

[slowsider]

Which culture was it (might well have been fictional ) that used ever larger pieces or rock for money? Thus rich people had to handle massive boulders, meaning it was physically inconvenient to be rich.

Maybe we should do that.

Rai stones?

[Greenman]

The top decile is easy to tax. Mostly well paid jobs.

The top centile is less easy. Lots of money from companies, investments, overseas sources. And lots more opportunities to turn income into capital gains, and perform all sorts of other legal tricks. Or just to fcuk off to a low tax country and run it all from there.

What will we lose if those companies decide to do that? if they are not paying any tax anyway are we not going to be better off without them, we can fill their ex-premesis with a company willing to pay their taxes here in the UK!

These ties between all the people making these corrupt channels profitable need to be held accountable and a leader put in place that is independent from any of these privately schooled morons and someone who wants to lead with passion and not just for the pursuit of greed!

They all know what they need to do but they don't want to upset each other as you say.

It's a total shitshow!

[Greenman]

'Taxing the rich' is the war cry of the stupid.

The problems are:

There arent enough of them.
They are pretty difficult to tax. They have people to find loopholes, or they can just fcuk off elsewhere.

Close the loopholes!

[irie]

The government's latest non-budget looks pretty meagre when compared to this:

https://www.theguardian.com/world/2022/ ... iscal-path

Germany unveils €200bn help for consumers and says it won’t follow UK’s route

Finance minister announces €200bn fund to protect citizens from rising gas prices driven by Russia’s war in Ukraine

Germany won't follow the UK's route? Oh.

While it is still financed by the state taking on new debt, the fund can only be used for paying for specific measures and thus does not count as part of the regular household budget – ie. the annual budget for the federal government.

And where will the money end up? Filtering through into the general economy of course.

[Cousin Jack]

'Taxing the rich' is the war cry of the stupid.

The problems are:

There arent enough of them.
They are pretty difficult to tax. They have people to find loopholes, or they can just fcuk off elsewhere.

Close the loopholes!

Governments have been doing that for years. Our tax system is far too complex, close one loophole and snother opens.

What we actually NEED is a brand new system, designed by experts to be simple and watertight. Who has the expertise to design that? Tax accountants and HMRC. Who would be out of a job with a new simple system? Tax accountants and HMRC.

[irie]

Seems that the BoE was planning in the near future to start QT (Quantitive Tightening) designed to suck money out of the UK economy, and incidentally push the UK further into recession in synch with other Western European economies. But was upstaged by the government's non-budget which was designed to pump cash into people's hands to increase purchasing power and try to avoid or mitigate a future recession.

No wonder that the BoE had a hissy fit.

[Count Steer]

Seems that the BoE was planning in the near future to start QT (Quantitive Tightening) designed to suck money out of the UK economy, and incidentally push the UK further into recession in synch with other Western European economies. But was upstaged by the government's non-budget which was designed to pump cash into people's hands to increase purchasing power and try to avoid or mitigate a future recession.

No wonder that the BoE had a hissy fit.

It still plans to reduce its balance sheet by £80bn over the next year by selling long-dated/30yr government bonds - just, logically, delayed the start of the selling. No point selling on weakness when they can buy cheap.

[irie]

Seems that the BoE was planning in the near future to start QT (Quantitive Tightening) designed to suck money out of the UK economy, and incidentally push the UK further into recession in synch with other Western European economies. But was upstaged by the government's non-budget which was designed to pump cash into people's hands to increase purchasing power and try to avoid or mitigate a future recession.

No wonder that the BoE had a hissy fit.

It still plans to reduce its balance sheet by £80bn over the next year by selling long-dated/30yr government bonds - just, logically, delayed the start of the selling. No point selling on weakness when they can buy cheap.

Bethany Payne, bond portfolio manager at Janus Henderson Investors, said: “The Bank of England are generously offering to buy long-dated gilts starting today. That’s a complete flip on their announcement on Thursday last week where they confirmed sales of gilts would go ahead, starting Monday October 3.”

[Count Steer]

Seems that the BoE was planning in the near future to start QT (Quantitive Tightening) designed to suck money out of the UK economy, and incidentally push the UK further into recession in synch with other Western European economies. But was upstaged by the government's non-budget which was designed to pump cash into people's hands to increase purchasing power and try to avoid or mitigate a future recession.

No wonder that the BoE had a hissy fit.

It still plans to reduce its balance sheet by £80bn over the next year by selling long-dated/30yr government bonds - just, logically, delayed the start of the selling. No point selling on weakness when they can buy cheap.

Bethany Payne, bond portfolio manager at Janus Henderson Investors, said: “The Bank of England are generously offering to buy long-dated gilts starting today. That’s a complete flip on their announcement on Thursday last week where they confirmed sales of gilts would go ahead, starting Monday October 3.”

They're still going to sell them over a 12 month period. Just not starting Oct 3. When they announced what they were going to do back in August they didn't anticipate the coming popularity for voodoo economics and having to rescue pension funds*. It wasn't a secret plot by the BoE, they do routinely buy and sell gilts. (It's a bit odd that they have to announce sales, because just announcing it moves markets - but they do say that it's not the Fed actually doing QA that settles markets, it's the confidence it gives just showing they're prepared to act. Funny old business).

* Even after that companies are having to bail out their pension funds. Serco have pumped in £60M+ from their emergency funds.

[Mussels]

The bank of England got it wrong, maybe they will stop making embarrassing predictions now.
BBC News - UK not in recession, new figures suggest
https://www.bbc.co.uk/news/business-63086562

[irie]

They're still going to sell them over a 12 month period. Just not starting Oct 3. When they announced what they were going to do back in August they didn't anticipate the coming popularity for voodoo economics and having to rescue pension funds*. It wasn't a secret plot by the BoE, they do routinely buy and sell gilts. (It's a bit odd that they have to announce sales, because just announcing it moves markets - but they do say that it's not the Fed actually doing QA that settles markets, it's the confidence it gives just showing they're prepared to act. Funny old business).

* Even after that companies are having to bail out their pension funds. Serco have pumped in £60M+ from their emergency funds.

Effectively doing the opposite of what the government are trying to do.

Whether what the government is trying to do is voodoo economics is of course dependant on your viewpoint, as is also the BoE policy of deflating the economy in the face of a forecast recession.

The twin evils of inflation and recession, pick your poison.

[Count Steer]

Reaganomics (/reɪɡəˈnɒmɪks/; a portmanteau of Reagan and economics attributed to Paul Harvey),[1] or Reaganism, refers to the neoliberal[2][3][4] economic policies promoted by U.S. President Ronald Reagan during the 1980s. These policies are commonly associated with and characterized as supply-side economics, trickle-down economics, or "voodoo economics" by opponents,

[slowsider]

Finally.

I remember being mocked on here for daring to point out that the bank were making bad decisions and wrong forecasts, and it seems to be slowly dawning on a few people that this mess is monetary policy managed by banks and their associates, although most people will still think that LT and KK are responsible for the economic crisis and that they can vote to change things.

That's why I said KK is too clever for his own good, he thinks that everyone understands what he understands, but 99% haven't got a clue, and they've called it voodoo economics, when he's the bloke trying to slow it all down and stop the BS - brilliant racist connotations though, Kwasi doing voodoo, the majority white banking institutions and voters are going to lap that one up.

The market is lit up because there is an outside chance that he actually might topple the house of cards and they're bricking it.
If monetary policy wasn't so unstable then it would hardly have made a ripple, but it's not, it's a time bomb with a tilt switch and he's shaking it - that's why the bank shat itself, pulled billions out of it's arse pocket and threw it on the table quickly - do you think they did that to help the man in the street

Just explain the reasoning behind cutting the top rate of tax for me.

[slowsider]

Just explain the reasoning behind cutting the top rate of tax for me.

I don't think you need to look for anything sinister, it's like removing bonus caps, it's as straightforward as it looks.
It's one of those things that I'm 'meh' about, maybe it will keep a few mega rich from leaving or taking their money offshore, maybe it won't.

Are they just tone deaf though? The optics around that alone are incendiary. The mega rich werent threatening to leave anyway, and the bonus caps were being worked around.