But rate rises target only a slightly better off demographic.
Rate rise hit rent and FTBs most.
And vat can be tailored to not be added to food/energy. I but be piled onto new cars, home improvements etc etc
Mortgage Rate Rises
- Thread starter glenimp617
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But rate rises target only a slightly better off demographic.
Rate rise hit rent and FTBs most.
And vat can be tailored to not be added to food/energy. I but be piled onto new cars, home improvements etc etc
But you have to. Long term inflation is very very bad. If it runs away you'll never escape the pain.
Current Vat rates don't impact the wealthy as much as those that are poorer.
What really hurts the wealthy is capital gains.
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Well yes. VAT in of itself doesn't cause inflation per sae, but you can't simply look at it without considering that it would increase CPI and have a wider impact on the cost of living.
It would cause a pivotal inward shift in the supply curve and ultimately only push the burden further onto the poorest of society.
You could maybe look at modifying the scope of VAT to have a greater effect on certain goods, but that's a different question.
In general, as much as I hate to admit it, i'm with @Mrwong on this.
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House prices will not drop more than 10%, I see stories of 35% which will not happen. There is still lots of money coming in from overseas investors into property and companies taking over the rental market. Even some construction companies are starting to rent out properties rather than sell them at a lower price, waiting for the rates on mortgages to drop.
Now the average homebuyer needs to compete against them.
Now the average homebuyer needs to compete against them.
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So if we increased VAT (and sorted the vat exemptions) and used that money to pay off the bonds sold to banks that would do what we need?
Stops people buying stuff as it’s more expensive - and if they do - contributes to the reduction of cash in circulation? Also reduces the profit being made by the cash rich from interest gains?
Or instead of paying down the bonds - use the funding to build our energy independence
Stops people buying stuff as it’s more expensive - and if they do - contributes to the reduction of cash in circulation? Also reduces the profit being made by the cash rich from interest gains?
Or instead of paying down the bonds - use the funding to build our energy independence
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Man of Honour
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I mean you’ve always got to be careful unless they end up in a care home and you lose a chunk, but some is in trust and it’s hard to imagine losing more inheritance than the value of our remaining mortgage.
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I do think the idea of raising VAT on goods and services has merit. But perhaps increases depending on the item cost.
Anything individual items under £5 stay as they are then perhaps something like
2.5% extra on £5-50
5% extra on £51-500
7.5% extra on £501-£5,000
10% extra on £5,001+
I cannot imagine it will be too onerous to get this implemented on websites or checkouts.
I suggest that some exemptions would be necessary, but the BOE using this one lever to beat everybody including those who cannot afford to indulge in luxury spending seems wrong.
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IHT is the biggest killer in the long run, They should have regional IHT, if not those in the south will pay more in IHT, if prices rises then will end up losing more.
Some people sell their home in the south buy a house up north within the IHT and if they can buy a smaller place in the south, this would allow them to keep a home and sell off the home in the south to cover IHT, not an ideal solution, but it would mean their children would have a place to live.
Someone that I knew did this, the 2nd property end up with a retirement interest-only mortgage, they lived in the property and rented the property up north to cover the payments, which was then past on.
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It would be an absolute massive pain for virtually every company managing a finance system and submitting VAT returns!
Yea, I looked at that and nearly had a heart attack!
If they were truly easy to implement, then I wouldn't be completely against the idea of at least considering some more precision-type tweaks of some sort.
However, you have to remember that the overall increase we're seeing in consumer prices is pushing up nominal VAT receipts dramatically anyway.
In general I would be massively wary of any wide ranging fiscal policy changes during this period at all; it's why i don't support any kind of government support in this instance.
The politics of this stuff means that they have a habit of becoming permanent, and often lead to some very unintended consequences.
As painful as this is going to be for many of us, this thing needs to be allowed to run it's course in my opinion.
What we need is good, effective, long-term focussed policy coming out of it the other side in 2-3 years.
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Absolutely ****** not.
We should be all working less with the insane amount of technology we have to increase productivity. All the productivity benefits of technology have been used to increase corporate profits and make wealthy people even more wealthy.
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Do you think it is fair that those in the south pay more in IHT than the north? Even if they earn more, they pay more in income taxes.
I think IHT is fair. I don't think it should be adjusted to benefit the rich more.
Inheritance is a massive factor in long term wealth inequality
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More of a pain than being unable to pay for food and utilities?
If they can manage for the income tax tiers they can manage for this.
What? This is like arguing 'the rich' should have a different rate of tax to that of workers!
Oh wait, they do. Carry on...