Death Tax

by The Good Life on March 31, 2010

in Uncategorized

So it gets better and better. After completely sidestepping his most important job of the year, the Budget, the Chancellor of the UK, Alistair Darling, who you may remember, opted against making any tough decisions this year, and instead of cutting public spending, decided on penalising drinkers, smokers, drivers oh and of course anyone silly enough to try and make good of themselves and earn over 150,000 a year and leave the tough decisions until after the election.
Then this week during the live TV debate he spoke about the death tax.
I mean come on. Instead of cutting some of the public sector middle managers who just slow the whole country down, or get to the route of the problem with all the people on benefits he has decided that it might be a good idea to tax people when they die now.
So lets think about this. Are you sitting comfortably.
So you get a job, and you pay tax for a few years.
You then decide to start your own company. Its risky, but you do it and make a big succes of it, and even employ some people, which is good for the community and the country as a whole. So you have to pay a lot of tax from your company each year on all the profit you make, oh and you have to pay national insurance (which is going up ASWELL) for all your employees. National Insurance is fast becoming known as Job Tax.
So you run your company succesfully, and pay tax on earnings for the life of the company and then guess what? A bigger company wants to buy you out! So you sell! As your business is pretty succesful, you make a lot of money of it. And guess what you have to pay tax on the sale of the business.
So now you can retire right?
Well yes, but if you need extra care in your eldery days, you will have to pay for it yourself, whilst guess what the people who cant pay for it, dont have to. So remember my last outbursts, basically the lazier you are the better you get looked after by the state.
So you pay for the care no problem, and you think you better make plans for your loved ones, so they can get their inheritance, from the money which you sold your company for.
But guess what??? Your right. Inheritance tax comes along! That takes another 40% from the original you got for your business.
So for example. You sell your business for 100 pound. You get taxed 40% capital gains when you sell. So your left with 60 pound. Then you want your family to get some inheritance but they pay 40% inheritance tax, which leaves them with £36 from your initial £100.
So now they are talking that from your measly pot, you will get taxed on whats left to pay for elderly care. Looking after the eldery is definitely a good thing, and I have worked in that industry for a few years and so do support it, but again the Labour government say “it will only be for those who can afford it” which basically is attacking the well off and hardworking.

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