The "coalition cuts" megathread

[Wildcat]

I repeat what subsidy was paid to the pension funds?

 

The tax relief on dividends from equity investments that Gordon Brown scrapped because they were distorting the market and acting as a disincentive to investment.

[Tony]

That isn't a subsidy, it is tax relief.

[andyofborg]

That isn't a subsidy, it is tax relief.

 

its effectively a subsidy

[Tony]

It isn't a subsidy, it is tax relief.

 

You're not Gordon Brown are you?

[andyofborg]

It isn't a subsidy, it is tax relief.

 

You're not Gordon Brown are you?

 

money which should go to the government doesn't.

 

which is just the same as the government taking the money and giving it back

 

its essentially a subsidy

[Tony]

It should't go to the government, it is tax relief.

 

You ARE Gordon Brown. I claim my £100.

[Wildcat]

It should't go to the government, it is tax relief.

 

You ARE Gordon Brown. I claim my £100.

 

Why shouldn't there be a tax on dividends from equity investments? They incentivise reinvestment, and take a cut from the income of shareholders providing a balanced taxation system.

 

Tax relief, are subsidies. They are a Govt. system to reduce the burden of taxation in targeted areas. Subsidies don't have to be a direct input of money they can also take the form of tax relief.

[Tony]

I have no position on it but the facts remain that it is not a subsidy, it is tax relief.

 

That kind of financial illiteracy is exactly what's got us into the brown stuff.

[Wildcat]

I have no position on it but the facts remain that it is not a subsidy, it is tax relief.

 

That kind of financial illiteracy is exactly what's got us into the brown stuff.

 

Free Dictionary cites tax relief as an example of the proper usage of word subsidy:

 

THERE are two pensions scandals in Britain. The first is the £10bn-a-year tax relief which subsidises gold-plated retirement packages for the richest 1%.

 

The second is that nearly two-thirds of people working for private firms do not get a penny from their bosses to help them in old age.

 

Public sector pensions aren't a third scandal. Total tax relief on pensions is £37.6bn yet a nasty campaign is running against the final salary schemes of public servants retiring mostly on less than £5,000.

 

The £4bn unfunded cost of pensions for millions of retired nurses, teachers and civil servants is equal to £1 for every £2.50 pocketed by the elite earning £150,000 upwards. Envy is a powerful political force but needs to be directed against deserving targets.

 

From link on this page:

http://www.thefreedictionary.com/subsidises

[Tony]

I don't care what an internet dictionary says. Is that where Gordon's been getting his advice from all these years? Budgets by Wikipedia?

 

This is rather off topic to be honest. Maybe we can get back on track?

 

There are gentle murmurings from Labour benches that the Queens Speech was rather good.