Discussion
I have seen a few references made now to the idea of a capital levy in a bid to claw back some of the billions the CV19 lockdown has cost governments. I had watched an interview where the idea was being discussed within the UK. I also now seen in Spanish press that a number of wealthy Spaniards have flocked to Luxumberg banks opening accounts to move their money, again for fear that a capital levy might come to exist.
Thoughts on viability? Thoughts on whether its a realistic proposition? Quite an intriguing, if scary, prospect but might be yet another time that those who spend what they earn escape any real consequences of failing to provide themselves with any savings buffer.
Thoughts on viability? Thoughts on whether its a realistic proposition? Quite an intriguing, if scary, prospect but might be yet another time that those who spend what they earn escape any real consequences of failing to provide themselves with any savings buffer.
Shnozz said:
I have seen a few references made now to the idea of a capital levy in a bid to claw back some of the billions the CV19 lockdown has cost governments. I had watched an interview where the idea was being discussed within the UK. I also now seen in Spanish press that a number of wealthy Spaniards have flocked to Luxumberg banks opening accounts to move their money, again for fear that a capital levy might come to exist.
Thoughts on viability? Thoughts on whether its a realistic proposition? Quite an intriguing, if scary, prospect but might be yet another time that those who spend what they earn escape any real consequences of failing to provide themselves with any savings buffer.
A capital levy would be a tax on prudent people. My brother and I have earned similar money all our lives, but him doing a bit better then me.Thoughts on viability? Thoughts on whether its a realistic proposition? Quite an intriguing, if scary, prospect but might be yet another time that those who spend what they earn escape any real consequences of failing to provide themselves with any savings buffer.
He spends everything he earns and more. He has two cars on finance, maxed out credit cards and a large mortgage. I save and invest. I have a healthy pension pot, decent ISA's, no mortgage etc.
My brother's company folded during the crisis. I have been told I'm not needed after June. My brother will be seeking benefits, I will be supporting myself.
A capital levy would punish me for being the sensible one.
It would and it’s wrong. But people who are prudent are in the minority. Government will pander to the masses. I’m not sure who’s to blame for it people or the government?. It depresses me just thinking about it, the can was kicked in 2008 corona is another excuse to kick it again. If a fallout ever comes it will be massive.
Naturally I am completely against it due to being one of those people who do not live on credit.
Globally it has happened twice since World war 2, Italy in 1992 and Cyprus in 2013.
There is almost no chance of it happening in the UK. Thankfully our MPs and Lords spend so much time lining their pockets that it would affect them more than the average man on the street.
Globally it has happened twice since World war 2, Italy in 1992 and Cyprus in 2013.
There is almost no chance of it happening in the UK. Thankfully our MPs and Lords spend so much time lining their pockets that it would affect them more than the average man on the street.
The UK is very unusual for having almost no wealth taxes or quasi wealth taxes. Property for example is very lightly taxed (ask anyone in the US with a relatively expensive house - say £500k +, what they pay in property taxes compares to council tax in the UK). Even places we may think of as low tax like Switzerland have wealth taxes albeit at fairly modest levels. Most counties only have these taxes kick in above a threshold - say £1m and exempt things like one’s principle residence and pension.
The problem in the UK is that won’t raise any meaningful sum and it is hugely complex to administer. I don’t think we will see wealth taxes but I do think we will see:
(1) a large increase in capital gains tax, aligning it with general taxation (so max rate 45%); and
(2) some sort of “NHS surcharge” on the basic rate - maybe 2% for five years. Of course it won’t last five years.
As long as they make the latter on tax not NI so it captures all income I would t object to the second. I would hate the first.
The problem in the UK is that won’t raise any meaningful sum and it is hugely complex to administer. I don’t think we will see wealth taxes but I do think we will see:
(1) a large increase in capital gains tax, aligning it with general taxation (so max rate 45%); and
(2) some sort of “NHS surcharge” on the basic rate - maybe 2% for five years. Of course it won’t last five years.
As long as they make the latter on tax not NI so it captures all income I would t object to the second. I would hate the first.
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