Monday, 24 January 2011

Are we really 'all in this together'?

Government announces tax free saving and inheritance plan for the ultra rich

The Government, with the use of a clever mix of smoke and mirrors and spin, is telling us it wants to sell off 15% of our national forest-land to private owners ... and says it is needs to do so to cut the deficit, but the real reason could not be further from the truth ... !

In reality this move is being done so the super-rich can profit from it, and at the same time have their tax bill reduced ... by expanding a unique tax free investment/savings loop-hole only available to them ... as investments in land are free from capital gains tax ... and are uniquely free from any inheritance tax too (which is why many ultra-rich landowners, bankers and football players have been quietly 'cashing in' and buy more land).

This carefully crafted move exposes the 'double standards' that currently exist and the real hypocrisy lying behind the 'We are all in this together' spin, as this move comes at the same time as ordinary hard-working people are being disproportionately forced to pay higher levels of tax as a result of the recent VAT hike!  

As I have said on this blog before, one of the most fair/just taxes we should be introducing as a country is a Land Value Tax, in order to replace unfair property taxes, to reduce VAT, to reduce tuition fees and to reduce the tax on jobs. The loophole on inheritance tax should also be closed too (so why have the Government, and indeed the last Government, failed to do such things ... well it's obvious really isn't it - i.e. just follow the money ... and look out for all the self-interest and greed).

Vince Cable (Business Secretary) understands the importance of introducing a Land Value Tax, as he held a summit on the subject in the House of Commons recently, so it's a disgrace that this Government, which he and the Liberal Democrats are a part of, are now actively pushing such immoral/unjust changes through ... especially after the immoral tripling of tuition fees and the scrapping of the EMA. Vince Cable must not care or he has become quickly corrupted - see my Homer Simpson post earlier. (NB Today his department also come under fire from the CBI, saying it needed to be 'less of a talking shop' and 'more of an action-oriented growth champion').

It's clear the Liberal Democrats are providing a convenient smoke-screen for the Conservatives, who are taking every opportunity to quietly reward their ultra-rich families/backers (e.g. landowners, bankers) ... and the quicker this smoke screen is removed the better!

It is worth noting that any potential benefit gained from selling off land is going to be short-lived, as any one-off revenue claimed will be quickly offset by large reductions in capital gains tax and inheritance tax bills for the ultra-rich (for generations to come). 

This proposal highlights how 'ignorance is not bliss', because it's young people, pensioners and hard-working taxpayers that are having to pay for these tax cuts to the super-rich, whilst also bailing out bankers (who are still paying themselves obscene bonuses)!