So the rich get richer ….and fuel inflation!

Whitewavemark2

Spending money =revenue. Unless it is all on books or food which is possible I suppose.

Even money spent on books and food is taxed and returns to the Treasury at some stage. Publishers pay taxes, as do food manufacturers and the retailers which sell it, plus the people who work in those retail outlets pay income tax and NICs and tax on their fuel to get to work, etc etc.

Germanshepherdsmum

Indeed there are poorly paid public sector workers who will spend their money straight away, though not necessarily in a manner which effects a quick return to the government. And there are very well paid public sector workers who may spend money on things which mean a quick return via taxation (20% VAT) but can also afford long-term savings. The striking consultants are just one example.

But depending where they save their money, banks and stockbroking firms pay tax.

The companies people invest in pay tax.

I have done so.

growstuff

Germanshepherdsmum

Indeed there are poorly paid public sector workers who will spend their money straight away, though not necessarily in a manner which effects a quick return to the government. And there are very well paid public sector workers who may spend money on things which mean a quick return via taxation (20% VAT) but can also afford long-term savings. The striking consultants are just one example.

But depending where they save their money, banks and stockbroking firms pay tax.

Banks are not subjected to tax on deposits. The interest the saver receives is taxed unless put into a tax-free product but interest isn’t exactly a hill of beans at present.

You've been taking lessons from our PMs in evading the question, haven't you, GSM?

I can’t help it if you can’t un

Understand that the value of your argument diminishes in line with the time it takes for money to get back to where it started.

growstuff

The companies people invest in pay tax.

However, unless I'm mistaken, the investment isn't necessarily subject to tax until dividends are paid or capital gains tax on sale. Not all our investments pay out on a short term basis.

Germanshepherdsmum

Understand that the value of your argument diminishes in line with the time it takes for money to get back to where it started.

Which is why I am asking you to explain why you think it diminishes.

I'm not a mind reader

Well if you can’t work out how the strength of your argument diminishes I frankly give up.

Norah

growstuff

The companies people invest in pay tax.

However, unless I'm mistaken, the investment isn't necessarily subject to tax until dividends are paid or capital gains tax on sale. Not all our investments pay out on a short term basis.

Investments are just savings under a different name. They won't be taxed until you realise them, then, either, as you said, capital gains tax and/or spending the money left after the deduction of CGT into the economy.

Then the money, which mostly originated from the govt. (unless it's foreign earnings) is returning to the govt.

Germanshepherdsmum

Well if you can’t work out how the strength of your argument diminishes I frankly give up.

I don't think you have a coherent argument to make. If you did you would have made it clear.

Not only that, but if the money is invested in British companies, they will pay tax on profits and their employees will pay income tax and buy goods which incur taxes.

MaizieD

Germanshepherdsmum

Well if you can’t work out how the strength of your argument diminishes I frankly give up.

I don't think you have a coherent argument to make. If you did you would have made it clear.

I don't understand the argument either. It just doesn't make sense.

MaizieD

Norah

growstuff

The companies people invest in pay tax.

However, unless I'm mistaken, the investment isn't necessarily subject to tax until dividends are paid or capital gains tax on sale. Not all our investments pay out on a short term basis.

Investments are just savings under a different name. They won't be taxed until you realise them, then, either, as you said, capital gains tax and/or spending the money left after the deduction of CGT into the economy.

Then the money, which mostly originated from the govt. (unless it's foreign earnings) is returning to the govt.

You're leaving out the obvious option of never realising gains. Rational to me, many people invest quite long term -heirs may see gains.

Germanshepherdsmum

Understand that the value of your argument diminishes in line with the time it takes for money to get back to where it started.

But it isn't diminished! Oh well!

Clever use of CGT annual exemptions may mean none is paid on realisation. Tax-free products such as ISAs can also be used to avoid payment of income tax. And of course one may spend a heap of money abroad as I have done when buying German cars direct from the manufacturer - those DEMs didn’t reach our government.

Norah

MaizieD

Norah

growstuff

The companies people invest in pay tax.

However, unless I'm mistaken, the investment isn't necessarily subject to tax until dividends are paid or capital gains tax on sale. Not all our investments pay out on a short term basis.

Investments are just savings under a different name. They won't be taxed until you realise them, then, either, as you said, capital gains tax and/or spending the money left after the deduction of CGT into the economy.

Then the money, which mostly originated from the govt. (unless it's foreign earnings) is returning to the govt.

You're leaving out the obvious option of never realising gains. Rational to me, many people invest quite long term -heirs may see gains.

No, she's not. You're avoiding the fact that it's not only investors who make money from investments. If that were the case, nobody would be a financial advisor or a stockbroker. They all make money, which they spend and pay taxes, as do the people they buy goods from. Not only that, but the companies where the money is invested hopefully make profits and pay tax on those profits, as do their employees etc etc.

growstuff

Norah

MaizieD

Norah

growstuff

The companies people invest in pay tax.

However, unless I'm mistaken, the investment isn't necessarily subject to tax until dividends are paid or capital gains tax on sale. Not all our investments pay out on a short term basis.

Investments are just savings under a different name. They won't be taxed until you realise them, then, either, as you said, capital gains tax and/or spending the money left after the deduction of CGT into the economy.

Then the money, which mostly originated from the govt. (unless it's foreign earnings) is returning to the govt.

You're leaving out the obvious option of never realising gains. Rational to me, many people invest quite long term -heirs may see gains.

No, she's not. You're avoiding the fact that it's not only investors who make money from investments. If that were the case, nobody would be a financial advisor or a stockbroker. They all make money, which they spend and pay taxes, as do the people they buy goods from. Not only that, but the companies where the money is invested hopefully make profits and pay tax on those profits, as do their employees etc etc.

You may be correct for you, however you're incorrect for us. Nothing, apart from ISA, we hold as long term investment involved a stock broker, nor are there yearly profits.

Germanshepherdsmum

Clever use of CGT annual exemptions may mean none is paid on realisation. Tax-free products such as ISAs can also be used to avoid payment of income tax. And of course one may spend a heap of money abroad as I have done when buying German cars direct from the manufacturer - those DEMs didn’t reach our government.

Indeed.

My husband also bought a factory car in Europe, I sadly didn't. We holiday out of the country, buy goods out of the country on travels. No taxes here.

As do many. The argument that ‘most’ goes back to the government is flawed.

Does Hunt's calling in the regulators imply that the Tories may consider a prices policy analogous to that introduced by Wilson in 1965 when he created an overseeing Board chaired by the former Tory MP Aubrey Jones? Of course that included an incomes policy too. The Tories seem keen to hold down public sector incomes while letting private sector incomes rise, the latter thereby contributing to inflation.

Norah

growstuff

Norah

MaizieD

Norah

growstuff

The companies people invest in pay tax.

However, unless I'm mistaken, the investment isn't necessarily subject to tax until dividends are paid or capital gains tax on sale. Not all our investments pay out on a short term basis.

Investments are just savings under a different name. They won't be taxed until you realise them, then, either, as you said, capital gains tax and/or spending the money left after the deduction of CGT into the economy.

Then the money, which mostly originated from the govt. (unless it's foreign earnings) is returning to the govt.

You're leaving out the obvious option of never realising gains. Rational to me, many people invest quite long term -heirs may see gains.

No, she's not. You're avoiding the fact that it's not only investors who make money from investments. If that were the case, nobody would be a financial advisor or a stockbroker. They all make money, which they spend and pay taxes, as do the people they buy goods from. Not only that, but the companies where the money is invested hopefully make profits and pay tax on those profits, as do their employees etc etc.

You may be correct for you, however you're incorrect for us. Nothing, apart from ISA, we hold as long term investment involved a stock broker, nor are there yearly profits.

Do you keep any money you have in used banknotes under your bed?

Growstuff Do you keep any money you have in used banknotes under your bed?

No, that hasn't been our way to save.

As I said "Nothing, apart from ISA, we hold as long term investment involved a stock broker, nor are there yearly profits."