Monday, May 17, 2010

UK's Conservatives Acting Like Labour, Want 50% Capital Gains Tax

or like Dems under Obama.

If the UK voters thought it couldn't be worse than Gordon Brown, well they may be in for a surprise. (Just like many US voters thought it couldn't be worse than George Bush.)

Higher taxes for a million as George Osborne's emergency Budget hits investors (5/17/2010 Telegraph UK)

"More than a million people could be dragged into paying capital gains tax after George Osborne confirmed that he would use his emergency Budget to hit investors.

"The Chancellor is to increase duty on capital gains even though the plan was not included in the Conservatives’ election manifesto.

"CGT on “non-business assets”, including second homes, buy-to-let properties and shares, could rise from the current 18 per cent flat rate to a top rate of 40 or even 50 per cent, to fall in line with the higher rates of income tax.

"The move could double tax bills for hundreds of thousands of investors and has been denounced as “legalised theft”. There has been speculation that the changes may be backdated to stop a “fire sale” of second homes and other assets.

"The Liberal Democrats also want the tax to kick in below the current starting level of a £10,100 profit on any investment income. A threshold of £2,000 has been suggested. Deloitte, the accountancy firm, has estimated that that would mean the number of investors forced to pay CGT each year quadrupling to about a million." [The article continues.]

The sneaky Nick Clegg (who was talking to both Labour and Conservatives) and his party want the tax increase so that the income tax is reduced for lower income families. (Sound familiar?)

Say goodbye to any hope of economic recovery.

In the US, in Japan, and in the UK, people thought they voted for change and each got a new administration. It was a change alright, just not necessarily in the direction they hoped.


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