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Fine if you can predetermine how long you are going to live biggrin.png

 

You can always buy an annuity - OK, not good value at the moment, but rates should rise in a few years. With an annuity it's someone else's problem.

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I'm looking forward to the MHK's singing this to Eddie before he starts his speech...     "That's our Eddie" Ooh ooh ooh ... He'll make us so blue Make us pay for our poo He'll make all our trou

I suppose I am.   Right now I'm thinking of several words that rhyme with 'Matt'.

There has been little comment here on possibly the biggest juggernaut heading our way. The public sector pension liability. It was said during the debate that a transfer was made from reserves equival

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Fine if you can predetermine how long you are going to live biggrin.png

 

You can always buy an annuity - OK, not good value at the moment, but rates should rise in a few years. With an annuity it's someone else's problem.

Nice problem to have if you die next week.

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The tax cap changes are controversial. Someone wanting to avail of the tax cap basically now has to sign up to paying £600k in tax over 5 years, regardless of their future earnings. This will take a hell of a lot of balls for business people whose profits will fluctuate up and down in the normal scheme of things. Granted that Teare had to do something, for Athol St folk were taking the piss in manipulating their earnings to defer into a single capped year. But 5 years?? I don't think that's fair either. It will be interesting to see what this means for the future, given the £600k commitment now required. Has Teare shot himself in the foot with this one?

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Only needing £11m from reserves for 2014/15 this soon after a £200m revenue cut seems like quite a result to me.

 

Though it does show just how much money was wasted in the past

 

I talked about this a year or two ago; on the face of it 200mill shortfall sounds bad but in reality our budgets on spending back in the days of free VAT money were just that budgets or the amount they hoped to spend.

 

In reality they never spent what they had available, I seem to remember that the capital budget was historically only about 55-65% spent in a year and that budget alone was responsible for proposing to spend upward of 100mill a year alone.

 

When you look at it like that, they haven't worked wonders but likewise it never will be as bad as it is painted on here most of the time, we are doing okay, may not be the popular view on here but you cant argue with the figures above. Only 11 million needed to be taken from Reserves, that is a result in my book and EXACTLY what Reserves are there to do.

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The Govt would like people to work beyond their retirement date and are raising that date to force people to do so.

 

This will allow the Govt to keep to keep the OAP at a lower level than may otherwise be necessary to provide a living remuneration.

 

Cutting the allowance to all retirees, thereby increasing their taxable earnings is hardly going to help encourage continuing to work .

 

The OAPension takes up the basic tax allowance so any earnings above the extra 1k are taxable and therefore will be a consideration in the decision to carry on working, human nature and our abhorrence to paying tax being what it is.

 

There comes a time in everyones life when they are not able to work, unable to find employment because of their age or need shorter hours. Reducing the extra allowance will mean that they pay tax on a relatively small investment income and could lead to the Govt having to raise the pension. Own goal?

 

Is this another measure that they have not fully thought through ? While a 65 - 70 yo may be able to work to supplement their pension. Can those over 70? Should the cut have applied to a certain age group if anyone at all?

 

Too all the smug thirty somethings, not just Tarne, your turn will come. If the Govt continues in this vein you can expect the worst tax and charges regime that the Island has ever known and your kids will be wanting euthanasia to be available.

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Too all the smug thirty somethings, not just Tarne, your turn will come. If the Govt continues in this vein you can expect the worst tax and charges regime that the Island has ever known and your kids will be wanting euthanasia to be available.

 

Euthanisia at a set age in exchange for a guaranteed health service and comfortable pension. What's up with that?

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Current pensioners are about the wealthiest there ever has been if not the wealthiest. They have had the benefit of rising house prices and are generally asset rich if not cash rich. There is no rule that says you have to leave a fortune to your children.

 

Funny thing is, people I know who have expected to inherit a lot of money on their parents death have underperformed in life and have spent most of their lives treading water, forgetting that people live a lot longer these days, especially those with money and have basically wasted the bigger part of their their time on this earth.

 

When I was in my 20s I thought they were lucky to be looking forward to that kind of financial security without having to do anything. Now I look at the same people and see very twisted 50+ year olds, small house, poor job and having to suck up to their parents to have any remaining chance of getting a bit of the money that they are pissed off about that their parents are spending freely having a great time travelling the world w00t.gif anyway I digress...

 

Pensioners who have not been fortunate enough to get on the property ladder in the 60s/ 70s and have not earned enough to save a nest egg are the most vulnerable and they are taken care of by the state.

 

So what exactly is the problem? Rich pensioners can afford the extra cash, poor pensioners are okay anyway.............

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The tax cap changes are controversial. Someone wanting to avail of the tax cap basically now has to sign up to paying £600k in tax over 5 years, regardless of their future earnings. This will take a hell of a lot of balls for business people whose profits will fluctuate up and down in the normal scheme of things. Granted that Teare had to do something, for Athol St folk were taking the piss in manipulating their earnings to defer into a single capped year. But 5 years?? I don't think that's fair either. It will be interesting to see what this means for the future, given the £600k commitment now required. Has Teare shot himself in the foot with this one?

 

No he hasn't, someone has come up with a very clever way of stopping people abusing the tax cap system. After they were made to change the "must pay a certain amount of dividend per year" thing by the whoever, the tax cap was open to massive abuse by holding back dividend payments to let them build up over a few years and then no matter what you paid yourself you only paid the tax cap sum.

 

Hats off to whoever thought this move up, it is a good anti avoidance move.

 

You have to remember the 600k tax over 5 years is the amount of tax someone has to pay, not their earnings for example the 100K cap is what you would pay in tax on about 650/700k earnings. Yes there are a few rich types on the island who would generate that in interest on their invested money but there are not that many private businesses that make that type of profit that could actually be taken out of the business as wages/ dividend.

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Blade Runner, on 18 Feb 2014 - 19:44, said:

Funny thing is, people I know who have expected to inherit a lot of money on their parents death have underperformed in life and have spent most of their lives treading water, forgetting that people live a lot longer these days, especially those with money and have basically wasted the bigger part of their their time on this earth.

 

When I was in my 20s I thought they were lucky to be looking forward to that kind of financial security without having to do anything. Now I look at the same people and see very twisted 50+ year olds, small house, poor job and having to suck up to their parents to have any remaining chance of getting a bit of the money that they are pissed off about that their parents are spending freely having a great time travelling the world w00t.gif anyway I digress...

Inheritance tax would deal with that. They could use the income to fund getting more people over to university.

Blade Runner, on 18 Feb 2014 - 19:44, said:

Pensioners who have not been fortunate enough to get on the property ladder in the 60s/ 70s and have not earned enough to save a nest egg are the most vulnerable and they are taken care of by the state.

Spent it on holidays in Spain, booze and fags. Probably had colour TV and were the first to get Sky.

 

I'm joking obviously: but it's the kind of thing which people say.

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I stand to be corrected on this but I heard the tail end of Bell's speech to Tynwald around half four on MR.

 

Did I really hear right when he said that the Tax Cap had not worked as well as intended? From our Al?

 

Anybody......?

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Current pensioners are about the wealthiest there ever has been if not the wealthiest. They have had the benefit of rising house prices and are generally asset rich if not cash rich. There is no rule that says you have to leave a fortune to your children.

 

Funny thing is, people I know who have expected to inherit a lot of money on their parents death have underperformed in life and have spent most of their lives treading water, forgetting that people live a lot longer these days, especially those with money and have basically wasted the bigger part of their their time on this earth.

 

When I was in my 20s I thought they were lucky to be looking forward to that kind of financial security without having to do anything. Now I look at the same people and see very twisted 50+ year olds, small house, poor job and having to suck up to their parents to have any remaining chance of getting a bit of the money that they are pissed off about that their parents are spending freely having a great time travelling the world :w00t: anyway I digress...

 

Pensioners who have not been fortunate enough to get on the property ladder in the 60s/ 70s and have not earned enough to save a nest egg are the most vulnerable and they are taken care of by the state.

 

So what exactly is the problem? Rich pensioners can afford the extra cash, poor pensioners are okay anyway.............

I recall having this discussion with a mate's wife, she was going on about how she wanted to leave money and the house to her kids (when/if she acquired both!) and that I should too, I responded that if my kids, in their adulthood (hopefully) were dependant upon me and my wife leaving them money and the house then as parents we would have failed on a monumental scale and that, if anything, the inheritance would more than likely go to any grandchildren we may have....that's if we hadn't gone to Vegas and many other places and blown the lot on high living for our last few years! :-)

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For 40 or so years, but certainly the last 15 I have always listened with interest to Tynwald and House of Keys proceedings and especially the budget.

 

But now I just feel disgust. It's as if I see the whole lot of them (bar a very small handful) in a different light. Maybe someone has smeared shite over the lenses of my rose tinted spectacles, maybe the lenses have dropped out. But whatever, somehow I reckon I can see clearer.

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