|Ed Milliband speaks to Vince Cable|
Think of the poor people on benefits they say - what of them. The thing is, its the maths that sticks in my craw. Say one earns £500,000 a year, a princely sum for a banker. and sadly, a few multiples of my own hard earned crust. Already this is taxed at over 50% in its entirety. So take home is somewhere near £250,000, but not quite.
Now if you have this kind of income you could have thought about buying a house at 4x your earnings at about £2 million. You may even have been able to rent your pre-richness property too, or bought a small place in Spain. Now the proposal is to tax this at £20,000 a year, maybe even £100,000 if the plan really is to raise £2 billion (OK so this is an uncosted Labour gimmick, but here we are they are nailed on to win the next election).
Plus you would have bought your house, paying a whopping 7% or £140,000 in stamp duty. Then you have council tax and your rather expensive £1.5 million mortgage at say 5%, so a mere £80 thousand a year in outgoings and upkeep.
So worst case scenario and even on £500,000 a year you could not live in a £2 million house. Even then a well paid FTSE100 executive could not do it. You would have not money left to live or feed your family. Even with a mere £20,000 tax your actual take home is going to be £10,000 a month - is loads, but blimey, its getting on for a total tax rate of 80% - this is before VAT, APD, Insurance taxes, MOT's etc.
If this really gets discussed seriously it will certainly hammer house prices at the top end. What gets me is that two public or private sector workers on good salaries of say £60,000 each are going to be are going to be taking home a total sum per month of about £8,000 a month.
I have long considered leaving the country, but have not managed to find the right role in the right country as yet, this finishes for me though if I ever succeed in my ambitions, why be successful in the UK - the marginal taxes will be so high that it just won't be worth it. It's scary, the 1970's were supposed to be history, not a roadmap to the future.
The final nail for me is that I have yet to see anyone on the gogglebox try and correct this nonsense, everyone just lies and says they don't have any money and screw those who do. I have my doubts these well paid journalists and politico's have all done so badly; but they dare not speak out against the zeitgeist.