Topic: | Labour's Next Tax Rises - Capital Gains Tax on Sale of Houses ? | |
Posted by: | David Giles | |
Date/Time: | 19/01/05 19:43:00 |
As we all know, Labour fought the 1997 and 2001 elections saying that if elected they had no plans to raise income tax. Nevertheless, since then there have been at least 66 tax rises,including a large increase in National Insurance contributions, a huge raid on pensions funds, a 50% average increase in council tax and a massive increase in public expenditure and the national debt. In addition, the so-called Public Finance Initiatives will ensure that our children and their children will have to pay dearly for debts currently being incurred by the Government but not include as part of Government capital expenditures as the capital investment is being made by the private sector which will be paid out of Government current expenditures for years to come. The continuation of the War in Iraq, which has cost the USA and the UK over $100 billion so far, will continue to place incredible pressure on The Treasury and hence on us, the taxpayers. Ann Keen's boss Chancellor Gordon Brown in recent years has been everything but prudent. He has thrown our money at everything with minimal and in many cases negative results.Public expenditure is out of control and the Government is facing a serious shortfall between income and expenditure unless the Government (a)cuts expenditure -which it is unwlling to do, (b) borrows - which will raise interest rates and squeeze the private sector or (c) raises taxes. The Chancellor is unlikely to raises taxes before the general election. However, accfording to a newspaper report today, if Labour wins the General Election, his four options for raising taxes may be: 1. Capital Gains Tax on the sale of people's main private home 2. VAT on food 3. 2% increase in basic rate income tax 4. A 10% increase in National Insurance Contributions I wonder which options are likely ? Options 1, 2, 3 or 4 or a combination ? |