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As much as I’m dubious about the Lib Dems overall, with a lack of experience running government, it goes without saying I’d much prefer them in charge to Golden Gordon, the modern day satan who has destroyed this country with his gold asset sales, pensions raids and doubling of the national debt (and that’s only the official figure so far, wait until all his PPP liabilities and pensions promises come through.

They have two policies that I totally agree with, along with the thoroughly likeable and knowledgeable Vince Cable.

Firstly, the £10,000 tax free allowance.  Fantastic idea – as I explained to my sister recently, who’s on about that figure salary, if we raised the tax allowance but scrapped all the complicated awful tax credits systems, she’d be on the same as she is now after tax, but we’d have just abolished a whole load of unnecessary blood-sucking government jobs.

Next, I love the thought of VAT on new houses.  I debated this big-time with people at work but no-one gets it – buy a brick to build a new house and it’s VAT-free, buy a brick to repair an old house and hey presto, it’s 17.5% more expensive!  How fair can that possibly be?  It goes a long way to explaining the developer’s obsession with brownfield sites and the desire to knock down some beautiful, superior quality old buildings and replace them with identikit, poorly built new constructions.  Any fool knows it’s much more environmentally friendly to restore than rebuild, right?

I doubt they’ll get in though, sadly.  But i don’t think the conservatives go far enough in being new and refreshing.  I want to see promises of cutting red tape big time and loads of unnecessary public sector jobs being offloaded – it’s the only way to save this country long term economically.

A while ago, on the ITContracting in Denmark Blog, a comment was written about carrying two Danes on your shoulders, through the high taxes that Danes have to pay to support a sickening welfare state where people can live unemployed on 90% of their last working salary, and get a whole host of other freebies off the overly generous Danish state.  Well, cut forward to Alistair Darling’s comments yesterday about how those with the broadest shoulders in the UK must pay their “fair share” of the burden.  What’s so relevant about this comment of Darling’s?  Well, it’s the exact same terminology as the Danish tax office use to justify their sickeningly bloated welfare state to prospective foreign workers naive and foolish enough to consider working in the communist hell that is Denmark.  And if you don’t believe me, you can read their government propaganda in their leaflet, Tax in Denmark, a guide for new citizens.

Does this help make it clearer which way the UK is heading?

After an unprecented day of frenetic activity, Gordon Brown stood outside Number 10 this evening and announced that the latest victim of the financial malaise the credit crunch, none other than the Tooth Fairy, had been saved.  “At a time when families are worrying about food and fuel bills, job security and whether they can borrow the money to buy a new home, it will be a great relief to all to know that a great British Institution has been saved.  Children can sleep safe in their beds tonight, and, as everyone knows, I love children…and old people…and people in general…honest…oh is there an election due soon…?”.

It emerged early this morning that the Tooth Fairy had been in financial difficulties for some time, mainly due to increased borrowing costs as a direct result of the credit crunch.  Details at this moment are sketchy, but it appears that for some years the wholesale price of pre-owned, white childrens teeth had been falling.  At the same time, the expected minimum financial reward of children for their teeth has continued to rise unabated, leading to a classic inbalance.  In recent years, the fairy had attempted to buttress its business by obtaining various lines of readily available cheap credit, hoping that the low prices were temporary and that children would begin to be more realistic with their financial expectations.  But in the face of the dramatic repayment increases and an inability to renegotiate new repayment terms, it has now had to admit defeat.  All sides denied that there had been dramatic overvaluation of the mortgaged stockpiles of white child’s teeth and that the £100bn of taxpayers money now underpinning the newly nationalised entity represented good business for the taxpayer.

Problems were first noticed last week in Wolverhampton, when the Tooth Fairy started leaving 1 and 2p coins, instead of the now customary £1 and £2 for discarded child teeth.  Speaking between puffs on her cigarette, doting Mother Carley Le Sea said “It ain’t f**kin fair…me son Daryll was crying…and ah don’t effin know how Tyler’ll cope”.  While the likes of Carley greeted the government decision to effectively nationalise the tooth fairy, believing it will guarantee a minimum financial standard for the tooth fairy to adhere to and help hard-pressed mothers such as her to use her existing child benefits for other core expenditures, such as fags and beer, others, such as city analyst Austin J’urqhard were less sanguine about the future – “This effectively leaves the way clear for other child-based insitutions vital to our every day lives with an escape route they dare not have considered from their own financial woes.  we can expect others, such as Santa, Jack Frost and even the bogeyman to be looking very carefully at these events”.

 Conservative MP and economic spokesman, Gerald Richgitt took a slightly different view of proceedings – “It is wrong for government to nationalise entities such as this.  If the Tooth Fairy is no longer a viable business proposition then it should be allowed to fall by the wayside…aside from issues with the way taxpayer money has been spent, we view this as the thin end of a very serious wedge.  How soon before the tooth fairy begins to be used for setting a political agenda…we can foresee a time when the tooth fairy might be used for state brainwashing, or as a way to distribute increased benefits to lower income families, while alienating middle and upper class families”.

Whitehall officials are reported to be working into the night in an attempt to set up a “used child tooth stock overspill working party”, to decide upon a positive course of action for dealing with the stockpiles of children’s teeth that have been uncovered, and it is believed that a job opportunity will exist for a major player from the private sector to generate the maximum income for the state from the sale of the assets so far identified, mainly 20,000 tonnes of small white teeth, some with dried blood and bits of root still attached.

The Tooth Fairy herself was said to be unavailable for comment, but is believed to be considering a consultancy-style job offer within the newly nationalised entity.

This story is freely available for republication as long as due credit is given to Alan Dunwiddie and TaxationNation.co.uk

I was really pleased when Golden Gordon announced this week that he intended to deal with speculation, manipulation and corruption.  Ah great, that’ll mean an end to the setting of too-low interest rates that encourage a fake economic boom, putting everyone into debt and leaving us with the after-effects for years to come.  Or, could he perhaps be suggesting an end to the fake money creation that has gone on these last 12 years Labour were in power, and the pumping of goverment-borrowed money into the economy through the creation of pointless civil service jobs?

Or am I just being silly?  Of course, I am.  Those last items were all caused by Gordon himself, and if he can successfully deflect attention from himself by blaming a faceless bunch of pure evil people, working in the money markets, the dreaded “short-sellers”, then all the better.  Well, to a certain extent they may be gamblers, but in a free market, gambling is most definitely not illegal, and in fact, short-selling is to blame for this crisis about as much as the fact that it rained last Wednesday.

Truth is, if short-sellers really were pushing the price of HBOS down too much, then, in a free market you’d find plenty of buyers on the other end of the equation.  The fact there wasn’t suggests to me that actually something really was sickly and wrong with HBOS and if the governments hadn’t announced more bail-outs and the eventual ludicrous decision to spent billions on buying these worthless mortgage bonds, then I suspect HBOS might have headed even lower.

Nice to be able to deflect attention from yourself, though isn’t it?  especially considering the amount of rightly deserved negative press going around right now.

In summary, this latest bout of bailouts will long term cause the most dreadful inflation.  It has to, through the simple amount of new money created to buttress up these ailing businesses.  Secondly, something else terrible has occured.  The government now considers it fit to outlaw previously legal ways of business (in this case short-selling) and no-one has yet begun to question the awful damage this must do to London’s reputation as the world’s leading and free financial centre.  I suspect it could be a small push towards much of the smart money to migrate to the likes of Singapore in the years ahead.

I honestly believe that  nothing makes a business more efficient than a desire to provide a service and make a profit by doing so.  The thing about businesses is that, unlike government and taxes, the public always has a choice whether to buy their wares or not, and all the political capital over the “excess” profits of the UK utilities and how they are virtually stealing money from vulnerable old people and those on low incomes is a sad state of the silent, creeping socialism we’re all subjected to nowadays.

Ye gods, have these people no idea how things work?  One of the real unsaid reasons why commodities are going up in price is actually the inverse, because the government, led by Golden  Gordon created such a consumer-led boom based on paper money these past 11 years that actually, there’s so much paper money in  circulation, it has become worth less (and maybe soon to be worthless?)

If you too are an honest, hard-working member of society, then why should we subsidise the fuel bills of others?  Or is life enough of a struggle just looking after yourself and the ones you love, rather than worrying about people who should be taking more responsibility for their own lives?

Did the 1980s and 1990s really happen or were they just a dream?  Coming back to the UK after a 3 year absence, there’s no doubt that the UK is fast rediscovering 1970s socialism with a venegeance.  What’s really weird about it is that no-one seems to remember how everything got destroyed back then, with industries going bust, a 3 day working week and rubbish left uncollected on the streets.  Well, if you doubt what I’m saying, I urge you to watch the news, preferably the British Brainwashing Corporation’s effort.  Prepare to be subjected to debates on whether the dastardly utility and oil companies should be subjected to a windfall tax, whether higher earners should be subjected to higher tax rates, and pictures of harrowed homeowners struggling to pay the mortgage and fuel bills. We seem to be conveniently forgetting that much of this was caused by the government-induced credit boom of the past twelve years, along with a willingness of many to treat their homes as ATM machines, where extra cash was drawn out as illusory house price increases occured.  All in all, ”burning the furniture to keep warm”, and I credit the sage of Omaha, Warren Buffett, with that last apt phrase.

Unlike the 1990s, when wealth and self-determination were in fashion, things don’t look so good and people are happy to believe whatever the government and media point to as the cause of our distress.  The Rich, the corporations and immigrants are all ones I’ve heard recently.  There are probably others yet come.

So, if you’ve got any sense, you’ll see where we’re headed – like the 90% tax rate in the 1970s which just drove the richest abroad and meant the UK receiving 0% tax from them, or the UK corporations who’ve already rebased to Ireland and the like, meaning 0% tax off them either.  Globalisation actually means less opportunities to tax people excessively than once upon a time.

And now we come to another major difference between the 1970s and now, which is that this time round, Britains balance of payments and capacity to produce enough food for consumption or goods for export (such as oil), are much less than they were back then, as we spent up the remainder of our residual capital left over from the days of empire.

Lets look at this positively.  If somethings bad, then it takes a crisis to sort it out.  In this case, will things get so bad there’ll be no money left to pay our paper promises to the legions of welfare claimants?  I wonder…

 

My previous article on the desperate move by the Government to prop up the ailing UK housing market reminded me of one of the unfairest taxation rules in existence in the UK, and one which, when you start thinking about it, helps explain the tragic loss of so many of our superior quality Victorian and Edwardian housing stock.

Quite simply, it is this.  Buy a brand new house in the UK and you don’t have to pay any VAT.  Buy an old house in the UK and spend a load of cash restoring it to its former glory and you’ll have to pay VAT on all materials and labour.  Ironic really, considering the much-reduced greenhouse emissions from restoration of existing housing stock.  And before any environmentalists out there start waffling on about energy-efficient new homes, then I’d remind them that the environmental costs of producing tons of bricks, timber and other materials, and transporting them huge distances to the build sites do not tend to be considered.

Anyhow, unlike many, my view is that if VAT is to exist, then as much as I hate it, I’d prefer to see the same rates of VAT added to the price of new homes to remove this distortion and thus allow clear decision making rather than decision making made upon the basis of taxation issues.

so here’s an idea, if the housebuilders all start going bust, then why not introduce this VAT when there are hardly any new houses being sold?  After all, they missed their chance during the fake credit boom paper money years of the late 90s and early nothings.

What do you think?   Should housebuilding companies enjoy this advantage in a supposedly “free” market?  Is political influence being used to maintain this unfair status quo?

In a normal world, where people are responsible for their own actions, you might expect someone who buys a house they cannot afford to live in to be forced to sell that house and find somewhere more affordable and compatible with their financial circumstances.  However, today the indebted-UK government decided to “invest” huge chunks of our money in propping up the ailing housing market.

No word describes the decision to declare a “stamp duty holiday” on all homes selling up to £175,000, along with a load of measures for interest-free loans and shared equity schemes better than “desperate”.  Instead of allowing the free market to determine people’s actions, we are now faced with yet more decisions driven by government-attempted manipulation of the market, all underwritten by us, the normal taxpayers out there.

Unsurprisingly, housebuilders shares all rose dramatically on the announcement.  and why not considering they’ll be ones producing homes for all these “key workers” and taking advantage of the interest-free loans.  Also amazing to consider that the government is encouraging yet more people on low to average incomes to fall even deeper into debt, at a time when commodities and interest rates have both probably got further to rise. 

Of course, you can easily see it as bad news for any houses for sale at prices between £176,000 and, say, £210,000, because any prospective buyers will be very unwilling to pay more and fall into the stamp duty bracket.

A cynic might argue that the best Labour are hoping for is to delay the inevitable until Golden Gordon wins the next election.  Ha ha.

One final question…The government rakes in £500m a year from stamp duty, so where is the tax shortfall going to come from…ah us, I thought so…

Second event occured some years later when after a pleasant weekend away with my partner and our two children, we returned to find our house cleaned out, and I mean cleaned out, they had stolen everything we owned, and that even included some of the furniture.  I must thank our neighbours for helping give my family somewhere warm to stay while I waited two hours for the police to arrive.

When they finally came, their primary objective was to fill in the details on a form for insurance purposes.  While I was of course keen to ensure our losses were recorded, I also kept telling her about the used cigarette ends on the floor.  She seemed convinced I must have dragged them in on my shoes, even though none of us smokes and they were dry, complete with ash.  Anyhow, she finally agreed a forensics person would come out following morning.  Next morning, I waited until midday, faced constantly with the losses we had experienced while my family stayed in a local hotel.   I rang the police up, only to be told that “…maybe you should clean up and get on with your lives, maybe you should move on…”  Amazing, I thought, do they want to catch criminals or not?

Well, a forensics “expert” finally arrived, and bagged up the cigarette ends.  She also took fingerprints and disappeared.  I heard no more, until a year later when the police knocked at the door of our new home (we couldn’t wait to get away from the old house after that).  What could it be?  Has someone had an accident?  No, it was explained that I may be required as a witness at a court case the following day in Hove.  Following day, I called the number I had been given and got through to some policewoman I forget the name of, who explained the cigarette ends had found a forensic match, yep, she seemed just as surprised as anyone else at that, and that the case was starting again, but they didn’t think I would be required.  A few days later she phoned again and explained the case had ended with a hung jury.

The case resumed some months later, although this time I had to go through the awful experience of driving all the way to Brighton, and being discredited by his lawyer in the witness box.  I don’t necessarily mean he was awful, simply that he was keen to press home the fact of how I could remember all the facts a year after the event, which I guess is a common tactic if cases take this long to be resolved.  The final nail in the coffin came when the police admitted the cigarette end evidence had become damaged during storage and thus, a hung jury once again and BB was free to go.  The police were very apologetic afterwards, and the forensic expert unhelpfully told me that she photographs every single crime scene from now on, before picking the evidence up.  Interestingly, the police also told me the defence lawyer hated the defendant himself, and was fairly convinced of his guilt.

So, two cases so far where the police let me down.  I’ll bet I’m not alone out there with my experiences.  There must be a lot of bodged cases, taxing us all in terms of time and money.  Do the Police still do a good job?  Or have they lost sight of their original motto, to “protect and serve” the general public?  You can probably guess where I stand in the equation.  If the police force was abolished, 95% of us would carry on in the same law-abiding way as we did before, and be free to form vigilante groups or hire hitmen to deal with the 5% who don’t.

Next time, I’ll let you know how, as a pedestrian in a dangerous driving charge, I ended up being arrested myself…

I was brought up to believe in the British Police and to trust in them when it came to personal safety and justice.

However, several events throughout my adult life have come to bring me to believe strongly that the police force no longer exists for hard-working, basically honest people like you and I.

Firstly, at the age of 21, I visited my home town of Consett and see my friends for the weekend.  Off we went for a night out into Consett town centre, with every intention of a happy night out before returning to various locations throughout the UK (in my case London).  Anyhow, later that evening, I had the misfortune to be waiting at the bar of “The Works” in Consett, and bump into Jeff P.  Well, I don’t even remember if I bumped him or not, but he turned around, grabbed my head and nutted me full-on, the only thing saving me from further damage being the prescence of my friends – especially Kev, to whom I’m eternally grateful.  With blood pouring, it was straight off down to the local hospital to get stitched up.

Next morning, still naively trusting in justice, and against the advice of others, I called the police.  They came out and were sympathetic, taking my statement and some photos of the damage.  They also explained that apparently this guy was a bouncer, WORKING at the club that very night, and that furthermore his brother had been arrested for drug-dealing earlier that night, which could have gone some way to explaining his aggressive mood.  Last they told me, he had been arrested and then released without charge.  How nice.

I later learned that some years later the guy attempted suicide.  Sadly he was not successful…

Ironically, I just added an old neighbour as a friend on facebook and I see he’s amongst his list of friends.  As well as proving that sadly he’s not dead, it also proves you’re only ever a few acquaintances from anybody in the world, doesn’t it?

 

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