S: I just wanted to put fings right Alf.
I knows you said that me and everyone else is going to ave to pay more. I saw em say it on the news as well.
It seems unfair Alf.
It seems unfair on me, and you and everybody else.
Most of all it seems very unfair on all the young uns.
What motivation will there be if nearly all their hard earned dosh is paid in taxes of some kind or another?
It just ain’t right!
A: I knows it ain’t bleedin right, that’s what I tells ya. But I also got to finking about it some more.
Boris and his mate Sunak also says that shareholders will ave to pay an extra 1.25% on income taken as dividends. Nows I know that you don’t know what that means in that way so’s I’m gonna explain it different.
Some people aves investments – theys buy shares and ave share portfolios an that. Now, just fink for a moment if that was you.
You’d buy into things that you think are gonna make money, wounldn’t ya?
S: Yeah, I would. I would buy Amazon shares or Tesla or something like gas or electric shares.
A: Yes, you would. Nows some, lets call em investors, buy shares for the income they will give. So theys always looking for shares that have a good payment history. Stable and always paying and the like.
Nows the governments saying that if they’re a basic rate taxpayer and they take income that way they’ll ave to pay an extra 1.25%, so’s at the moment theys paying 7.5% and from April 2022 they’ll have to pay 8.75%.
Higher earners will have to pay 33.75%.
So’s you see it’s not just a tax on workers but also those taking income via investing.
S: That makes it right then does it?
A: No. I ain’t saying that cos the shrewd ones will just leave money invested and reinvest any dividends and not take income cos they more an likely got enough income from other places anyhow.
And you know I said about tax shelters – well any eld within an ISAs won’t be liable for it.
As such the burden falls mainly on the workers and especially the young as theys gonna be paying it for years and years to come.
S:So what can we all do about it?
A: I’m tryin really ard here not to swear. I got complaints about my using the f word and c word too much – but you push me too bleedin far.
As I said there’s nuffin you or anybody else can do about it. It’s done!
And I also got to reckoning that there’s no other option.
Old people got to be looked after and fed and washed. It ain’t their fault if they lose capacity mentally an physically, so’s it’s unfair that in some instances all their ard earned money goes on paying for it.
It’s unfair that the burden of paying for it falls on the younger generations whether that’s directly from the relatives of the old uns or generally across the population.
But I ain’t getting into intergenerational pension warfare ere.
S: Wot I dont understands Alf is that surely the money could come from the wealthier people – I mean why not just tax investments higher or somefin like that.
A: My reckoning with that is that the government knows full well wot a ‘shit show’ we’re in.
They’ve created huge asset bubbles
by printing money for years an years as well as keeping interest rates rock bottom
However, maybes they knows that’s all gonna unfold and all the prices are going crashing down.
As such what will be the point in trying to tax money on profits/returns that might not be there.
Much easier to tax the young uns and all other workers – cos they never have much to say and as long as they can keep em working they can rip the tax out of em