Wednesday, 19 September 2007

Menzies the Merciless

The Liberal Democrats have clearly lost their heads under Sir Menzies Campbell. The man is clearly detached from reality, judging by his plans for redistributive tax.

So, apparently the point at which you become a snout-in-the-trough fat cat stealing from society is at a household income of £70,000 per year. Let's repeat that - a HOUSEHOLD income of £70,000 per year. Has he given this even a moment's thought?

Let's look at the type of people who might have this income. Two graduates living together might concievably be earning £35k each, from which to pay their student loans and rent a modest flat. They will be taking home £4,300 between them per month, or £4,000 after optimistically low student debt repayments. In London, their basic living costs will be at least £1,000 plus bills and council tax, so call it £1,400. That leaves £2,600. Now take into account the fact that they will have to top up their own pension (unless they work in Whitehall or parliament). Contributing 6% would be modest. Out of gross contributions, that would work out to be about £300 per month for both of them. So £2,300 left for both of them. Deduct £200 for their travel per month, and £100 because being fat cats they have probably indulged in that classic emblem of bling - a clapped-out small car. That leaves £2,000 per month. Now deduct £400 for their groceries for the month, leaving £1,600. Let's assume that they need to save a small amount for the future and for a deposit on a house. £500 per month will give them combined savings of £6,000 per year (so that after only five more years these idle rich will have saved enough for a deposit on a flat). Assume that they take one 2-week holiday in Europe every year, so £1,200 each per year. That's another £100 each per month. So we now have £800, or £400 each, per month left over.

That is £400 to clothe themselves, for any entertainment, for gifts that they need to buy. I don't know about you, but I don't classify that as having 'done "too well" under Labour'.

This is another example of how people currently under 30 have been completely screwed over in the last 10 years as part of the massive wealth transfer to the older generations and part of the massive cost transfer to younger and future generations. Leave alone, Menzies, and stick your lefty nose somewhere else.


Vindico said...

Good analysis. The problem with redistribution (well, the kind the Lib DIms are proposing), is that as you move up the income scale there become fewer and fewer people form which to take, while the number at the bottom remains large. Even accounting for the higher tax those higher incomes can generate, it invariably means placing a larger burden on 'ordinary' people.

Major Gripe said...

Thanks. It also means a brain drain.

I've added you to my blogroll.