Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Stock Market Dow 30k before End of 2020? - 13th Jul 20
Credit Market Investments Turned Into End-User Risk Again - 13th Jul 20
Investors Are Going All-In on This Coronavirus Proof Industry - 13th Jul 20
5 Vital Insights That You Can Gain From Instagram Trackers - 13th Jul 20
Stop Believing The 'Economy' Is The Same As The Stock Market - 12th Jul 20
Spotify Recealed as The “Next Netflix” - 12th Jul 20
Getting Ahead of the Game: What Determines the Prices of Oil? - 12th Jul 20
The Big Short 2020 – World Pushes Credit/Investments Into Risk Again - 11th Jul 20
The Bearish Combination of Soaring Silver and Lagging GDX Miners - 11th Jul 20
Stock Market: "Relevant Waves Vs. Irrelevant News" - 10th Jul 20
Prepare for the global impact of US COVID-19 resurgence - 10th Jul 20
Golds quick price move increases the odds of a correction - 10th Jul 20
Declaring Your Independence from Currency Debasement - 10th Jul 20
Tech Stocks Trending Towards the Quantum AI EXPLOSION! - 9th Jul 20
Gold and Silver Seasonal Trend Analysis - 9th Jul 20
Facebook and IBM Tech Stocks for Machine Learning Mega-Trend Investing 2020 - 9th Jul 20
LandRover Discovery Sport Service Blues, How Long Before Oil Change is Actually Due? - 9th Jul 20
Following the Gold Stock Leaders as the Fed Prints - 9th Jul 20
Gold RESET Breakout on 10 Reasons - 9th Jul 20
Fintech facilitating huge growth in online gambling - 9th Jul 20
Online Creative Software Development Service Conceptual Approach - 9th Jul 20
Coronavirus Pandemic UK and US Second Waves, and the Influenza Doomsday Scenario - 8th Jul 20
States “On the Cusp of Losing Control” and the Impact on the Economy - 8th Jul 20
Gold During Covid-19 Pandemic and Beyond - 8th Jul 20
UK Holidays 2020 - Driving on Cornwall's Narrow Roads to Bude Caravan Holiday Resort - 8th Jul 20
Five Reasons Covid Will Change SEO - 8th Jul 20
What Makes Internet Packages Different? - 8th Jul 20
Saudi Arabia Eyes Total Dominance In Oil And Gas Markets - 7th Jul 20
These Are the Times That Call for Gold - 7th Jul 20
A Reason to be "Extra-Attentive" to Stock Market Sentiment Measures - 7th Jul 20
The Beatings Will Continue Until the Economy Improves - 6th Jul 20
The Corona Economic Depression Is Here - 6th Jul 20
Stock Market Short-term Peaking - 6th Jul 20
Gold’s Major Reversal to Create the “Handle” - 5th July 20
Gold Market Manipulation And The Federal Reserve - 5th July 20
Overclockers UK Custom Build PC Review - 1. Ordering / Stock Issues - 5th July 20
How to Bond With Your Budgie / Parakeet With Morning Song and Dance - 5th July 20
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

The British state is at war – on terror, poverty, manufacturing and light bulbs...

Politics / UK Tax & Budget Mar 23, 2007 - 08:28 PM GMT

By: Adrian_Ash

Politics FAT TONGUE placed firmly in cheek, the British chancellor – Gordon Brown – pulled off his greatest feat of magic in 10 years of trickery at Westminster on Wednesday.

"Abracadabra," he shouted for 54 minutes...and poof!

Nothing had changed except the detail – and the press coverage. He got the headlines alright. Even the press knows to watch his sleight of hand these days.

Now that's magic!


The detail's so dull, in fact, that only London's army of financial hacks could spin it out to 20 pages packed with "analysis". Gordon Brown's swag-bag was £1 billion lighter in 2005/6 than he had projected. Now he reckons he'll nab £1 billion more in 2006/7 than he forecast 12 months ago.

A billion here...a billion there...who cares? The Cabinet Office alone will spend £2.4 billion this year. On what, you might wonder – new mugs and biros?

But discussing policy doesn't come cheap. Keeping the New Labour leaders in tea and biscuits will cost 9% more in 2007/8 than it did during the last fiscal year.

You gotta keep the troops' strength up, of course – and war never came cheap. Now Westminster is waging war on terror...poverty...light bulbs...and what's left of British manufacturing.

The only thing sure to benefit is inflation. Everything else cancels out.

So what if Gordon Brown knocked 2p off the basic rate of income tax? He more than doubled the tax rate on your first £2,000 of taxable income...

He cut 2% off corporation tax, but excluded anyone investing in plant...

R&D firms got a £100m tax cut, but the punitive charges on North Sea oil & gas firms remain. Better to trade "carbon credits" than squeeze the last few drops out of Britain's domestic resources. Offshore hedge funds trading these 21st century indulgences will now enjoy zero tax...

He also gave fresh tax breaks to "sukuk" investors looking for financial products to comply with Koranic law. But he raised the tax-rate paid by very small businesses. A smart way to encourage risk-taking outside the financial markets!

He gifted free money to property speculators too, sharing the tax advantages of REITs with unit trusts invested in real estate. Their number has swollen from four to 15 over the last two years. You might wonder where the value-added lies here, but so what? That kind of growth at M&G and New Star deserves recognition – as do second-home owners buying property overseas.

Cutting income tax charges on holiday homes will reward just 2-3% of British adults, says the Financial Times. Failing to cut the 70% charge on pension assets passed onto your family, on the other hand, hurts everyone wanting to save for the future.

"Mr Deputy Speaker," said Prudence through his newly-white teeth, "I want to send a signal about the importance we attach to encouraging saving." Raising interest rates would make a start. For basic-rate payers in Britain, cash in the bank now pays minus 0.4% after tax and inflation.

He also recalled his "ambition of...two million new owner occupiers." Yet again, higher interest rates would actually help here. Even Mervyn King at the Bank of England knows that cheap money has failed to cut house prices! Meddling with shared-ownership schemes only pushes property inflation higher again.

Not that it matters, of course. No budget from Culpability Brown, Ed 'Chocolate' Balls, George Osborne or any other buffoon could halt the trend towards big government. By definition the modern state steals your money just to give you it back at the government's discretion and a time of the bureaucrats' choosing.

Better look after yourself. Get what wealth you can to safety. The ballot box will only ever pay dividends if you sneak into Westminster – or Washington, Brussels, Canberra, the Kremlin or Auckland – and grab a few non-exec directorships alongside your tax-funded expenses.

By Adrian Ash

Adrian Ash is head of research at BullionVault.com , the fastest growing gold bullion service online. Formerly head of editorial at Fleet Street Publications Ltd – the UK's leading publishers of investment advice for private investors – he is also City correspondent for The Daily Reckoning in London, and a regular contributor to MoneyWeek magazine.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules