Sunday, May 27, 2007

Inheritance Tax

A little while ago, I signed a Number 10 Petition to abolish Inheritance Tax. This pernicious, distressing and shitty tax causes immense amounts of heartache; a friend of mine, for instance, is unable to move on with her life—nearly two fucking years after the tragic death of her partner—as the Inland Revenue have still not got around to working out how much she owes in IHT.

There has now been a reply (in the negative, naturally).
The £4 billion raised from Inheritance Tax is equivalent, for example, to an increase of over 18p on petrol duty.

Or, to put it another way, about 0.5% of the government's projected spending for this year. Or, to put it yet another way, about £0.75 billion less that VAT fraud cost in 2005–2006. Or about 4% of what the EU costs us every year in lost opportunity costs...

13 comments:

Mark Wadsworth said...

IHT is a shit tax, and will be rolled into site-only Land Value Tax, together with the other shit taxes like Council Tax/Benefit, Capital Gains Tax and Stamp Duty Land Tax. And possibly the TV licence as well.

Anonymous said...

Shows how important a set of reponses on DK are. I didn't think anyone was reading.

Thanks for trying DK. I guess you can see now that people holding some measure of authority - editors, police officers, judges - can find it is very easy to take at face value what a doctor says, only to find out later that they have been given only a certain selection of facts, which puts a different complexion on a story.

As it takes a while to do considered vituperative responses, can you just say if it is worth me doing it again? Editor's decision is final and all that, but I did think I had made some valuable if uncomfortable points which needed public airing about the underlying structure of the GMC.

Devil's Kitchen said...

Seriously, have you not got a messageboard to whine about this on? I don't hold any brief for either of these groups and, in the name of fuck, stop pursuing your personal vendettas over here.

If you want a right of reply, set up your own blog. Don't pollute The Kitchen with your childish vendettas.

Carrying on these comments, after I have purposely shut down comments on the original post, on an article that has nothing to do with your argument is the height of bad manners.

Now, I don't want to have to switch back to Haloscan comments in order to IP ban the lot of you, but if I have to, I will.

In the meantime, I'll look into all of this and see what I think about it.

DK

Elliott said...

There's another point to bear in mind when costing tax cuts: you never, ever lose as much revenue overall as you booked when you were collecting the tax.

This is because the tax itself requires resources to assess and collect, which you can either save or reinvest in enforcing other parts of the tax system.

The smaller and loopier the tax, the more magnified the effect. (Such a shame nobody seems to be proposing tax cuts these days - wonderful things.)

Mark Wadsworth said...

Elliott, that's why we should replace 5 stupid taxes with one clever (and difficult to avoid)one.

And yes, some people'd pay more in LVT than in Council Tax/TV licence fee (most would pay the same or a bit less) but then these people ought to vote UKIP, who'd increase personal allowance to £10k and have a flat tax of 31% (incl. Employer's NI).

And pensioners could roll up interest free until they die.

AntiCitizenOne said...

Mark Wadsworth

No fucking way should entertainment be funded by extortion.

Take you license fee and shove it up your arse.

At least I can avoid paying the despicable 'B'BC with the current idiotic system.

verity said...

As Mr Micawber illustrated, living beyond one's means is a major cause of misery. Governments should be forced to slash their expenditures by ceasing all transfers, with the exception of pensions which people have been strong-armed into paying into. They should get out of the charity business, the education business, the health business, the transport business and every other business that is better handled by clever, dynamic entrepreneurial minds than by parasites.

The only causes we should be raising taxes for are the protection of our borders (listenin',Tony?) and our military. Everything else can be better run by the private sector.

Mark Wadsworth said...

Anticitizenone, privatising the BBC is a perfectly viable Plan B.

verity said...

While we're at it, there are far too many MPs. And get rid of fake "peers" and bring back the hereditaries, who did the job.

verity said...

Mark Wadsworth, why bother?

You'd never get rid of the toxic slime lining the corridors and infesting the furniture. Why not just have a free-for-all and let the market decide who survives? The BBC is too embedded in Stalinesque corruption.

Mark Wadsworth said...

Verity, in politics one treads gently, phrases like "toxic slime lining the corridors" are hardly going to ensure that Our NigeL gets to shove his oar in every now and then.

verity said...

OK. Point taken. I won't make any more comments about the BBC on this blog. But I'm not going to shut up elsewhere.

Inheritance Tax Saver said...

I hear all the comments and totally agree that Inheritance Tax is a bad tax, but the sad reality is that it exists. There are ways to plan to avoid IHT, but it requires prior planning. Why give your hard earned money, that has alreday been taxed several times during your life, to a Government that only knows how to spend your money.