Did the Property Bubble actually cost the taxpayer anything?

[Duke of Marmalade]

I'm going to propose a controversial theory here. Yes, we are now told that at best estimate the bank crisis will cost the taxpayer 20bn, almost all down to Anglo.
But over all, the taxpayer is probably quids in from the crazy property bubble.

Let me explain before you punch your computer screen. We know that annual tax take is down 20bn (?) from its height a few years ago. Some of that fall is due to the recession but a large part is due to the collapse in "bubble" taxes we should never have had in the first place - stamp duty, VAT, CGT etc. So the taxpayer was the greatest beneficiary of the bubble and it showed in a pretty healthy debt ratio by international standards, very lenient income tax rates, silly public service salaries and welfare payments and an infrastructure which in the past we could only envy of our subsidised northern brethren.

Now is payback time. What is the old adage? "Eaten bread is soon forgotten".

 

[DerKaiser]

I'm going to propose a controversial theory here. Yes, we are now told that at best estimate the bank crisis will cost the taxpayer 20bn, almost all down to Anglo.
But over all, the taxpayer is probably quids in from the crazy property bubble.

Let me explain before you punch your computer screen. We know that annual tax take is down 20bn (?) from its height a few years ago. Some of that fall is due to the recession but a large part is due to the collapse in "bubble" taxes we should never have had in the first place - stamp duty, VAT, CGT etc. So the taxpayer was the greatest beneficiary of the bubble and it showed in a pretty healthy debt ratio by international standards, very lenient income tax rates, silly public service salaries and welfare payments and an infrastructure which in the past we could only envy of our subsidised northern brethren.

Now is payback time. What is the old adage? "Eaten bread is soon forgotten".

I was on a similar track before here:

http://www.askaboutmoney.com/showthread.php?p=999465#post999465http://www.askaboutmoney.com/showthread.php?p=999465#post999465

Basically, property injected huge amounts of cash into government coffers throughout the noughties.

As a country and as individuals we enjoyed higher disposable incomes. Had we saved rather than squandered these incomes it could possibly have subsidised the whole crash, 'bailout' or whatever else you want to call it

 

[Duke of Marmalade]

I was on a similar track before here:

http://www.askaboutmoney.com/showthread.php?p=999465#post999465

Basically, property injected huge amounts of cash into government coffers throughout the noughties.

As a country and as individuals we enjoyed higher disposable incomes. Had we saved rather than squandered these incomes it could possibly have subsidised the whole crash, 'bailout' or whatever else you want to call it

Yep, you beat me to it.