I set out four solutions.
First, interest rates on national debt must come down; they are too high.
Second, unearned income from interest and government bonds needs to be taxed more heavily, not less than earnings from work.
Third, we need more progressive tax systems worldwide.
And fourth, the ownership of this wealth needs to be democratised, brought back under public control as it was during quantitative easing.
We’re going to pay you less, tax what we pay you more, tax it all more again and then nick it from you anyway.
This will have people lining up to buy gilts, right?
Eh?
Gamecock can translate: “Kill the rich and take their stuff.”
It will be okay because we use the word ‘democratised.’
By dedicating 2 hours daily to this online job, I brought in $16,453 last month. It’s incredibly simple to start and doesn’t require any specific skills, making it perfect for anyone. For a student like me, this has been the ultimate solution to balancing my studies and finances…
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Money printer go brr, and the result is hosed out to everyone.
Everyone gets an extra $100,000, no questions asked
Someone with $50,000 triples the number of dollars he has.
Someone with $1 million only sees a 10% increase.
This is their “democratization”. Of course this means that dollars buy a whole lot less goods and services, but that’s next month’s problem.
There really is no need to worry about making gilts attractive to buyers. It really is quite simple, as A Burnham explained: “We’ve got to get beyond this thing of being in hock to the bond markets.”
Murphy has long since got beyond that thing, and is now light years over the horizon.
So you run an economic model dependent on borrowing shitloads of money, whilst claiming you have to get beyond this thing of being in hock to the bond markets? How does that work?
You make A Burnham Prime Minister. And presumably R Murphy Chief Economic Advisor.
Edit: I really shouldn’t try doing online sarcasm. I’m bad enough at articulating it in real life.
I think you mean Lord Murphy of Ely (or maybe PubWatch). Gotta get that vermine don’t ya know. Plus the daily allowance, since YouTube revenues are running dry.
A season ticket Ely to TFL Zone 1 is nearly £11k (1st class, naturally) for a year, so he would need to spend many, many days annoying the rest of the HoL to make a living at it.
Sorry Tractor Gent, he’d get that as well:
https://electoral-reform.org.uk/how-do-house-of-lords-expenses-work/
If interest rates are forced down by Spudonomics, then existing gilt capital values must rise. Possibly quite considerably, depending on how far rates fall. All of which is tax free, no CGT to pay. And of course many are held by overseas entities and individuals, so even if the UK imposes CGT on gilts, foreigners wouldn’t pay that. Then if the BoE then buys up loads of gilts in the market place it will have to pay over par for many of the longer dated ones, resulting in a capital loss when they are held to maturity. This presumably will have to be funded by the taxpayer. The whole scheme seems like a massive transfer of value from the UK taxpayer to the private sector, especially abroad.
If he lived in reality he’d care about all this.
. . . in search of a problem.
Is there a dial for this in Rachel’s office?
If you want more saving, tax it more. Wait . . . what?
Sorry, Mate, you ain’t getting my wealth.
More progressive in what way? Variable VAT? He dreams of killing incentives to succeed. He longs for a gray, dystopian world. Where everyone is equally miserable. Except him.
Then it wouldn’t be wealth anymore. Indeed, commie dick Murphy’s goal is the destruction of wealth. He pretends to care about the little people to get their vote. Then he will starve them.
The Soviets worked out the system he thinks he wants. If you’re part of the nomenklatura then you don’t necessarily get more money, but all the things you want are really cheap or otherwise subsidized, or are only available to members.
So most people, who e.g. like football, can’t get into the matches because the ticket prices are high. While ballet, which the nomenklatura likes, are massively subsidized, so the tickets are cheap.
Actual good things, are only available in the Party-only shops. While the general stores are empty, and people get paid (in kind) for standing in line for other people.
And when nobody wants to buy the new debt at the rates you’re offering? I’m assuming he’s not planning on running balanced budgets, after all.
He’s planning to force people to “invest” at near zero interest rates in whatever he thinks they should.
That is slightly better than killing you and taking your stuff.
Murphy’s got a list with only four things on it?
It must be that post-covid fatigue again.
The only thing that *needs* to happen is for presumptuous and arrogant pricks to stop telling everyone else what they “need” or “must” do.
Isn’t “unearned income” presumably primarily interest and dividends, already taxed as personal income ? If not, I strongly recommend an imputation system, such as NZ has. All dividends come with a tax imputation credit to the extent that the company pays tax.That credit reduces ones individual taxes but the income is taxed at your full marginal rate.This simplifies tax calculations and also punctures a dirty big hole in all tax minimisation schemes employed by companies – what is the point of paying less tax as a company if that simply means more tax on shareholder returns. Example if you need one, I get a $1000 cash dividend and the company has paid a 33% tax on profits, so I get a $333 imputation credit. The dividend is taxed at my marginal rate of 33%, so I have to pay tax of $333 on the $1000, and I utilise the imputation credit to precisely that, so retain the $1000 dividend/ Income is thus taxed only once and where tax should be levied, at the individual level. Company tax becomes a form of withholding tax system.
Just FWIW
Near all systems do something like that. Either pay dividends out of untaxed profits, then charge normal income tax. Or some system of stampoed dividends whihc, having paid corp tax, then pay lower tax. UK has 3.76 to 39% divvie tax rates for example…..
Thanks, Ed. I used to run a cost accounting system for a major corporation. I had forgotten the crazy shit I had to deal with. Retired in 2009. I’ve now been headache free for 16.45 years.
“interest rates on national debt must come down; they are too high”
It’s just as well no one serious takes him seriously. If they did, that statement alone would have knocked 10% of bond prices.