Friday, December 08, 2006

Back to Old Labour

In his pre-budget report, GB announced that in addition to inheritance tax of 40%, there will be a new tax of up to 70% on self-invested personal pensions. Yes, we're going back to 60s socialism under GB and this is only the beginning. The Labour Govt is quite happy for people to lose their life savings (remember Equitable), perhaps because it doesn't want any goods to be passed on to the next generation. It's also very happy for young people to start their lives up to their ears in debt. It purports to encourage home ownership but the reason for this is not entirely clear, particularly if one allows for the possibility that house prices may fall. Maybe when he's PM, GB will take this to its logical conclusion: all property should be owned by the state. After all, he's very happy for 40% of the workforce to be employed by the state.


Anonymous Anonymous said...

Hmm.. this is being very harsh.

It is all very well for the likes of Jacob Rees-Mogg, who doesn't exactly have to worry about where the next penny is coming from. But not everyone is in the same boat - some people have to survive on a state pension - where exactly does that money come from then ?

You use 'socialism' as though it was a 'swear-word'. Not everyone has the same advantages in life. You act as though everyone has the right to pass on huge amounts of accumulated wealth with ne'er a thought for those who didn't have a wealthy family.

I feel very sorry for those who lost money in Equitable. However, very few people complain when the stock market is buoyant, and they are making 'money for nothing' - there are swings and roundabouts here, and one has to take the rough with the smooth.

Yes, there are certainly disadvantages to state ownership of assets. But to sign up to the 'cult of the equity' that corporations always have a better solution ignores the fact that the railways are considerably worse under private ownership. PFI is going to lead to paying twice as much for the same assets compared to them being in the public sector.

You seem to be saying that it is bad to be going 'back to the 60s' but I would contend that Gordon's real folly is to outdo the Tories in his folly to copy their failed attempts to privatise..

8:38 pm  

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