Tuesday, November 20, 2012

Highly Taxed? Youngsters today have no idea!

When I was young, and yes even middle-aged, descriptions of how hard things were during the war or childhoods of the elder generation became somewhat tedious and frequent thus becoming the subject of media comedy sketches.

The column in today's City AM, linked here, plus the return to the stage of "The House" on the closing days of the Callaghan Government (for which I have been lucky enough to obtain tickets) caused me to recall what "High Taxes' really means.

The top rate of tax at the end of the Labour Governments in the late 1970s kicked in at a fairly low income for a London commuter, with a mortgage and young family at a rate of 83%. National Insurance came on top, but worse still there was an investment income surcharge of 15%. Thus when my first wife's parents died and left her an inheritance which she placed on deposit (while refusing to inform me of the amount nor consequent interest,) I was left in an impossible situation, unable to declare the exact amounts upon which I was legally obliged to pay in excess of 100% of my personal income.

I left for the USA, returning when Thatcher was elected, then noting the wealth with which the Labour Ministers of the Wilson/Callaghan years eventually retired, few having been born into wealth therefore certainly tax avoiders!

Amazingly enough, eventually Labour was elected again, as I now presume they will be even after the combined Blair/Brown/Balls/Darling fiasco in which Labour again destroyed the fabric of our country!


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