Index.php

From the 4chan wiki

Revision as of 23:34, 14 October 2012 (edit) 90.209.153.213 (Talk) ← Previous diff		Revision as of 07:56, 15 October 2012 (edit) (undo) 90.209.153.213 (Talk) Next diff →
Line 1:		Line 1:
-	The banking industry has described its agreement with Greece to cut its debts as "unprecedented".	+	More and more people on "relatively modest salaries" are being dragged into becoming higher-rate taxpayers, Budget analysis suggests.
-	A group of banks and other investors in Greek government debt have agreed to exchange their debt for new bonds that are worth much less and pay a modest rate of interest.	+	The number of higher rate taxpayers, who pay a chunk of their income at the 40% tax level, could rise from 3.7m last year to 5m by 2014.
-	Including the reduced interest rate, the losses to the banking industry are more than 70%.	+	The Institute for Fiscal Studies (IFS) made the prediction after studying changes to tax levels in the Budget.
-	For some of Europe's biggest banks, that means heavy losses.	+	However, lower-income families will benefit from the changes.
-	"The losses are going to be substantial, but they are contained and there's a longer-term benefit for the system in having a core group of investors sit down across the table and coming together," said Charles Dallara, managing director of the Institute for International Finance, which negotiated on behalf of the banking industry.	+	In the Budget, the government also decided to end age-related tax allowances for pensioners.
-	Continue reading the main story	+
-	�Start Quote	+
-	In the long and tawdry history of governments borrowing more than they can afford, this represents a remarkably huge, unprecedented write-off�	+	The IFS said that move will cause pensioners to lose 0.25% of their income in 2014.
-	image of Robert Peston Robert Peston Business editor, BBC News	+	'Millionaires pay less'
-	More from Robert	+	Shadow chancellor Ed Balls criticised the changes to pension allowances.
-	It is perhaps no great surprise that Greek banks are the most exposed to Greek debt.	+	"The fact is the normal increase in the state pension just keeps up with inflation, but cuts to personal allowances in the Budget will mean 4.4 million pensioners are worse off in real terms," he said.
-	According to Barclays Capital, the top two holders of Greek debt are National Bank of Greece, with 13.2bn euros ($17.5bn), and Eurobank EFG, which holds 7.3bn euros ($9.7bn).	+	"It's now even clearer that this was a Budget that asked millions to pay more so millionaires could pay less."
-	Once the bond exchange is completed, those holdings will be worth less than half their current value, and if you include future interest payments, worth 70% less.	+	But Chancellor George Osborne told the BBC that no pensioner would be worse off in cash terms, including the "largest increase in the state pension" next month.
-	Outside Greece, French and German banks hold the most Greek debt.	+	"The net changes made by this government, including introducing this triple lock, mean that pensioners are better off."
-	The last bailout?	+
-	Many foreign banks have already accepted that their investments in Greece are now worth just a fraction of their original value, irrespective of the latest deal.	+	The tax-free chunk of income, known as the personal allowance, is rising for the under-65s to �9,205 in April 2013.
-	In its most recent set of results, France's BNP Paribas, the biggest owner of Greek debt outside Greece, said that it had written down the value of its Greek debt by 75% on its balance sheet.	+	The IFS said this would cost the Treasury an estimated �3.5bn, and would mean 675,000 fewer people would pay income tax.
-	And according to the Barclays report, Commerzbank is the biggest holder of Greek debt among Germany's banks. Its holdings of government debt have complicated its efforts to raise new finance to boost its balance sheet.	+	From 6 April, people earning taxable incomes of up to �34,370 will pay 20% in tax and people earning between �34,371 and �150,000 are taxed at 40%.
-		+
-	For the average investors, the effect of Tuesday's bailout is limited. Most insurance companies and investment firms have little or no exposure to Greece.	+
-		+
-	Some hedge funds have built up their holdings in Greek debt, but it is likely to be a relatively small amount, perhaps less than five billion euros.	+
-		+
-	It is thought some will refuse to sign up to the bailout deal and hope to be repaid in full.	+
-		+
-	Analysts are now wondering whether the latest deal will be enough. The Greek economy is in recession, making it even more difficult for the nation to pay its debts.	+
-		+
-	"The debt sustainability analysis is much worse than people were expecting," said Laurent Fransolet, head of fixed-income strategy research at Barclays Capital.	+
-		+
-	"It's ambitious and we cannot be sure this is the last bailout. Does it buy a bit more time? Yes. But the next one will have to involve the official sector much more."	+

---

Revision as of 07:56, 15 October 2012

More and more people on "relatively modest salaries" are being dragged into becoming higher-rate taxpayers, Budget analysis suggests.

The number of higher rate taxpayers, who pay a chunk of their income at the 40% tax level, could rise from 3.7m last year to 5m by 2014.

The Institute for Fiscal Studies (IFS) made the prediction after studying changes to tax levels in the Budget.

However, lower-income families will benefit from the changes.

In the Budget, the government also decided to end age-related tax allowances for pensioners.

The IFS said that move will cause pensioners to lose 0.25% of their income in 2014.

'Millionaires pay less'

Shadow chancellor Ed Balls criticised the changes to pension allowances.

"The fact is the normal increase in the state pension just keeps up with inflation, but cuts to personal allowances in the Budget will mean 4.4 million pensioners are worse off in real terms," he said.

"It's now even clearer that this was a Budget that asked millions to pay more so millionaires could pay less."

But Chancellor George Osborne told the BBC that no pensioner would be worse off in cash terms, including the "largest increase in the state pension" next month.

"The net changes made by this government, including introducing this triple lock, mean that pensioners are better off."

The tax-free chunk of income, known as the personal allowance, is rising for the under-65s to �9,205 in April 2013.

The IFS said this would cost the Treasury an estimated �3.5bn, and would mean 675,000 fewer people would pay income tax.

From 6 April, people earning taxable incomes of up to �34,370 will pay 20% in tax and people earning between �34,371 and �150,000 are taxed at 40%.