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  1. #1
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    Budget 2010: Tax has doubled under Labour

    One for all those tax exiles out there... better out than in.

    ###
    Budget 2010: Tax has doubled under Labour
    The Government's share of what we earn has nearly doubled in value since Labour came to power.

    By Ian Cowie
    Published: 6:50AM GMT 20 Mar 2010

    Despite long-forgotten promises not to raise income tax, the Government's share of what we earn has nearly doubled in value since Labour came to power, according to HM Revenue & Customs' statistics.
    These show that HMRC took 69bn out of salaries and pay packets in 1997, but expects to raise 134bn in 2010. National Insurance contributions (NICs) – a tax on income by another name – took less than 47bn out of pay 13 years ago, but will exceed 98bn in 2010, according to calculations by accountants Grant Thornton. Other taxes – such as stamp duty, council tax and capital gains tax (CGT) – have risen by even more.

    The Chancellor, Alistair Darling, points out that income tax revenues were boosted by rising employment and may have more to say along similar lines in his pre-election Budget next Wednesday. Here and now, accountants are advising clients to count their spoons and take advantage of tax shelters while they are still available.

    Chas Roy-Chowdhury, head of tax at the Association of Chartered Certified Accountants (ACCA), said: "The Budget will be all about jam today and pain tomorrow.

    "There are several tax rises in the pipeline, but I do not expect to see any significant rises being announced pre-election. I would be surprised if the Chancellor brought the 50pc rate of income tax in to affect incomes of 100,000 this side of an election. But after the election, if the current party in power is returned to office, then I think it is a runner."

    Last year, the Chancellor announced the new 50pc rate would apply to people earning more than 150,000 a year. Richard Mannion, of accountants Smith & Williamson, said: "Whichever party wins the election it looks as though further tax rises will be on the cards in the foreseeable future.

    "An increase in VAT to 20pc is most likely because that will produce a large sum of money quickly and that rate would still be in line with the other European countries.

    "The CGT flat rate of 18pc looks out of kilter compared to income tax rates and so is likely to increase, but CGT does not produce much tax and an increase won't do much to fill the economic bucket."

    Mike Warburton, of accountants Grant Thornton, said: "Even after recent falls in revenue, the taxman now takes almost twice as much as in 1997. Stamp duty, CGT and council tax have more than doubled.

    "It is surprising that duties have not done so – but don't be fooled. The motorist is paying heavily. It is duty on alcohol, tobacco and betting that have fallen behind inflation – arguably because this is what matters to many core Labour voters.

    "Despite all this, there are sensible tax-saving measures that can be taken. Pension funds still offer the most attractive way of saving tax-efficiently. Individual savings accounts [Isas] are a pale shadow of the personal equity plans [Peps] and tax-exempt special savings accounts [Tessas] that they replaced, but are still tax-efficient.

    "Venture capital trusts [VCTs] and the Enterprise Investment Scheme [EIS] have had a mixed performance, but can still make a good tax-efficient part of a portfolio and investments in a business or farm can still attract useful inheritance tax [IHT] relief.

    "The next few years are going to be tough, but we may as well protect ourselves as well as we can from the harsh reach of the taxman."

    Angela Beech, head of personal tax at accountants Blick Rothenberg, said: "Although there have been some leaks of no further tax rises by the Chancellor next week, the 50pc rate of income tax will be with us within a month and there must be a realistic prospect of swingeing cuts in services if he is to make any inroads into the country's serious debt."

    But George Bull, of accountants Baker Tilly, said: "The Chancellor is probably secretly hoping that taxpayers facing the 50pc top rate next year will take action to safeguard their position before the Budget, if not before the end of the tax year which, perhaps luckily, falls just 13 days later.

    "Even allowing for the fact that the tax becomes payable a year earlier than otherwise, a tax saving of 10pc or more is worth having. Why would he want people to avoid tax in this way? In a word, cash flow.

    People facing the prospect of the new additional rate who can bring forward income into 2009-10 will save themselves 10pc on non-dividend income, but that saving increases to 11.11pc on dividends because the effective rate of tax on a 50pc taxpayer's dividend will be 36.11pc."

    Accountants Smith & Williamson have measured the impact of all kinds of taxes on families at the request of The Daily Telegraph. They considered the effects of changes in taxation on a family with two fairly average incomes and on another family with two earners and one higher income.

    The calculations are set out in detail below. The 1997 figures have been lifted in line with the Retail Prices Index (RPI) to remove inflation from the comparison.

    The survey shows that for the family on average earnings the percentage of income paid in all forms of tax has increased from 32pc to 34pc – an increase of 6.25pc since 1997. However, for a taxpayer in receipt of tax credits, the net increase in total tax will be rather less.

    The family with higher income has seen their total tax payments increase from 33pc to 36pc over the period. Back in 1997 we still had the married couples' allowance and Miras (mortgage interest relief at source), albeit both were capped at modest amounts.

    The basic rate of income tax was 23pc compared with today's 20pc, so basic-rate taxpayers look as if they should be better off. However, the higher-rate threshold has not kept pace with the increase in average earnings over the period so far more earners are now paying the higher rate. This is the phenomenon known as fiscal drag.

    NICs are the ultimate stealth tax and have risen substantially over the period. In 1997 the top rate of employees' NICs was 10pc on earnings up to 24,180 a year and above that figure nothing was payable. The employer paid a top rate of 10pc with no upper threshold.

    Today, the employee must pay 11pc on earnings up to 43,888 a year and then 1pc on all additional earnings. The employer is now charged 12.8pc NICs for each individual's earnings in excess of 5,720 a year.

    An increase from 10pc to 11pc for an employee's NICs may not sound much but it amounts to an increase of 10pc. In the case of the employer, the rise is an eye-stretching 28pc. No wonder NICs are sometimes described as a ''tax on jobs''. Worse still, the Chancellor has already said that NICs rates must rise by another percentage point next year.

    Mr Mannion, of Smith & Williamson, said: "Many people may not consider local rates as a tax. However, local authorities are generally being asked to do more with less financial support from central government.

    "As a result, most of us have found that our council tax has gone up dramatically over the years. In other words, we are seeing an increase in local taxes, which are not compensated by a reduction in central taxes.

    "Our case study shows that the council tax for a typical house in Surrey has gone up by 68pc on a like-for-like basis over the period. And there are no easy ways of mitigating this particular tax, apart from moving to a less desirable property."

    Bob Rothenberg, senior partner at Blick Rothenberg, said: "The overall trend over the past 13 years has been a heavier tax burden for almost everyone. Not only has the amount of tax paid gone up, but the burden of compliance has increased and the tax legislation and complication has become almost impossible for the 'man on the Clapham omnibus' to either understand or handle.

    "It was not that long ago that a standard tax return was four pages or so. Now the number of pages is many times that number and with the online challenge as well, dealing with one's own tax affairs becomes more and more difficult. On top of this the Revenue has become more remote, and with their own pressures on staffing, less able to help taxpayers with their affairs while devoting more effort to inquiries."

    David Kilshaw, of accountants KPMG, said: "The next few days could well be hectic as people try to get ahead of whatever changes they suspect could be coming. It's important to remember paperwork is critical – often cheques have to be cleared, not just written to be effective for tax purposes.

    "This is especially true on CGT. Come April 6, there will be a big gap between the top rate of income tax at 50pc and the CGT rate at 18pc. There are strong arguments to leave the CGT rate as it stands and the Treasury is reported to not be considering a change at this time.

    ''None the less, quite a lot of people are playing it safe by selling assets ahead of the Budget," he said. MORE than 1.5 million pensioners are overpaying tax on their savings income, accountants Beever and Struthers claim.

    The accountants calculate that up to 9bn of tax is being overpaid each year by taxpayers as a whole, but say older people are at greater risk of overpaying. They blame complex forms and a widespread belief that income paid by bank and building society accounts is untaxed, when in most cases it has been taxed before savers receive it.

    If pensioners have been paying tax on their pension or savings income – other than dividends – during the past six years, they may be due a repayment of that tax.

    Anyone who thinks they, or family or friends, may be eligible for a refund should contact their local HM Revenue & Customs office without delay. After April 5, the number of years for which some people can claim repayments drops from five to four.

    There are transitional arrangements in place that will allow many pensioners to claim six years' repayments until 2012. However, to be certain of this, action should be taken now.

    Claire Kennedy, tax partner at Beever and Struthers, said: "The tax system is obviously very complex and HMRC can be difficult to deal with. Tax repayment claim forms can be hard to understand, but they're worth completing because if you have been paying tax for the past six years, you may be entitled to a repayment worth hundreds of pounds.''

    ###

    source: http://www.telegraph.co.uk/finance/p...er-Labour.html
    Last edited by CaptainNemo; 22-03-2010 at 06:45 PM. Reason: able

  2. #2
    Thailand Expat Jesus Jones's Avatar
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    Most of the dumb fucks in the UK just can't figure it out.

    The government one month increases fuel to say 5.50 for instance, after being 5.00 some months before. A few months later they reduce it to say 5.25, and the idiot public think it's great.
    You bullied, you laughed, you lied, you lost!

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    More right-wing bullshit by Ian Cowie; How are national insurance contributions a tax on income? The National Health Service, Pensions and benefits scheme have to be funded somehow. Oh I am sorry he doesn't give a s**** about the sick the elderly (probably sold his grandmother), and the unemployed. In case he he has forgotten it was the tories who introduced the poll tax and put VAT on domestic fuel. The same people refused to invest in research and left the country dependent on foreign imports of fuel no wonder it's so damned expensive. Wake up and smell the coffee Ian Cowie, you are like a good number of Americans - go figure!

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    Quote Originally Posted by WhiteKnight View Post
    More right-wing bullshit by Ian Cowie; How are national insurance contributions a tax on income? The National Health Service, Pensions and benefits scheme have to be funded somehow. Oh I am sorry he doesn't give a s**** about the sick the elderly (probably sold his grandmother), and the unemployed. In case he he has forgotten it was the tories who introduced the poll tax and put VAT on domestic fuel. The same people refused to invest in research and left the country dependent on foreign imports of fuel no wonder it's so damned expensive. Wake up and smell the coffee Ian Cowie, you are like a good number of Americans - go figure!
    Why the fok do people like you expect the state to bail them out all the time, plan for your future, let me guess you are one of these who sits at home blaming the Poles for taking jobs you wouldn't do anyway. Now instead of you and your ilk spending all your money on alcohol and drugs, go and do something more productive and stop being a burden on the state and all us taxpayers. I really do hope the Tories get in and slash benefits across the board and try and stamp out the benfit culture Labour has created.

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    Quote Originally Posted by buriramboy View Post
    Why the fok do people like you expect the state to bail them out all the time, plan for your future, let me guess you are one of these who sits at home blaming the Poles for taking jobs you wouldn't do anyway. Now instead of you and your ilk spending all your money on alcohol and drugs, go and do something more productive and stop being a burden on the state and all us taxpayers. I really do hope the Tories get in and slash benefits across the board and try and stamp out the benfit culture Labour has created.
    Just the muddle-headed, uninformed and arrogant comment I would expect from you.In the first place this has NOTHING to do with the state 'bailing them out', it has obviously escaped your notice few people in Britain wish to see the demise of the NHS amongst other things. Me blame the poles ha ha! that shows just how moronic your post is!!! I don't give a dam about the poles they don't affect me in the slightest. As for your assumption of me being a burden on the state do you realize I don't receive a single penny in benefits - get your f*** facts right! By the way I don't buy drugs either never have and never will. As for those you tell to plan for the future, where do you think those on low incomes are going to find the money? However, I realize by your persistent, narrow-minded and ignorant posts you always blame the hard-up or needy for the countries financial woes over-looking the greed of not a few individuals.

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    where do you think those on low incomes are going to find the money?
    either they should learn to live within their income, or they should get themselves some skills and qualifications, otherwise known as planning for the future, no shortage of free or subsidised learning opportunities in the uk.

    if you are on a low income then it not a god given right that you must have a 40'' plasma tv, sky tv, 2 holidays a year, 40 cigarettes and 5 pints of beer a day, a car, etc.etc.etc ....... and if you cant afford to bring up 5 kids, then dont have 5 kids.

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    Quote Originally Posted by taxexile View Post
    where do you think those on low incomes are going to find the money?
    either they should learn to live within their income, or they should get themselves some skills and qualifications, otherwise known as planning for the future, no shortage of free or subsidised learning opportunities in the uk.
    I knew that would bring you out from under your rock with your usual snide comments. The statement 'get themselves some skills and qualifications' really shows how much you really know. Have you noticed there is a recession at present? Besides somebody has to do the low paid jobs which should they be in the public sector somebody like you doesn't want to pay for (are you an American by any chance?).

    Very often people earn incomes which are inadequate and such persons can only be helped by such support as housing benefit, tax credits etc. whether you like it or not.

    no shortage of free or subsidised learning opportunities in the uk.
    Shows how much you know the free learning opportunities which you fail to name are invariably worthless! A good training course is more often than beyond the pockets of the people who most need them - a fact you are completely oblivious to.

    Perhaps if people like you didn't disappear to Thailand to avoid paying your fair share of tax the country wouldn't be in the state it is. Your other comments show your wanton contempt and disloyalty to what I presume is your own country.

  8. #8
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    Quote Originally Posted by buriramboy
    I really do hope the Tories get in and slash benefits across the board and try and stamp out the benfit culture Labour has created.
    Jing Jing to that brother, I just can't be arsed to answer the ravings of whiteknight, gits like him are one reason I left the UK, and people with his beliefs have been responsible for sinking it to the sorry state it is in now.

  9. #9
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    Quote Originally Posted by WhiteKnight View Post
    Quote Originally Posted by taxexile View Post
    where do you think those on low incomes are going to find the money?
    either they should learn to live within their income, or they should get themselves some skills and qualifications, otherwise known as planning for the future, no shortage of free or subsidised learning opportunities in the uk.
    I knew that would bring you out from under your rock with your usual snide comments. The statement 'get themselves some skills and qualifications' really shows how much you really know. Have you noticed there is a recession at present? Besides somebody has to do the low paid jobs which should they be in the public sector somebody like you doesn't want to pay for (are you an American by any chance?).

    Very often people earn incomes which are inadequate and such persons can only be helped by such support as housing benefit, tax credits etc. whether you like it or not.

    no shortage of free or subsidised learning opportunities in the uk.
    Shows how much you know the free learning opportunities which you fail to name are invariably worthless! A good training course is more often than beyond the pockets of the people who most need them - a fact you are completely oblivious to.

    Perhaps if people like you didn't disappear to Thailand to avoid paying your fair share of tax the country wouldn't be in the state it is. Your other comments show your wanton contempt and disloyalty to what I presume is your own country.
    There you go again expecting the state to bail people out, if people can't earn a decent living that is there problem, why should they be entitled to anything from the state/taxpayer?? Labour as always has foked the country up again same as they did in the late 70's. It is up to the individual to take responsibility for their own lives not rely on the state, people aren't entitled to luxuries, they are not a god given right, welfare spending is out of control under labour, they have made benefits to high, too easy to claim and thus have a benefit culture where people can live without having to work.

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    Just one then-who was it who said education, education, education? ha ha now it's pay for the course or fvck off. Meanwhile the College I worked at now has more employees than ever, including four assistant principals and two vice principals, they used to manage with just the one. Of course they are all paid up liebour members who believe in all that equality and diversity bullshit

    Quote Originally Posted by WhiteKnight
    A good training course is more often than beyond the pockets of the people who most need them - a fact you are completely oblivious to.

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    Waiting for the next 'Maggie' to sort the shithole, formerly known as Great Britain, out.

    Britains, wake up and realise that your taxes are paying people from 'member states' to improve themselves at your expense.

    and no, I'm not BNP, just a realist.

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    Sadly most of the great British public moan and so shit all else.
    I recall petrol hitting a quid a gallon. There was outrage and .......nothing.
    At a quid a new metric mini gallon, there is outrage and..............still nothing.

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    There you go again expecting the state to bail people out, if people can't earn a decent living that is there problem,
    This shows your ignorance; somebody has to do a job if it exists, if they didn't you would be one of the first to squawk about those 'lazy bastards' on the dole. As for their wages being inadequate, the likes of you should stop complaining about how much you have to pay - talk about wanting a free lunch. The rest of your post makes you sound rather like a parrot.

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    Quote Originally Posted by mr Fred View Post
    Sadly most of the great British public moan and so shit all else.
    I recall petrol hitting a quid a gallon. There was outrage and .......nothing.
    At a quid a new metric mini gallon, there is outrage and..............still nothing.
    I did something, I voted with my feet and left the shit pit 10 years ago.

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    Quote Originally Posted by Kurgen View Post
    Waiting for the next 'Maggie' to sort the shithole, formerly known as Great Britain, out.

    Britains, wake up and realise that your taxes are paying people from 'member states' to improve themselves at your expense.

    and no, I'm not BNP, just a realist.


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    Maggie threw everybody out of work.

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    Very often people earn incomes which are inadequate and such persons can only be helped by such support as housing benefit, tax credits etc. whether you like it or not.
    such persons can ONLY BE HELPED by support !! are you mad?

    are these people lacking in mobility? are they sick or disabled? are they 90 years old?

    no they are not, they are perfectly healthy fit human beings.

    necessity is the mother of invention, and if the british government stopped spoon feeding its lazy inadequates then they would have to start thinking for themselves .... some of them might actually come up with an idea good enough to put into practice and secure themselves a decent income ..... and if they cant, well let them eat cake..... or at least live within their incomes, like most people the world over have to do, but so long as they are getting benefits then they have no incentive whatsoever to use their brains.

    mass benefits just stifle creativity, entrepreneurship and self sufficiency, and encourage laziness and a sense of entitlement.

    cut off their benefits for a year and watch them suddenly develop the skills necessary to survive on their own in this world, watch as their self esteem and confidence levels rise, watch as they become better and more responsible human beings.

    a large proportion of benefit receivers are just unmotivated and lazy, and when the government send a cheque every month why should they be anything else.

    state aid should be reserved primarily for the aged and the genuinely sick, and not for anyone else.

    as i said necssity is the mother of invention, and so long as there are benefits, then there is no necessity.

    Perhaps if people like you didn't disappear to Thailand to avoid paying your fair share tax the country wouldn't be in the state it is.
    i dont owe the taxman a penny, but its not my duty in life anymore to pay towards subsidising the lives of the uks benefit dependent wasters.

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    I really don't know why so many of my fellow country folk do so much belly-aching about paying taxes and complaining about those people that don't want to work' which are in fact in a minority.

    Whatever system you have there will always be those who don't want to work - OPEN YOUR EYES AND LOOK AROUND where you are now.

    Have any of you ever considered one fundamental fact relating to Britain? The population! How many people are out of work according to the official figures? Two million. What's the population - around 65 million so only a minority are without jobs so they are hardly likely to be responsible for the country's financial or economic woes unless of course you believe taxexile and his usual baloney.

    Yes there are a lot of faults with society and a good deal may be attributed to the government but the point is it is neither one party or the other that is responsible - my view is they are bad as each other on many issues. Do you think the Liberals have the answer since recent polls suggest they may hold the balance of power come the next election?

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    Quote Originally Posted by WhiteKnight View Post
    There you go again expecting the state to bail people out, if people can't earn a decent living that is there problem,
    This shows your ignorance; somebody has to do a job if it exists, if they didn't you would be one of the first to squawk about those 'lazy bastards' on the dole. As for their wages being inadequate, the likes of you should stop complaining about how much you have to pay - talk about wanting a free lunch. The rest of your post makes you sound rather like a parrot.
    Now we are getting somewhere, you believe that unskilled work that a monkey could do should be paid a lot more, but you don't state why. So why should unskilled workers receive more??? If people can't do a job that pays more, then menial work is obviously all they are good for and they get rewarded adequately for that, so what makes you think they deserve more?? Eating at fine restaurants is not a right or Macdonalds in the case of you and your ilk, if you don't earn enough to eat out, you buy your food in supermarkets and eat at home, even low paid workers have more than enough for that if they didn't spend all their money on alcohol, having the latest TV and car is also not a right, although council estate trash seem to believe it is and cause they don't earn enough just steal them. Always the same with labour, try and say they are for equality but as usual they end up creating more inequality than there ever was before, at least after the last 10+ years they will never get elected again.

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    Quote Originally Posted by WhiteKnight View Post
    I really don't know why so many of my fellow country folk do so much belly-aching about paying taxes and complaining about those people that don't want to work' which are in fact in a minority.

    Whatever system you have there will always be those who don't want to work - OPEN YOUR EYES AND LOOK AROUND where you are now.

    Have any of you ever considered one fundamental fact relating to Britain? The population! How many people are out of work according to the official figures? Two million. What's the population - around 65 million so only a minority are without jobs so they are hardly likely to be responsible for the country's financial or economic woes unless of course you believe taxexile and his usual baloney.

    Yes there are a lot of faults with society and a good deal may be attributed to the government but the point is it is neither one party or the other that is responsible - my view is they are bad as each other on many issues. Do you think the Liberals have the answer since recent polls suggest they may hold the balance of power come the next election?
    Now you really are proving yourself to be even dumber than i thought you were, first off the Liberals are far more left wing than Labour and i'd vote Labour (which will never happen) before i'd vote Liberal, and when you mention the 2-3 million unemployed, you forget to mention the 4 million plus on top of that who are on jubbly (incapacity) benefit, most of whom are perfectly capable of working, but are allowed to use and abuse the welfare state Labour has created.

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    Quote Originally Posted by taxexile View Post
    are you mad?
    Try looking at yourself; the rest of your post is riddled with your usual stupidity not to mention it reminds me of the many other 'bozos' on these forums who neither read nor understand anything which is said.

    mass benefits just stifle creativity, entrepreneurship and self sufficiency, and encourage laziness and a sense of entitlement.
    Just how thick are you or do live on the moon? Creativity? what do you think somebody is going to create? Entrepreneurship - ha ha! you need a good educational background along with good financial backing. By your reckoning somebody who has fallen on hard times is able to holiday in the Bahamas and live in the lap of luxury. You really are talking out of your arse, better get back to writing your crap in The Sun, Telegraph, News of the World and Torygraph - glad I don't buy any of them. After all said and done they are not likely to encourage the entrepreneural spirit you keep ranting about.
    Last edited by WhiteKnight; 22-03-2010 at 10:40 PM.

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    Quote Originally Posted by buriramboy View Post
    , you forget to mention the 4 million .
    That is talking through your rear orifice.......

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    Quote Originally Posted by buriramboy View Post
    Now we are getting somewhere, you believe that unskilled work that a monkey could do should be paid a lot more, but you don't state why.
    Try re-reading the post and using your common sense, that was not what I said, to explain anything to your narrow-minded mode of thinking is obviously futile.

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    WhiteKnight thank you. You have reminded me why I left the UK. I'm glad you feel at home there.

    The days when you could start a business from scratch with almost no capital (and sell for quite a few million as I was able to do, ta v much) are now gone - thanks to a unrestrained welfareism, nannying legislation and unrealistic taxes.

    You can keep your socialist utopia. I'll just stay where I am and buy a bigger boat now that I'm no longer invested in British pesos.

  25. #25
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    buriramboy's Avatar
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    Quote Originally Posted by WhiteKnight View Post
    Quote Originally Posted by buriramboy View Post
    , you forget to mention the 4 million .
    That is talking through your rear orifice.......
    I stand corrected it is not 4 million people claiming jubbly (incapacity) benefit but 2.7 million and these 2.7 million are not included in the unemployment figure, i've used the 2.7 mill figure from 2008 as i can't be arsed googling for an up to date figure although it is probably a lot higher now, and as this article suggests less than a third of the 2.7 million are legitimate claims, i know the truth hurts people such as yourself who support a welfare state and freeloaders who make life harder for honest people, but go on open your eyes and have a read................

    "The system sends 2.64 million people into a form of economic house arrest and encourages them to stay at home and watch daytime TV.
    http://www.politics.co.uk/news/welfare-and-pensions/two-million-wrongly-claim-incapacity-benefit--$485228.htm

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