"Norman Wells" wrote in message
...
Chris Blunt wrote:
On Fri, 29 Jan 2010 18:25:30 -0000, "Andy Pandy"
wrote:


"mick" wrote in message
...
The Conservatives said they were going to put this in their
manifesto. Does anyone think they will
do it, if they get in? personally i doubt it.The need for tax
revenue will be overwhelming.

They probably will but I doubt it'll be a priority. Although with
interest rates so low it probably doesn't bring a lot in now. My
guess is they'll increase VAT substantially and cut a few other
taxes like savings.

In view of the huge mountain of debt that many people have got
themselves into, with very little in savings, I think this is a good
idea. It would be better to cut taxes on savings to encourage people
to save more

I wonder about that. If you take cash ISAs as an example of tax free
savings, all that's happened is that the banks and building societies
offer those at rates lower than any corresponding non-ISA account.

Do they? I've got a regular saver ISA paying 7% with FD, they weren't
offering a regular saver non-ISA paying 11.74% or even 8.75%.

What they're doing is snaffling for themselves the tax advantage that
should be coming to you and me. It's hard in fact to find a cash ISA that
pays any more than you can get elsewhere tax paid.

I've not found that.

Who's to say the greedy banks won't do exactly the same, and regard it as
a windfall, if all savings accounts were made tax free? Will they really
pass on all the benefit to us?

Won't be as bad as the VAT reduction. How many retailers actually lowered
prices by the amount of the VAT reduction?

--
Andy