As Darren say’s yes very strange world.
Strange when the people who caused this financial mess are still getting their large bonuses.
Strange when the FT Index; the banks casino arm; is going through the roof.
Strange when the Government are reducing the tax millionaires pay; not a great saving but principle.
Strange when you think we the tax payers got them out of the s**t and the way to repay us?------- Well enough said.
It is pointless without me giving a way out of this problem; it’s not rocket science. Everyone says we need growth to get out of the financial mess. You only get growth by businesses making money. This means people spending money so the answer is give people the money.
The banks will not so £2,000 should be given to everybody above the age of 16 who earns below £60,000 per year via tax rebate. They will spend the money on bills, rent/mortgage, consumer goods etc. making profit for businesses and thus creating growth.
It is pointless giving large tax breaks to millionaires. They will spend the money in Monte Carlo or in a third or fourth property in sunnier climes.
This would cost 40-60 billion pounds but it should be remembered that the Bank of England (BoE) has made £375 billion in Quantative Easing (QE) so far that the banks were supposed to lend to business receive to create growth. Also business would not have to pay interest on the money.
Yes a few will waste the money on drink; cigarettes but this will still be creating growth. Others could afford to put the money in a savings account but this is only doing what the BoE are doing with QE
In Europe 11 of the 27 member nations have been given the green light to start a Robin Hood Tax; unfortunately our Government said NO. A less than half 1p in the pound tax on every transaction involving bonds, derivatives etc. (i.e.: not in your high street bank) would raise £100 billion per year (see http://robinhoodtax.org/)
While we have a Chancellor who equates the country’s budget with that of a household budget saying “in times of austerity we must cut back on our spending” we will have a long, bleak future.
The answer to any bank that wants to move to, say, Hong Kong is simple. If they move they will not be allowed to operate in this country. I’m sure you would get agreement on that in the EU.