Tax Allowance Increase Paid By Super Tax

Tax Allowance Increase Paid By Super Tax.

Liberal Leader and Deputy Prime Minister, Nick Clegg, has a made a call to increase the personal allowance at an even faster rate.  His suggestion,
which has received much media coverage both online and off, was originally made on BBC TV.

Mr Clegg suggested that the income tax personal allowance could be increased to £10,500 instead of the already budgeted for £10,000 in April 2014.  He
also suggested that the estimated cost to do this, at around £1bn, could be funded with higher taxes on the wealthy or as we like to call it a "Super
Tax".

Comment

It is already public knowledge that both the Liberals and Conservatives, are keen to raise the nil income tax personal allowance threshold to over
£12,000 if re-elected in 2015 and this must be paid for from somewhere.

We have long maintained that long term inflation is the only way for any Government, whether Red, Blue, Yellow or Green, to inflate its way out of
debt by devaluing that debt.   In short, we believe, this Government or any successive Government will have to cut spending but will still have to
stimulate the economy.   What easier way could there be than increasing the un taxed spendable income with large personal allowance for every average
worker in the UK but increasing taxes on the wealthy?

Super tax was introduced after the second World War to fund a bankrupt Britain.  We believe the UK will simply keep printing money to effectively
devalue the pound and make UK exports cheaper overseas, reduce benefits with austerity and increase taxes on the wealthy.  We suggest we are also prime
for an EU style ‘wealth tax’ on property, pensions, investments and money, much in the same way as Spain does, but we may also see a tax levy on
savings above £100,000, i.e. just what Cyprus did.   Do you remember Gordon Brown raided UK pension funds by removing the ability to reclaim the tax
credit on stock market investments inside pension funds?  In one stroke, a hidden wealth tax was created and £5bn per year saved.  More of this to come
we suspect.

We also do not think it will be long before the UK returns to a 1970’s style top income 'super tax' rate of 90%, a legacy from the 2nd World War, when we
really were bankrupt.  It started then at 99%, gradually reducing down to 90% through 50’s, 60's and 70's.