Horner's Corner

Ten economic facts that every person opposed to Osbornomics should know

The Green Benches: Ten economic facts that every person opposed to Osbornomics should know.

Many thanks to Green Benches.

Greg Philo has a solution, and it’s popular:

The total personal wealth in the UK is £9,000bn, a sum that dwarfs the national debt. It is mostly concentrated at the top, so the richest 10% own £4,000bn, with an average per household of £4m. The bottom half of our society own just 9%. The wealthiest hold the bulk of their money in property or pensions, and some in financial assets and objects such antiques and paintings.A one-off tax of just 20% on the wealth of this group would pay the national debt and dramatically reduce the deficit, since interest payments on the debt are a large part of government spending. So that is what should be done. This tax of 20%, graduated so the very richest paid the most, would raise £800bn. A major positive for this scheme is that the tax would not have to be immediately paid. The richest 10% have only to assume liability for their small part of the debt. They can pay a low rate of interest on it and if they wish make it a charge on their property when they die. It would be akin to a student loan for the rich.

The tax would be extremely popular. We commissioned a YouGov poll of over 2,000 people to test attitudes. There was very strong support, with 74% of the population approving 44% strongly approving. Only 10% did not approve, and agreement was spread right through social groups, with those of the highest income being slightly more supportive than the lower. The strongest support came from those over the age of 55, with 77% in favour 47% strongly. This is an extraordinary result given that there has been no public discussion of this proposal and that the very negative consequences of the alternatives are only just beginning to emerge.

Why Are We Afraid to Tax the Super-Rich?

Here’s an American view on the current tax ‘n’ cuts issue:

We are told that we’re already living well beyond our means we’ve got to cut back on government programs at all levels. Meanwhile, the super-rich are still having a ball.

Our nation is already deeply in debt. How can we possibly afford to invest in our infrastructure, renewable energy, health care, our schools — and create the millions of jobs that our unemployed desperately need?

We are told that we’re already living well beyond our means — that entitlement programs like Medicare and Social Security will bankrupt us. Forget the solar panels, the smaller classes and the new jobs — we’ve got to cut back on government programs at all levels.

Meanwhile, the super-rich are still having a ball. In his annual shareholder letter, mega-investor Warren Buffett wrote, “We’ve put a lot of money to work during the chaos of the last two years. When it’s raining gold, reach for a bucket, not a thimble.” And Forbes Magazine adds, “Many plutocrats did just that. Indeed, last year’s wealth wasteland has become a billionaire bonanza. Most of the richest people on the planet have seen their fortunes soar in the past year.”

More via Why Are We Afraid to Tax the Super-Rich? | | AlterNet.

I’m starting to resent the bidding war between two political parties whose main difference seems to be how fast they plan to make us ‘all’ feel pain. For a start I resent the claim that I must somehow pay for a collapse in a banking system dominated by a class of people whose main interest was the ruthless acquisition of wealth at any cost (to other people).

And I  doubt that the pain of the projected cuts (to pay for the debt they have plunged us into) will be equally distributed. The richer you are the less you’ll feel it, even if you were one of the swine that caused the problem (are you listening Fred Goodwin, you selfish pig?)

Example: cuts in inheritance tax are going to go ahead anyway, according to George Osborne. Why? because they benefit people who have money, that’s why. People who  benefit even more from Tory governments than they do from spineless ‘New Labour’ ones. Contemplate that while you view the wreckage  that was once our public services. ‘We’re all in this together’.  What an insult to our intelligence.

The Tories are planning to slash public spending – but they have no plans to seriously inconvenience the rich.

Here are a few points that ought to be made:

1. Taxpayers contribute 10 times more in pension tax relief to the richest 1% of earners than the state pays to all retired public servants. (Source: Office of National Statistics). If all higher rate income tax pension subsidies were to be abolished it would save 6bn – which is far more than public pensions cost.

2. Tax: if we really want to pay off debts then taxing those best able to pay would be a good idea.

* Capital gains on private homes would yield £3bn.

* 1% on National Insurance would raise 10bn.

* Abolishing tax relief on savings and investments (mainly benefits the rich) would raise 3bn.

* Banks have tripled the profit they made on last year’s mortages. Can we have some of that back?

This is without even considering Inheritance Tax or Trident missiles. But they should be considered, urgently.

3. A recent YouGov poll for Compass has found:

* 73% would support a new tax on bonuses over £10,000

* 63% support setting up a High Pay Commission.

Meanwhile the right want to cut deep into the NHS, Education, Local Authorities, and schemes like Sure Start.

If the Labour won’t make the case, then we have to do it – spread the word.

More on this at : Compass

and at

Cameron’s basic error will cost this country dearly | Polly Toynbee | Comment is free | The Guardian.