Mansion Tax at £1.5m - what will this mean?

[MaureenOHara]

Does anyone have any idea what this might mean for an individual and what it might do to the market. What happened to the £2m market and will that be replicated or is it different?

Obviously that can’t happen if you do what I suggested and use some of the tax cuts resulting from the means-testing to lower employment taxes and mandate that this is paid into individual pension savings, with a similar scheme of mandatory pension saving for the self-employed.

Do you realise that if we gave each child £10k at birth and put this into a DC pension scheme, with an average 7% growth rate post-inflation (the average growth rate in stock markets over the last 70 years) each of those children would have a pension fund of £1m (in real terms) by the age of 68 without ever adding a penny to it themselves?

I'm not sure there is much traction in trying to make out that people living in £2million pound houses are so poor that we should be exra kind to them.

Yes but voting for more and more taxes isn’t working either.

When have building more houses ever meant house prices decrease? our population is growing faster than we can build. We can’t even build fast enough to build houses to cover the builders who come over to build the houses! You would need to build over the entire green belt in the millions of houses to create an over supply for that to ever happen.

Fair

Well yes - I’ve done that for my kids because I don’t expect there to be a state pension for them and the way the world of work is going for young people it all looks pretty dire

ultimately no government is going to do anything that looks even a teeny bit radical so we are a bit stuck until we need an IMF intervention

But stopping ILGs is a no brainer

Voting for better services and lower taxes was always an unrealistic fantasy.

With an aging population where the oldest own most of the wealth, and need most of the care, somebody has to pay for it.

Should the people without wealth pay more tax to support the prosperous?

I haven’t worked out why this has not been explored as a real policy. Seems a no brainer honestly.

The post seemed perfectly clear. And, incidentally, was correct.

Sorry, I am totally wrong. It wasn't in the Labour manifesto. I think maybe it was in the Lib Dem's.

Should the working taxpayer continually pay more tax to pay for the unproductive.

Who can we tax more to pay benefits to others?

For the same reason successive governments decided to spend when the sun was out rather than fix the roof

EU introduced a temporary tax on banks to build a fund that will be used if we have another financial crisis. What does the UK do? Annual tax on banks that just goes into general expenditure but ‘if something happens we’ll find the money elsewhere’. And that’s on top of the extra 3% CT banks pay so the levy could have been ring fenced while also bringing in extra tax from banks

At the end of the day it sounds a bit like a "revenge" tax, same with the VAT on private education. Generally speaking to many homeowners it will only affect "those down there in London etc.", so realistically most unaffected people won't care. And they are the majority.

The arguments about the economic viability, and other suggestions will not have any traction with those who will never (for now anyway), be in the loop for payment of this tax.

That's the reality isn't it?

It really is. It hasn’t been done for the same reasons none of the other things I suggested have been done: the outlay is now, and the benefit would not be seen until many decades hence, so our self-interested politicians have no interest in it even though it would solve one of the issues crippling the UK economy. This is why none of the long-term investment happens, why we have no nuclear power stations, why our infrastructure has been run into the ground, why no action has been taken on energy, food or water security, why our state pensions, most public sector pensions etc are ponzi schemes… the UK politicians always makes decisions that will have huge negative long-term impacts for short term electoral advantage. They put the interests of their silly little parties above the long-term prosperity and security of the UK’s citizens.

Until people get very angry about this and demand a change in our political system that prevents such disgraceful behaviour nothing will change.

🙋‍♀️We could start with you? I'll chip in too.

Is that line what you want though?

No. I was joking.

Absolutely. People who live in London/SE choose to pay vastly more for housing, because they're all really rich and laughing at all the poor northerners. Everyone who can should move up north so they too can watch their house prices sky rocket without wages following suit. Ah, the great fun of discovering that in the time it takes to sort the mortgage, prices rise so much you can no longer afford to buy anything. It's thrilling, like a really exciting roller-coaster ride, and it's only fair that northerners too get to experience it. Beastly southerners have also been depriving our poorer compatriots of knowing the underlying dread one feels all day, every day as they worry if they'll ever own a property, and if not, whatever will become of them - it makes one feel alive, and everybody should have the chance to feel it for themselves. Best of all of course is the excitement of discovering that you actually live in a mansion and are furiously wealthy, when you were under the impression you live in a perfectly normal semi mortgaged up to the eyeballs and are having to count every penny to manage your enormous debt. It's like winning the lottery!

Like you, I really can't wait for the whole country to know exactly what it's like. Especially people in Makerfield.

Oh phew hard to tell on these threads.

And how terrible its patient outcomes are!

I think the attitude to this is changing, too. It’s interesting how many young people are now accessing private GPs and private healthcare because the NHS is another service which has been largely coopted into being mainly a service for the elderly, so the young adults from the data I’ve seen do not have this quasi-religious devotion to a system that’s hugely expensive, inefficient and leads to a disproportionate amount of medical negligence compared to other countries and far worse outcomes for patients. It is utterly failing in comparison to the healthcare systems of almost every other developed country.

I am assuming you live up North?

I’m guessing this is “Andy”’s speak for his next TikTok extravaganza, probably with some little props of evil southerner lego people sitting on piles of lego jewels and gold in “mansions” in the style of the lego Hogwarts Castle, and comparing them to poor, sad looking lego figures of the deserving northerners living in caves.

Frankly, his politics is just as divisive as that of Reform, and as economically illiterate.

@LifeOnEnceladus

yes I have noted an increase in ads for private GPs/insurance