CAPITAL
 

 

£ 100 can be capital in the right hands. However for most people £ 2,000 to say £ 20,000, represents capital.
Great if granny wants to spoil you, tougher if you have to save by working offshore. Easy when an oldie pockets
£ 50,000 on a house sale. Really hard when earned from a small business after some successful years.

Even a novice capitalist soon notices that capital is taxed differently from income.
Taxes on capital have lots of concessions for CAPITALISTS. Also they may often be postponed rather indefinitely. There should be a much kinder regime for young wage slaves. They should not be caged within automatic monthly PAYE deductions.

                    Capital gains for most wage earners is a rare beast. Usually income and NIC taxes leave
                    little spare after bed and board. Two, monthly pay packets sharing one bed can help.
                    Yet a couple may still need £ 100,000 gross annual income to nest well off the floor of the
                    housing pyramid and to become (like an MP), a member of the home owning CAPITAL
                    APPRECIATION racket.

                    If not earning such income, then a HAVE NOT couple had better get stuck into any MARKET
                    where hard work pays off. You need to become successful entrepreneurs, ie trainee CAPITALISTS.


                          CAPITAL APPRECIATION -- the racket -- how oldies free ride from good locations


                                                         TAXES are controlled by oldies for their advantage.

Briefly if you are after a flat, an oldie can often outbid you on the estate agents price. This is because the oldie often has access to tax free capital. Especially in infra-friendly locations (see INFRA-FRIENDLY LOCATIONS). In these oldie-intensive, sought after residential locations, the CAPITAL APPRECIATION each year can cancel out other tax payments such as PAYE and NIC and give the oldie a golden tax-free ride.

Capital appreciation can be 5% annually on a well connected £ 400,000 house. This is £ 20,000 a year, nicely cancelling out most of the other tax which the oldie pays.

Golden tax-free rides include infra surfing free rides (transport), education free rides (near good school), university proximity, improving retail or leisure amenities and other "GIFTS" paid by tax slaves elsewhere.

Again if the flat is bought to let, expenses are deductible against rents. MPs like many hundreds of thousands of oldies were frantically active during the past boom.

See MPs -- THEY VOTE FOR SECOND HOMES FIDDLE.

CAPITAL INVESTMENT


The state is desperate for revenue. Take as an example VAT


A kitchen toaster or a dress may be made in China and exported from the factory gate for £ 6. A buyer from Peter Jones buys scores of similar priced items and a shipper packs all the stuff into a container. The full expense of the transport cost, in China perhaps by road and rail and then by container ship to a UK port is never fully clear at present because much of the environment degradation at sea, air pollution and port pollution is ignored in the scramble by freight companies to compete and fill their ships (container shipping is estimated to be 46% idle in 2010). The main point is that imported goods should all carry a huge health warning -- even more visible than for cigarettes which after all are mostly smoker damaging.

The UK state which takes £ 79.8 billion [2] from VAT monitors retail sales "as a sign of Consumer Confidence" but in truth it is desperate for the TAXING DISTRACTION (with massive environmental damage) of retail habits to continue.

Thus Toaster £ 6 Zhejiang environmental damage uncosted £ 4**
  Freight £ 2  
  Admin £ 2  
       
Cost into shop   London  
and presentation £ 6    
       
Mark up £ 70   a sales assistant and her boss puts in £ 12 labour. The UK state takes £ 8 in PAYE & NIC and £ 1 in business rates
Retail £ 86    
       
VAT, 17.5% £ 15.05   VAT                         £ 15.05
       
COST to customer £ 101.05   UK STATE GRAB £ 24.05 plus £ 4**

The UK state takes the easiest share -- larger than the Chinese producer. Then wastes most of it on lousy state delivery of what the state should not be doing. Who most exploits low paid workers in China and India and wastes their energy and efforts?
The UK state -- not the different shippers.

Better before joining the retail obsessed degenerates, best to understand why such pressure to shop is government backed -- even to the point where the state encourages binge drinking and binge eating and binge cheap fashion shopping.

How to use money saved (or even advances from credit card borrowing) to create wealth see INVESTMENT.

The table dramatically shows how UK (and US) state officials have conspired with global financiers to destroy UK and US manufacturing.
See also brilliant new book by David Degraw "The Economic Elite Vs. The People of the United States of America" on how the two US political parties are working with the 1% of US financial elite to eliminate American manufacturing, i.e. the middle class!


In the UK the state grab from retail means that big retailers are treated as agents for the state and get special favours as such. This is seen at various levels - the big retailers appear to be Top Charity donors but see the exposure in CHARITY. They also get planning permissions for hyper stores which destroy smaller retailers.

Over time half a dozen large firms have come to dominate the UK retail scene. They appear to choose what we sleep on, what we eat and drink and what furniture we live with. Does this mean they are good listeners who have our interests at heart? Hardly. Their partner, the state wants turnover and lots of it -- to get its £ 80 billion VAT and more each year.

The state is uninterested in product design and product design jobs, is uninterested in prototyping, testing of products, marketing, distribution, manufacture, small scale business.
If it were it would not be taxing these activities almost out of existence. It only wants its end share -- Value Added Tax.

The state's cold blooded financial outlook greatly aids the financial elite who when the retail plums are ripe will without regret and with the state's agreement, flog off these great large retailers to the only other party with a greater potential stake in this retail stuff than the UK state. The Chinese who are astutely creating what Britain used to have a century back "IMPERIAL PREFERENCE".

We predict that within 10 years, Chinese firms will dominate our retail markets from design to consumer purchase - their people at home will have transferred millions of the above jobs back to the "mainland".

More alarmingly for the UK state, these Chinese emporiums will have their slant on how deeply they cooperate as unpaid tax collectors for their trading empire satraps. (£ 6 toasters could be exported as £ 20 toasters when Jono Liws is Chinese).

 

 

 

 

 

 

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Source:
[1]
Times 6.04.2010 Leo Lewis, "Shipping News Bulk Carriers are Returning to Turbulent Sales"
[2] http://www.hmrc.gov.uk/about/autumn-report-2009.pdf, p.35