"I spent 20 years as a trader in London. Andy Burnham wants to tax me to death"
I've done my time in the financial services industry. For 20 years, I worked in London banks as a trader. Now I'm retired and it seems that everything I have amassed will be up for grabs by the new British government run by Andy Burnham.
The British state needs money. As the recent Office of Budgetary Responsibility Report made clear, UK government spending is on an unsustainable trajectory. From 2031, primary spending (government spending including debt interest rate payments) is expected to exceed primary receipts (taxes) and then the issue worsens exponentially.
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In response to this situation, Andy Burnham is a "circuit breaker" government with the "biggest changes for 40 years." He's proposing a 10 year plan that seems almost certain to increase taxes on people like me. I am apprehensive. So is everyone else I know in my situation.
I have done well, but I have also worked very hard and already paid millions in tax. Income tax in this country is 45% above £125k. If you take £100 earned above this amount and subject it to an additional 20% VAT, you end up with £44. If you don't spend that money but place it in investments, you will be taxed 40% a year on investment income. If it's in your pension, you will be taxed when you withdraw it and taxed 40% upon death if you don't. This is before all the other costs like fuel duty.
In total, we are already being taxed at a rate of 70% of more.
The prevailing opinion seems to be that taxes on people like me should be even higher still. I'm not sure what I have done to deserve this, but I fear that it will not end well. Andy Burnham was not elected and I'm not sure he understands what the situation is. This country already depends on a tiny tax base. It can't build a mountain on a roller skate.
Derek Waters is a pseudonym
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