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Archive for the ‘Taxation’ Category

Christie Malry on CGT

In Taxation on May 28, 2010 at 19:58

Good post from FCAblog – run by an accountant, so you’d think it would be boring, but actually it’s quite good.

Here, Christie Malry (aka FCAblog-ger), outlines some of the pitfalls of a Capital Gains Tax increase:

Inflation makes capital gains unfair by generating increases in value that are the result solely of the ravages of inflation, not a genuine gain. The problem is easy to demonstrate. Imagine you’re a person aged 20 with £10,000. You decide you want to squirrel this away for your retirement. You buy shares worth £10,000 with the money and the central bank manages to keep inflation constant at 2%. 50 years later you cash in your investment (imagine for the purposes of this exercise that the individual has already used up their annual exempt amount on other disposals). Good news – the shares have kept up with inflation and are now worth £26,916! Bad news – the government deems that this gain of £16,916 is taxable and sends you a tax bill of £6,766. Even worse news – the £20,149 you’ve got left is worth only 75% of your original money. You’ve lost 25% of your original investment just because the government taxed your inflationary gains. Seeing that inflation is a direct result of government policy, this is very unfair.

Well worth reading the rest of the article for the rest of the story – and some possible solutions – which you can do over on Christie’s site.

King’s Fund economist calls Tory Cancer Drugs plan “sleight of hand”

In Cancer Drugs, David Cameron, Gordon Brown, key indicators, Taxation, the conservatives, the labour party, The NHS on April 5, 2010 at 15:06

From the Times of London

“It’s a sleight of hand to say the least because the money isn’t there to be saved yet, so the money will have to come out of existing budgets.”

His criticism was seized on by Labour because it goes to the heart of criticisms about Mr Osborne’s plans for national insurance contributions — that they are uncosted and would threaten frontline services.

But wait a minute.  Didn’t the Tories already say they would pay for it by dropping Labour’s planned NI increase?  Besides, most potential savings are academic, right now.  A very odd argument, indeed.

Anyway, haven’t we already seen that NICE isn’t so nice, after all? Wringing hands and twittling fingers is hardly what one would call getting the job done.

Some unusual childhood cancers respond well to medicines designed for other cancers, but patients are denied the drugs on the NHS because they have not been officially approved for their specific condition.

After all, if universal health care is only available to the healthiest in our society, what’s the point in having it anyway?  On Labour’s view, British citizens are effectively participating in nationally assisted suicide.

As the shadow health secretary says, no taxation without representation:

Our view is that paying tax should be the equivalent of having comprehensive health insurance. We should not have these arbitrary exclusions on cost grounds.

Voting Labour means more debt for the country, and a stack of dead bodies courtesy of NICE and the NHS, with Gordon Brown at the hearse wheel.