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"Let me tell you about the very rich. They are different from you and me."

(368 Posts)
DaisyAnne Sat 09-Apr-22 09:24:18

In this country, if you are very rich, you are treated as an individual; if you are poor you are treated as a household.

The "household" idea stems from the view of women, originally legally seen as chattels and later as too feeble-minded to have a bank account without a male guarantor as simply part of a household. It seems that in some parts of government this thinking has continued.

If you are rich, one of you may pay income tax in one country and the other in another. If you are poor the government lumps together "household" income. It even does this when considering a member of that household who is in no way related to you and for whom you have no legal responsibility. If you live together, you are lumped together.

This includes those on Universal Credit. The Benefit for the employer that the worker has to claim. The Benefit that Rishi Sunak saw fit to cut. Rishi Sunak, the man who saw questions about his "households" income as a "smear" while forcing others to ask their "household" to give the government all their private information.

Pammie1 Sat 09-Apr-22 12:55:26

Doodledog

Germanshepherdsmum

You don’t have to be ‘very rich’ to be treated as an individual for tax purposes. Every person liable to pay UK tax is treated as an individual.
As regards household income being considered for benefits purposes, wouldn’t there be an outcry if the spouse of a high earner were paid UC? That could easily happen if household income were not taken into account.
As regards the so-called cut in UC, GrannyGravy says it all. How many ordinary working people received a permanent £20 pw wage increase during the pandemic?

I don't understand why we are taxed as individuals but benefit and other entitlements are paid as households, other than as social engineering to encourage marriage.

My views on means-testing are well-documented on here (I hate it grin ), but I also think that adults who are able to contribute to the coffers should do so in their own right, and that couples shouldn't be given an unfair advantage over single people. The state shouldn't give financial advantage to one way of living over another, IMO.

If someone has contributed via tax/NI they should be able to claim benefits (and by this I mean pension, unemployment benefit, maternity pay etc, whether or not I would view them as 'benefits' ordinarily) as an individual, and their spouse's income should be irrelevant. Equally, I don't think that couples where only one person has paid in should expect to get two lots out when it comes to claims, so I would more clearly restore the link between contributions and entitlements, and remove any tax benefits to belonging to a couple, too.

Wrt the Sunaks, I agree with Coastpath:
^To use or condone the use by family members of these methods of absolving the duty to pay our way fairly (not legally, but fairly and with charitable intent) says something about a person which does not sit right with my idea of someone who becomes an MP in order to serve their country and make society a better place for all.^

I agree. Problem is that successive governments have tinkered with individual benefits (notably disability benefits) over the last few years, so that means testing of some and not all makes very little sense. Child benefit for example combines couples income and caps for means testing at £60,000, but doesn’t differentiate when dealing with single parents - so effectively the cap is £30,000 per parent when treated as a couple.

Problem is, that left in the hands of this and other Tory governments eventually the goal is ‘small state’ and consequentially, a massively shrunken welfare state. The ordinary working man and woman see it as a safety net - you pay in when you can and it’s there if you need it. But imho the Tories see it as a gravy train and they want it gone. They can’t do it overnight so a slow erosion is taking place under our noses. An example of this was the change from Disability Living Allowance to Personal Independence Payment in 2013.. The theory was that DLA was far too easy to claim and open to fraud (the instance of which was later proved to be around 0.5%) and that PIP would deliver massive savings because it would be much harder to claim. The savings never happened because after PIP was introduced, the government realised that the vast majority of DLA claims had been genuine and the successful appeal rates against frankly ridiculous cases of denial of PIP, soared. The plan now, is that by 2027, PIP will no longer be a universal benefit. It will be absorbed into the Universal Credit system, means tested and will not be available for anyone who doesn’t qualify for UC. Millions of disabled people will lose vital support and the Motability scheme that gave disabled people their independence, will collapse. If you can’t get what you want first time round, move the goal posts until you do.

Sunak is just the latest example of hypocrisy and double standards, and despite the headline this morning that his wife has decided to pay tax in the UK to ‘save her husbands’ career’, I’ve no doubt that he’s in a better position than most to advise on how to pay as little as possible. A government of billionaires can’t/won’t represent ordinary people and will have little idea of the pressures they face - how can they when they’re massively cushioned from the policies they enact on the rest of us ? Until the British public wake up and realise this, I’m afraid we’re stuck with it.

growstuff Sat 09-Apr-22 12:52:54

Jaxjacky

So growstuff someone who has dedicated a large portion of their life caring for, let’s say a parent. They’ve had no chance to buy their own property or build any semblance of a career, maybe claimed carers allowance. They inherit a property, on the death of their relative, perhaps some money, you’d tax it all and take it away?

In that situation, the parent could/should have made provision for the carer during their lifetimes - maybe by paying a realistic wage.

growstuff Sat 09-Apr-22 12:51:09

How about handing it down to other people's children and grandchildren too? In a generation or so, people don't care that much about their ancestors' lives, but they still have the money they passed on, which gives some an unfair advantage.

Jaxjacky Sat 09-Apr-22 12:49:54

So growstuff someone who has dedicated a large portion of their life caring for, let’s say a parent. They’ve had no chance to buy their own property or build any semblance of a career, maybe claimed carers allowance. They inherit a property, on the death of their relative, perhaps some money, you’d tax it all and take it away?

growstuff Sat 09-Apr-22 12:49:07

I'm not advocating taking money away from people until they're dead! Shrouds don't have pockets. I'm suggesting one way people could start off in the same place financially - it's then up to them if they earn money throughout life.

volver Sat 09-Apr-22 12:49:06

US example, but I think its relevant. I don’t think most of us realise just how rich ”super rich” people are. Mackenzie Scott got rich by being married to a person who got rich. She is the 22nd richest person in the world and is giving away her wealth faster than anybody ever has before.

Recently she gave away $2.7 billion and while she was organising that her fortune grew by more that $2.7 billion. She literally can’t give it away fast enough.

Also, can someone explain to me how it is compatible that we all have to earn our money but its somehow OK to have money and property your parents leave you, that you haven't done anything to generate?

GrannyGravy13 Sat 09-Apr-22 12:35:37

growstuff

GrannyGravy13

growstuff how would you distribute wealth more equally ? Surely the point is to earn one’s money?

There was a social experiment for TV in Jaywick Essex a few years ago where they gave some families a larger sum of money than they were used to, from what I recall it didn’t end particularly well.

I'd start off by taxing inheritance at 100%, so everybody starts off from the same starting block in life.

No Government will bring in 100% inheritance tax.

Why the need to control others accumulated wealth, if it’s been made legally and tax is paid.

I do not mean the super rich I mean those who have scrimped and saved to buy their own home, what on earth is wrong with handing it down to one’s children or grandchildren?

growstuff Sat 09-Apr-22 12:34:00

GrannyGravy13

As I understand it if you hold a Green Card you have to pay your taxes in USA.

Yes, you do, but you also have to commit to “make the US your permanent home”, which doesn't show a great commitment to the country whose finances you're controlling.

Dinahmo Sat 09-Apr-22 12:33:33

Blossoming

F. Scott Fitzgerald ‘All The Sad Young Men’.

As he goes on to say, they possess and enjoy early and it does something to them.

They don’t understand what it’s like to be poor and they never will.

A very apt quote.

I doubt very much that the Sunaks really know the value of money.

Once I reached the age that I was old enough to work in a shop I worked on Saturdays in Woolies. From what I remember my wage for the day was around 12 to 13 shillings. At that time a single 45 cost 6/8d and an album about 30 shillings. The first album that I bought was the Beatles "Please Please Me" and in order to buy it I had to save 3 days pay.

I am sure that I am not alone in this and I am not complaining. It did, however, give me an idea of the value of money which has never left me. I still work and I still think "how many hours before I can this or that"

That is the difference between the Sunaks and the vast majority of the population.

growstuff Sat 09-Apr-22 12:31:23

GrannyGravy13

growstuff

Jaxjacky

Smileless2012 and I wonder how many on GN pay their cleaner/gardener etc cash in hand?

I wonder how many on GN can afford a cleaner/gardener.

I pay by bank transfer.

People pay me by bank transfer too. It's years since anybody paid me in cash. I pay my window cleaner by bank transfer too. It's years since I used cash in my daily life.

GrannyGravy13 Sat 09-Apr-22 12:30:04

As I understand it if you hold a Green Card you have to pay your taxes in USA.

growstuff Sat 09-Apr-22 12:29:20

25Avalon

A billionaire as a chancellor might not be that bad as it shows he know how to accumulate wealth and look after it. The draw back is does he have the empathy to distribute it across society? I am also a little confused about his green card given to him when he lived in the States on the understanding he would permanently reside there.

But he doesn't. He knows how to accumulate money for himself. That's a whole different ball game from looking after the wealth of a nation.

GrannyGravy13 Sat 09-Apr-22 12:28:53

growstuff

Jaxjacky

Smileless2012 and I wonder how many on GN pay their cleaner/gardener etc cash in hand?

I wonder how many on GN can afford a cleaner/gardener.

I pay by bank transfer.

25Avalon Sat 09-Apr-22 12:27:48

A billionaire as a chancellor might not be that bad as it shows he know how to accumulate wealth and look after it. The draw back is does he have the empathy to distribute it across society? I am also a little confused about his green card given to him when he lived in the States on the understanding he would permanently reside there.

growstuff Sat 09-Apr-22 12:27:40

Time for voters to think carefully.

Indeed! People need to make democracy work.

growstuff Sat 09-Apr-22 12:26:09

Does anybody pay their gardener/cleaner enough, so they can pay £30,000 to avoid UK tax?

nadateturbe Sat 09-Apr-22 12:25:38

Urmstongran

To buy stuff with it MaizieD?
Certainly not to hoard it I imagine.

I've tried to say this before on GN.
Sad individuals who hoard more than they or their descendants will ever need while others starve/die.
How does it make them happy?

UC uplift was only meant to be temporary. But bearing in mind how costs have soared it should have stayed and even increased.

Time for voters to think carefully.

growstuff Sat 09-Apr-22 12:25:14

Jaxjacky

Smileless2012 and I wonder how many on GN pay their cleaner/gardener etc cash in hand?

I wonder how many on GN can afford a cleaner/gardener.

growstuff Sat 09-Apr-22 12:24:32

I'd ensure that earned income and unearned income are taxed at the same rate.

Jaxjacky Sat 09-Apr-22 12:23:58

Smileless2012 and I wonder how many on GN pay their cleaner/gardener etc cash in hand?

growstuff Sat 09-Apr-22 12:23:54

GrannyGravy13

growstuff how would you distribute wealth more equally ? Surely the point is to earn one’s money?

There was a social experiment for TV in Jaywick Essex a few years ago where they gave some families a larger sum of money than they were used to, from what I recall it didn’t end particularly well.

I'd start off by taxing inheritance at 100%, so everybody starts off from the same starting block in life.

Dinahmo Sat 09-Apr-22 12:22:26

GrannyGravy13

Mr. Sunak has not cut Universal Credit the £20 uplift was given over the various lockdowns of the last two years. It was said at the time that this was temporary.

I am sure that there is a scheme whereby a non-working wife/husband can transfer some of their tax allowance to the other.

It is not the super rich that are at fault it is the system, which successive Governments have not amended, that’s all Governments, Conservative, Conservative/Lib Dem coalition and Labour.

As long as the so called super rich are not doing anything illegal they remain untouchable…

There is - all of £1250.

growstuff Sat 09-Apr-22 12:22:12

Whitewavemark2

To my mind the whole point is not how wealthy you are but the fact that in this country it buys you access to the democratically (?) elected government and the ability to influence policy, whilst at the same time ensuring as far as possible that your stake in this country is reduced to the smallest extent possible

That's the point for me too. Being Chancellor is a powerful position and the person holding that role can affect people's lives in a real way. One would hope that that person has a stake in the idea of "one nation", not somebody who can hold a Green Card for another country while holding that position and benefits from having a spouse paying taxes elsewhere.

Doodledog Sat 09-Apr-22 12:19:22

growstuff

The question should be "Do we want somebody who has no idea what it's like to struggle financially and couldn't give a fig about most people, running the country's (and our) finances?"

My feeling is that no, we don't.

Logically, there is no reason why a rich person wouldn't give a fig about others, but when it comes to understanding the impact of cutting a family's income by £20 a week, it's hard to see how he will have a clue. His lot will probably bin more than that in stale bread if they all get different loaves of the artisan stuff.

GrannyGravy13 Sat 09-Apr-22 12:18:03

growstuff how would you distribute wealth more equally ? Surely the point is to earn one’s money?

There was a social experiment for TV in Jaywick Essex a few years ago where they gave some families a larger sum of money than they were used to, from what I recall it didn’t end particularly well.