The rising cost of living

[foreveryoung]

There might be more money to go round if the Tories could organise not to give the rich all the help, like they are also on the bread line. For example my parents have just got the extra money for heating and they are in Spain for 3 months living the dream. 

[CVByrne]

8 minutes ago, Demitri_C said:

I dont like these tories but im glad truss has reversed this NI hike. Its not the time for it.

If they wanna do it then they should be only implementing it on people earning over 100k a year at a higher rate

I hate when people say the way to solve things is to increase income tax on those who earn over 100k per year. The richest people don't have salaries. They are paid in dividends or they have assets they get low interest loans against. 

We need to tax wealth not income

[Demitri_C]

2 minutes ago, CVByrne said:

I hate when people say the way to solve things is to increase income tax on those who earn over 100k per year. The richest people don't have salaries. They are paid in dividends or they have assets they get low interest loans against. 

We need to tax wealth not income

Not that i disgaree with alot of that but their should seperate taxes on the dividends and assets 

Someone earning 100k should pay more though to someone who earns 20k in my view

[CVByrne]

7 minutes ago, Demitri_C said:

Not that i disgaree with alot of that but their should seperate taxes on the dividends and assets 

Someone earning 100k should pay more though to someone who earns 20k in my view

There are only transaction taxes on sale of assets, capital gains. Which there are ways of gaming. Sell some assets that are up in value and some that have dropped so you're net 0 on those. Also they secure low interest loans against assets. So they use stock portfolio or property portfolio to get lines of credit from banks. Pay no tax on loans and the asset portfolio grows faster than the interest payments on the loans. 

Tax on dividends max out at 38% and it's 32.5% until hits 150k earnings. Capital Gains is 20%. No NI or Income tax on these. 

The tax system is massively outdated and needs reform. Capital gains should be scrapped and an annual asset value charge should replace it. So there's no way to hide, your wealth is taxable.

Edited September 22, 2022 by CVByrne

[markavfc40]

Good thread here from Ed Conway. Whilst interest rates are still historically low in the 80's/90's/early 2000's people were only allowed mortgages 2 or 3 times their earnings not the 4,5, or 6 times their earnings as they do now.

 

[osmark86]

14 hours ago, CVByrne said:

I hate when people say the way to solve things is to increase income tax on those who earn over 100k per year. The richest people don't have salaries. They are paid in dividends or they have assets they get low interest loans against. 

We need to tax wealth not income

this this & this.

Sweden removed our wealth tax 2007 under a conservative regime and it hasn't been brought back since. Don't think we'll see it anytime again soon considering the election results. People are more interested in blaming immigrants for their issues I suppose...

[blandy]

17 hours ago, Davkaus said:

Not to mention the VT elite boasting about all these avocados they're eating.

I enjoyed breakfast today

Might as well enjoy life before the Tories burn us all in enviropocalypse/war/ cold caves.

[OutByEaster?]

@blandy sad to see the cuts hitting hard there - no pickled onion?

 

[Chindie]

3 minutes ago, OutByEaster? said:

@blandy sad to see the cuts hitting hard there - no gravy?

 

Corrected.

[El Zen]

It’s really getting down to the bare bones for me. To keep the house after my divorce, I had to take on the entire mortgage and borrow an additional 100k to buy her out. With raised interest rates, my monthly payment is now well over half my income. My car lease has increased with the higher interest rate as well. With petrol, electricity and food prices through the roof, I can barely afford much else. One all dayer in the pub runs uncomfortably close to breaking my monthly budget. 

I chose the right f***ing year to get divorced, didn’t I? 

[Genie]

4 minutes ago, El Zen said:

It’s really getting down to the bare bones for me. To keep the house after my divorce, I had to take on the entire mortgage and borrow an additional 100k to buy her out. With raised interest rates, my monthly payment is now well over half my income. My car lease has increased with the higher interest rate as well. With petrol, electricity and food prices through the roof, I can barely afford much else. One all dayer in the pub runs uncomfortably close to breaking my monthly budget. 

I chose the right f***ing year to get divorced, didn’t I? 

Ditch the leased car is the first thing i’d do. Get a cheap runaround for a year or so.

[lapal_fan]

It always blows my **** mind when I see blandy and outbyeaster posting between himself.

Guys a frickin lunatic.

[El Zen]

1 minute ago, Genie said:

Ditch the leased car is the first thing i’d do. Get a cheap runaround for a year or so.

I’m not sure if that’s even possible? My lease runs until August 2023, at which point I’ll obviously look to downsize or restructure. 

[ender4]

38 minutes ago, El Zen said:

I’m not sure if that’s even possible? My lease runs until August 2023, at which point I’ll obviously look to downsize or restructure. 

It actually might be ok if you ask the lease company. Depending on the car and because second hand car prices are so high at the moment, they might actually pay you to end the lease. People have definitely been offered money to hand the car back recently. 

 

 

[blandy]

4 hours ago, OutByEaster? said:

@blandy sad to see the cuts hitting hard there - no pickled onion?

 

Last night’s tea.

[Xela]

2 hours ago, El Zen said:

I chose the right f***ing year to get divorced, didn’t I? 

Yes.

[El Zen]

Just now, Xela said:

Yes.

F*** it, you’re absolutely right actually

[Xela]

1 hour ago, El Zen said:

I’m not sure if that’s even possible? My lease runs until August 2023, at which point I’ll obviously look to downsize or restructure. 

Worth investigating with the lease company. Over here, you can voluntarily surrender a lease car as long as you have paid over 50% of it. Basically hand it back. Not sure if you have similar arrangements where you are.

Also, what type of lease is it? A lease where you have to hand it back at the end or is there an option to purchase (like a PCP over here)? If the latter, you could investigate what your settlement/termination charge is now to buy against what the second hand value is. May work in your favour. 

[El Zen]

Just now, Xela said:

Worth investigating with the lease company. Over here, you can voluntarily surrender a lease car as long as you have paid over 50% of it. Basically hand it back. Not sure if you have similar arrangements where you are.

Also, what type of lease is it? A lease where you have to hand it back at the end or is there an option to purchase (like a PCP over here)? If the latter, you could investigate what your settlement/termination charge is now to buy against what the second hand value is. May work in your favour. 

The lease is like a PCP, I suppose. I have an option to purchase at the end of the lease, for a non-fixed price. I’ll probably end up just running down the lease anyway, to be honest. I absolutely love the car, even if it is slightly bigger than my current everyday needs, and the lease lets me wait and see another few months if I want to keep it long term or downsize. It’s not killing me anywhere near as much as my mortgage payments anyway, and I have a minimum 2,3% pay raise coming some time before the end of the year plus a fair wedge of savings if absolutely necessary. Best case scenario is to find someone to share the expenses with, of course, and luckily I’m an attractive word removed

[markavfc40]

Interest rates predicted to rise a further 2% by November with the BoE making an emergency intervention off the back of government action in recent days. That will mean interest rates have risen 4% this year. It is going to cripple a lot of people on top of everything else rising.