RE: GOLD4 Oct 2022 13:57
copy and pasted from elsewhere,
Moral Hazard
This is a situation where an economic actor has an incentive to increase its exposure to risk because it does not bear the full costs of that risk. For example, when a corporation is insured, it may take on higher risk knowing that its insurance will pay the associated costs. A moral hazard may occur where the actions of the risk-taking party change to the detriment of the cost-bearing party after a financial transaction has taken place.
Wikipedia
Basically today’s reversal on the 45p rate, is the defeat of the most Libertarian act any government has carried out since World War Two
It is a victory for theft and irresponsible behaviour by those who indulge in moral hazard and want somebody else to pick up the bill for it.
This ranges from the big banks who indulged in sub-prime mortgages in exchange for fees knowing full well they could go running cap in hand to the to government (taxpayer) to nationalise their debts courtesy of the hapless Gordon Brown, the man who ‘saved the world’.
It ranges down to couples who conceive a child knowing full well that they have no resources, and fully expect others to pick up the tab and childcare, believing that in the final resort that the ‘council’ will have to provide them with accommodation.
That entitlement and theft are now public policy is clear enough. That Tory MP’s now concede that taking the majority of peoples earnings is acceptable policy shows how far they have sunk to embrace socialist dogma.
As to Gordon Brown, under whose ‘reign’ this party was founded because of his insane economic policies and authoritarian methods, he indulged in moral hazard by leaving a time bomb knowing full well he would be kicked out of office in weeks and the Chief Secretary to the Treasury would leave his infamous note ‘there is no money’.
From Guido...
'Foreign Office Minister Gillian Keegan was spot on when she told Times Radio this morning that the top rate of tax was a political time bomb left behind by Gordon Brown: “I always knew that it was going to be a political problem. I mean, let’s be honest, this was a political trap that was set by Gordon Brown in the dying days of his role as PM, right. And I paid the 50% tax. I was in business then. And I remember how devastating it was because actually, it meant you were paying about 65% tax. And there’s something in your mind, which is like, really, you know, only 35% for me? And I’m doing all these hours. I was a business person, then it was set as a political trap…. In theory it [the top rate of tax] should never have been there.”
There is something immoral about the government taking the majority of your income in tax. It is also a disheartening disincentive; reversing this spiteful tax is the correct policy, though this might perhaps be the wrong time. Getting rid of a political tax that was only set up by Gordon Brown when he knew he was likely to be ousted –to hurt the Tories rather than raise revenue –
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