Sunday Telegraph letters...
...sadly did not feature my letter, which I repeat below.Dear Sir,
Nigel Farndale writes (ST, 18th March 2007) that he 'fantasises' about a housing crash so he can afford a larger property. He also tells us that he bought a house in Clapham in 1996, and sold it in 2006. According to the Nationwide's House Price Index the average house in London tripled in price over this period. Thus Farndale's capital gain would have been hundreds of thousands of pounds [MJT - I put this in to account for the uncertainty, and I think it gives the impression it was 200-300k, whereas I really think it was more like 500k].
He now wants house prices to collapse, despite being aware of the misery that would cause millions, so he can repeat the process again. The man's sense of entitlement is astonishing.
Yours
Matthew Turner
They did print this letter, however, from Mr Goodman:
Sir - Last year, a student I know was earning £15,000 on his placement year. This is a handsome salary for a placement that he was delighted to get. However, if the present proposal had been in force, he would have paid double the tax.
If students are fortunate enough to get a placement, they will find that Mr Brown is hitting them hard. All this on top of tuition fees, top-up fees and living expenses.
Terry Godman, London SE25
"Double the tax"? This is not true. One of those handy PAYE calculators tells me that this 'student I know' would pay income tax of £1,934 and National Insurance of £1,095. Under the 2008/2009 tax year, ignoring the changes in allowances, he would pay £215 more on the 10% band (as it is now a 20% band) and 25% less on the remainder (15k - tax free allowance - 2150 10% band) which is £156. So his tax burden will rise by £59, an increase of about 3% on the income tax bill, and about 2% on the total tax bill (including NI). This is not "double the tax".
Diane Rawson appears to have a better case:
Sir - I am a 63-year-old woman with a combined state and private pension of just over £7,000 per year. Imagine my horror to discover that my tax bill is to double overnight and that I am to pay an extra £250 per year out of my modest income.
It is scandalous that I am to be penalised so that Mr Brown can be applauded for the 2p reduction in basic rate of income tax. We are obviously considered not to matter in this Chancellor's eyes.
Diane Rawson, Bundys Way, Staines.
In other words she basically only earns income to put her in the 10p bracket, and as that is doubling, her tax doubles. But I'm a little confused - she is a pensioner. And thus her tax free allowance is much higher than normal, and is to rise sharply. The IFS calculator suggests she is nearly £200 a week better off under the new proposals.
Labels: Sunday Telegraph
posted by Matthew @ 3/25/2007 09:14:00 AM
Comments: 3
