Old Bastards Are Robbing The Young

The Intergenerational Foundation (IF) think tank has got itself in the news again. This taxpayer funded front for a bunch of unreconstructed Marxists not so long ago came up with a wizard plan to boot older people out of their homes, believing in typical neo – Stalinist fashion that what people do with privately owned property is in any way business of government bureaucracies.

Now they are wailing and gnashing teeth over how hard done by the younger generation are and how it’s all the fault of those greedy, selfish, wrinkly old gits who worked hard and bought their houses:

An IF press release announcing their latest report claims;
Younger people in the UK are losing out financially and politically to older generations.

The Intergenerational Fairness Index suggests the prospects of younger people have “nose-dived” since the start of the financial crisis in 2008.

The index uses official statistics to compare different generations’ stakes in key areas from income and employment to housing, pensions and education.

Co-author Angus Hanton said the plight of younger generations was clear.

“The index shows that poorer young people are financing richer old people as our society grapples with demographic change and increasing longevity.”

Utter and absolute bollocks. Everyone has suffered as a consequence of the economic difficulties. Many older people as well as young people lost work as a direct consequence of the 2008 economic crisis and the fallout from it and have seen their lives turned upside down.

It is not the fault of people who did not lose their jobs or whose businesses have continued to prosper.

Now would the person who recently tagged me a Tory because I am not a rabid Marxist like to defend this piece of neo Stalinist thinking. And if you try, be sure I will have the Oswaldtwistle Peoples’ Frond round to have you out of your house double quick.

Meanwhile, the Golden Orwell award to the Intergenerational Foundation. There is only one thing preventing these people proposing euthanasia as their next egalitarian idea for creating a socialist utopia.

They have already done it.

orwells54

Ignore The Media And The Left Squealing Like Stuck Pigs, Osborne Has Not Robbed Pensioners

Forget all the howling coming from left field, the mainstream media and the Liberal Democrat bit of the Coalition. In last week’s budget, Chancellor George Osborne did not impose a stealth tax on pensioners. What he has done is abolish an age related tax allowance for new pensioners. So anyone turning 65 and claiming their pension with get the standard allowance before paying tax of £9,200. The raised alowance of £10,500 will continue to apply to those already on pensions. Nobody living on a pension will be getting less than they are now.

Here is what one level headed commentator (in The Independent of all places) said:

Existing pensioners will still avoid paying tax on the first £10,500 of their income, rising to £10,600 for the over-75s, but those benefits will now be ­frozen until the basic personal allowance catches up.

Pensioners groups, it is said, responded with fury. But pensioners groups always respond with fury. If a chancellor gave pensioners an extra hundred pounds a week they would still furiously claim they are hard done by.

What everyone has overlooked here is that the budget raised the basic old age pension that we pay for through national insurance and should all be claiming if we are on pension age (my wife is over 60 and because we kept our tax and earnings separate she already gets her pension while I have a year to go. So I have done the numbers).

Pensioners who will be hit by the new tax will be paying “up to £322 a year more” but will be getting £275 more in their state pension Now that actually means people who get a state pension and an occupational pension, not the poorest pensioners scraping by of their basic state pension. And note that “up to”. A few new pensioners with good occupational pensions giving them income of around £18,000 a year will pay £47 a year extra in tax over what those who retired before the deadline will pay. Big deal. For many whose taxable income is only slightly above the income threshold the difference will be trivial.

Pensioners who only have the basic state pension will not be affected as their total taxable income does not exceed the tax free personal allowance nor will people who get disability allowances as those payments are not taxable. Meanwhile the government faces a mega crisis of debt that has been building since the first Labour government after World War 2. There are signs that problem is going to get a lot worse very soon.

Any chancellor of any party faces an almost impossible task in trying to stop us being Greeceified by an unnafordable welfare systeminst the efforts of a profligate public sector and keep the professional whiners like pensioners, public sector workers and the unions quiet.

Good luck to George Osborne with his tightrope walking career. He may not be anywhere near the best Chancellor we have had but if Labour were in power, buying votes with borowed money while throwing tax revenues into the pockets of their very very rich supporters things would be a whole lot worse.

RERLATED POSTS:
Osborne’s War On Pies
The Age Timebomb

Want to know what happened to your pension?

Iain Dale’s Bog, in a post titled The Truth About Pensions commented on the theft by a Labour chancellor from the pension funds of ordinary punters like us and how it will harm the fabric of society in future. Visit Iain’s blog but if you don’t fancy reading the report of William Hague’s speech just look at the third comment down the list. It is from “voyager” (no url provided) and tells, quite believably, that the situation with pensions is not just worse than right wingers like Iain Dale and William Hague thought, but worse than the worst worst – case scenario dreamed up by those dangerous lefties at The Guardian and The BBC.

Here’s an extract:

By taking the dividend tax credit he reduced funds reinvested in the Stock Market thus lowering share prices.

The low share prices made British companies cheap for Spanish, German, French acquirors and Private Equity.

The Insurance Companies could raise cash by selling shares to Private Equity Funds they were funding themselves, and thus get two bites at the cherry.

The use of PFI has reduced Gilts yields which makes annuity rates very low for people forced to buy them by age 75.

Thus instead of issuing Gilts to prop up Pension Funds and Annuities Brown has sucked capital out of Pension Funds and forced them to look for Private Equity deals or PFI to compensate for low-rating on Equities and shortage of Gilts.

Using CMOs as a substitute for Gilts is dangerous as defaults increase from an over-priced property market as investors seek alternatives to Equities.

To add to this disaster, local authority pension funds are invested in equities so the shortfall has led to increases in Council Taxes

The other gem is that there are fewer and fewer companies in the FTSE, fewer blue-chips to invest in – compare the FT Index now compared to 1990 and the number of Industrials that have gone

After that it just got too horrific for a family website like this. Voyager obviously knows his stuff and I wonder is the anonymity masking a city trader.

Follow Little Nicky from now on because not only have we declared war on Labour, Cameron’s recent antics have made it open season on the Tories too. Its going to be fun folks.

Will You Be Mugged By The Labour Thieves?

The Government’s latest plan makeS euthenasia look like a good option for the approaching 70s even if they are healthy.
Were you ever tempted to think what nice caring people those New Labour robots were, the way they exhorted us to abandon our bad habits and save our spare cash for a comfortable retirement or so that we could leave a tidy sum to our surviving perners or descendants..
You poor deluded fools.
This LABOUR Government have already decimated many modest pension funds accumulated by hard working people and they plan to tax us every time we leave home. Now they are planning to tax us on living once we get too old to work, whether we are fit enough to go out for a drive or not.
Under Labour’s latest daylight robbery wheeze, inheritance tax will be 44% as it is now, but the residual amount in the pension fund at death will be taxed, starting at a rate of 70%.
So that’s 44% of everything and 70% of whats left in your pension fund. Not what is left after the taxman takes his 44% of the estate but 70% of the total value of the pension fund.
And that is the cheapest possibility, some types of pension will will be taxed more highly.
This could leave the descendants of many modestly rich people owing more in tax that they will actually inherit.
The only people to escape will be those who do not have a penny to scratch their arse with and of course Labour’s bestest buddies The Very Very Super Dooper Rich who can afford to stash their money in offshore trusts that cannot be taxed.

Oh well, goodbye savings. Open another bottle of wine and pass the fags.

READ THE FULL STORY

How Do Civil Servants Earn Their Salary?

Iain Dale yesterday brought us this intriguing item, a Parliamentary Question from David Ruffley.

David Ruffley: To ask the Secretary of State for Work and Pensions how much the Minister for Employment and Welfare Reform’s blog has cost to administer in each month since its inception; what the budget for the blog is for 2007-08; and how many unique visitors to the blog there have been since May.

Jim Murphy: The Welfare Reform and Child Poverty blog was launched on the DWP internet site on 16 October 2006. Costs to develop and administer the blog were met from existing resources, and current staffing levels. Ongoing maintenance equates to half the time of one member of staff. From October to date this has cost £1,487 per month.At present no funding decisions have been made about the financial year 2007-08.Since it was launched it has attracted 1,987 unique visitors resulting in 4,731 hits

Iain commented:

Now, if this blog has been up for three months, and is costing £1,487 per month, this means that the blog is costing over £2 per visitor. And the subject of the blog… Child Poverty! As Mr Littlejohn would say, ‘you couldn’t make it up’. If you look at the blog, in the last months, there have been just 4 posts (which read like press releases…). And they are paying half a member of staff to maintain it ?

I cannot add anything to Iain Dale’s comment except to say its nice from an ego polishing pov to know that a government funded and maintained website dealing with a very important topic gets as many hits in three months as Boggart Blog gets in a week but as a taxpayer it makes me puke.

Big Gordy’s Plans For Poor Pensioners

Gordon Brown has many times promised action to deal with the pensions time bomb. People assume this means he will do something to relive the plight of hard up pensioners whose retirement funds were decimated by the Governments plundering of their pension schemes. It is always dangerous to jump to conclusions.
On the back of Brown’s latest blether about the poor pensioners comes a revelation that the Polonium Chancellor is planning another raid on pensions funds to help cover up the hole in the economy his crooked figures can no longer hide and to ensue funds are available to cover the bungs, graft and payola promised to CEOs of Private Finance Initiative partners.
So how can big Gordy lie with a straight face about his plans to end pensioner poverty. Unless of course upping the payouts is not what he has in mind. Given the fascist tendencies of New Labour anything is possible but what we suspect is a so very Machiavellian even Little Nicky Machiavelli is shocked. Have you noticed those big, grey, windowless boxes going up on the outskirts of towns, the ones with sinister looking flues next to them?
Could the be the “shower blocks” of new leisure centres for the elderly and poor?

It would certainly solve the problem and even taking into account recent hikes in the price of gas, the cost is hardly a consideration.

(If you are thinking Little Nicky is being rather hard on the Prime Malefactor in waiting, I believe this man has sold his soul to the demon of Blair’s legacy, so great is his ambition. There is not a milligram of moral fibre or a sliver of socialist principle visible in any of his speeches or essays.)