And do you know the bit they’ve forgotten?

I think this is true at least.

They show that some portion of current savings is in gilts.

OK.

They show that there’s new money that is tax incentivised savings.

OK.

So, the Green New Deal can be financed by redirecting current savings.

Umm, who buys the gilts if not the current private sector investors who are now directed to the Green New Deal?

6 thoughts on “And do you know the bit they’ve forgotten?”

  1. “In addition, if pension rules were changed so that in exchange for the tax relief given on these contributions, which costs £54 billion a year at present, 25 per cent of all contributions had to be invested in Green New Deal related bonds then more than £25 billion could come into the Green New Deal programme from this source as well.”

    Encouraged by tax incentives and the prospect of growth, over the past few decades some people have saved a pretty penny in their retirement accounts. There are now all sorts of politicians circling around these convinced that they could find better uses for that money than fund your retirement.

    You can reasonably expect that people with good amounts saved to be vilified ferociously if these pols don’t get a bigger cut.

  2. There’s stupidity like this in the U.S., where municipal bonds are tax-exempt for no good reason whatsoever.

  3. Dennis, CPA to the Gods

    There’s stupidity like this in the U.S., where municipal bonds are tax-exempt for no good reason whatsoever.

    If memory serves, the reason munis were exempted was at the time the federal income tax was passed there were serious doubts as to whether a federal tax on munis would be considered constitutional (and state and local governments had made it clear to Congress that they would litigate it right to the Supreme Court). While that concern no longer exists, the reality remains the same… there would be tremendous resistance from all levels of state and local government (as well as a large number of individual and institutional investors) to removing the exemption.

    Nothing particularly stupid about it, then or now.

  4. This briefing was written by Richard Murphy and Colin Hines and published by
    Finance for the Future LLP, 33 Kingsley Walk, Ely, Cambridgeshire, CB6 3BZ.

    Yet another tax avoidance vehicle registered at that unimpressive end terrace. Won’t be long before it starts to look like a Fenland version of Ugland House, Cayman Islands

  5. bloke in spain – unless of course business taxes are not payable.
    In which case to show he is moral he should pay them anyway.

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