WDB
Full Member
Posts: 7,425
|
Post by WDB on Aug 22, 2024 6:13:38 GMT
You OK, hun? VED policy debateThe original tax that became VED (introduced in 1921) was created to provide funding for road construction and maintenance. This is no longer the case, and VED revenue is not hypothecated for road maintenance. More recently, VED became more closely linked to vehicles’ environmental performance (to reflect wider negative externalities of car usage).commonslibrary.parliament.uk/research-briefings/sn01482/
|
|
Rob
Full Member
Posts: 2,778
|
Post by Rob on Aug 22, 2024 8:56:21 GMT
And yet cars will pay the same regardless of if they pollute nothing or a lot. Unless it's a classic and then they can pollute as much as they do and you pay nothing in VED. A messed up system.
|
|
|
Post by EspadaIII on Aug 22, 2024 9:22:16 GMT
Everything about tax in the UK is messed up. It goes back decades, made a lot worse by Gordon Brown but nothing rolled back by Osborne, 'spreadsheet Phil' or anyone else subsequently.
We could be so much better at this but politics gets in the way of proper policy. The wealthy pay a chunk of fees to accountants to avoid excessive tax. Imagine if the tax was seen as not so excessive; it would get paid instead and the accountants would lose out - oh dear what a shame - rather than the exchequer.
When my father died, he had lived overseas for five years. HMRC wanted a lot of money in IHT. I spent 6% of that sum on accountancy advice and paid no tax at all. If the IHT had been 10% instead of 40%, I would have simply paid the tax.
|
|
WDB
Full Member
Posts: 7,425
|
Post by WDB on Aug 22, 2024 9:29:54 GMT
Yes, and attaching misleading names to taxes really doesn’t help. National Insurance is a case in point. Because of how it began, people think it’s a magic ticket to special entitlements: “I’ve paid in all my life…”
Stranger still, before the election, I was chatting to a colleague — senior pro, 30 years in the business — who, it turned out, thought cutting NI was a bad idea because it was hypothecated to the NHS, which “deserves every penny.” In that context, misconceptions about the nature (or weight!) of EVs are hardly surprising.
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Aug 22, 2024 9:48:08 GMT
IHT should be 100% on everyone (especially the Royal Family and every other "generational wealth" baby who haven't earnt a penny through their own labour and efforts in their entire lives), and Income Tax should be graded down to as near zero as possible for as many people as possible (sums needed to be done to work out a proper policy there). Imagine not having to pay income tax whilst you get your life going after education, what a boost, rather than having to wait until your parents die, hope they leave something to you instead of Battersea Dogs' Home, and even when they do it's often far too late in your life to be properly useful. The gnashing of teeth and wailing over "unfair" legacies is an utter scourge on society, there's no spectacle worse than a family squabbling of who should have got what. Some sentimental objects and personal possessions of no monetary value such as photographs are excepted in my Communist Utopia, of course.
There you go, a opinion you will no doubt disagree with me on 110%. Inheritance is a privilege, not a right, and nobody should expect it.
|
|
|
Post by EspadaIII on Aug 22, 2024 10:16:18 GMT
I don't think 100% IHT would work as lots of people have assets at the end of their life which they have worked hard to acheive and want to pass on to their children. The reason communism failed is that there is no incentive to work hard.
Genuine question - if you believe this, why educate your children privately? I didn't and mine have excellent degrees in proper subjects (Surveying and Engineering) and good jobs.
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Aug 22, 2024 10:50:52 GMT
It wasn't my decision, I wanted to use state education. But in a tied vote, someone has to give way and I reluctantly demurred.
But I'm curious why it wouldn't align with my view - what I'm doing is spending my money during my lifetime, passing it to my children to hopefully give them the best start in life possible, because I know under the current tax system and housing situation in this country that it's really difficult for youngsters to get a foothold now. I wish it weren't so, but I have to play the game which is presented to me, not the one I would like to exist.
In an equitable country such as the one in envisage, private education would also be unavailable, of course.
Where we are now is politically trying to play both sides - the haves and the have nots. It's not working, it's never worked. We just go round and round in circles. Ground up reform is required. And top down reform, come to that.
A 100% IHT, as I said, would have to be set against reductions of taxes on earned income. Inheritance is unearned windfall, which is where the taxman should look before coming for taxes on earnings - that's a policy which would encourage work and enterprise, at the times in life when we need people to be working and enterprising the most, i.e. when they're young and have energy and ambition.
|
|
|
Post by EspadaIII on Aug 22, 2024 12:14:50 GMT
I can agree that the tax system is certainly in need of reform; it doesn't work and as you have mentioned, there should not be a need for private education nor should there be housing shortages. Solve that one (and solve the perceived immigration issue as a first step) and you have the makings of a sensible situation.
However, I am the first to admit that I was, in a very modest way, similar to the children of Bill Gates etc. My father worked very hard, built a business, got me educated and gave me an excellent start, both in terms of education and advice but also in terms of financial stability. However, I have also worked hard and built a business, and my children have seen that I have not lounged around, but gone out to work each day, paid my taxes and made them a nice life. If there was no income tax at all and certainly no CGT on business related assets, there might be a solution, but then you are waiting for people to die to pick off their assets under IHT, by which time they would have spent it all on their children.
There are so many loopholes that sometimes you have to accept that there are winners and losers and sometimes, even though the winners don't need the extra money, their wealth generates additional income for the country that the losers could not do, even if they were the winners. Think about some of the really wealthy people (even those with huge inheritances). They don't work but they use the services of so many companies, which employ huge numbers of people, all of whom pay tax. If those wealthy had to do a regular job, the overall tax take would be far less.
It's a balance and I don't think either of us have the perfect answer to it.
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Aug 22, 2024 12:21:33 GMT
Yes you're probably right. Thanks for taking it the right way.
It is a conundrum though, that we espouse the "work hard and you shall be rewarded" mantra, but are content for the generationally wealthy to avoid the fate of a lifetime's toil on the basis that they pay others to toil. And that is usually in low paid, hard working service rather than high skilled, high paid creative roles. They're not really driving innovation and bettering the lives of all, are they. They're paying people to serve them drinks on boats (yes, sore subject this week, RIP to those poor souls, nobody deserves such a chilling fate).
Of course, I do accept there is no perfect answer, but it does grind my gears that the more right-wing included people fail to notice that fundamental flaw in their arguments - the "work till you drop" argument doesn't apply to a certain subset of people and never shall.
|
|
|
Post by EspadaIII on Aug 22, 2024 12:35:37 GMT
Yes - the obvious flaw in the situation I describe is usually the low pay of the workers, working for the ultra (or not so ultra) wealthy. It is bad and I try to do my bit to alleviate that. When I am in a restaurant and get the bill which includes a service charge, I always ask if the charge goes to the staff; so many times it does not. So I get the charge removed entirely and give a decent cash tip to the waiter/ress. There is no justification for a service charge on top of the menu price. If you want more, raise your prices.
I really feel for Mike Lynch's family (if there are any remaining). Clearly a very intelligent man who should be continuing to celebrate the release from his ordeal.
|
|
|
Post by EspadaIII on Sept 2, 2024 13:23:43 GMT
Had a few spare hours yesterday so went back to a BMW dealer to have a closer look at the iX2. When I realised that the base model was £6,000 more expensive than the larger iX1 (identical under the skin) and the maximum charging speed was only 130kW I left; although in some disappointment as I felt more comfortable second time inside and the lack of the iDrive didn't worry me as much I thought on my first inspection.
The third fourth VW dealer I have visited still does not have an iD7 to look over. It's close in size to the old E-class I think and apparently it has a superb trick suspension upgrade with a comfort mode than is super comfy. Anyway, I had a crawl over an iD5 which is more the size of I5 and was underwhelmed by the drab interior and clunky infotainment system. I like the outside design but I think Hyundai really hit the spot for me.
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Sept 2, 2024 13:30:25 GMT
I was also underwhelmed by the interior of the Enyaq I had a quick look around in the showroom this weekend, in terms of design and materials. Depressing. Although a surprisingly useable boot (i.e. decent length) for a wretched SUV shape.
|
|
|
Post by EspadaIII on Sept 2, 2024 13:39:32 GMT
Yes the boot was a good size but the lack of frunk is irritating for a RWD car. I put so much of my stuff in there like jump leads, granny lead, tyre compressor, washer fluid bottle, big Maglite, folding yardstick, 30m tape measure. Stuff I rarely use but need to keep on me. I used to keep it all in a plastic crate in the boot of all my cars, but the frunk is so much more convenient.
|
|
WDB
Full Member
Posts: 7,425
|
Post by WDB on Sept 2, 2024 13:39:55 GMT
Was it a black Enyaq interior? The lighter options are so much nicer — and not just because light interiors are nicer anyway.
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Sept 2, 2024 13:41:01 GMT
Yes, black interior.
|
|