For me, taxes make up about 70% of the cost of motoring. The £220 road tax is a bitter pill to swallow since it represents over 10% of my annual motoring cost and, unlike fuel duty, it doesn't encourage you to do something useful like drive less or more diligently.
For newish luxury cars, depreciation is still the biggest cost-but you'll still hear owners agonising over whether a £30,000 BMW has a £35 tax disc or a £75 one...
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To actually address your original question, I look at the RAC figures for 2011.
They put the average cost of running a new car at £6,689, comprising:
Fuel-£1458
Insurance: £551
Maintainance:£472
VED:£111
Depreciation:£3582
Finance:£366
I estimate that taxes comprise £1025/£1622 depending on whether you include the VAT on the depreciation.
For second hand cars, the overall cost was £4,724, comprising:
Fuel-£1556
Insurance: £570
Maintainance:£713
VED:£119
Depreciation:£1286
Finance:£334
I estimate that taxes comprise £1127.
So the more money you have to spend on your car, the less tax you pay. Regressive taxation. Doncha just love government redistribution?
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For me, taxes make up about 70% of the cost of motoring.
That fact alone is quite astonishing. If you said that to an American they'd have a heart attack.
Its a shame the Fair Fuel protest has fallen on deaf ears and the Government will press ahead with their plans to derail the economy and punish low earners further. They only 'need' the revenue because their economic growth plans have predictably failed miserably leading to a hole in the budget, and much like the last Government the motorist is the first to be rammed up the a*** when they get in trouble. Easy target you see.
The fallacy in calculating 'cost of ownership' is including depreciation, the people who can afford new cars are not those who will be affected by fuel duty rises so we can forget about them. Its those who have to make do with a £595 car and skip servicing purely because they cant afford it who will be hit, but the Government hasnt given a s*** about them for quite some time so i dont suppose it'll change soon.
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The government needs to get cash from somewhere.
How else would they be able to support lazy unemployed McDonalds/Greggs munchers who do nothing?
Or fund useless and pointless wars?
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When it comes to fiscal policy the government are like your typical school bully, they go after the vulnerable and leave those that can fight back alone, ie super rich, and people in the city who control the main source of GDP we now have in our society, ie financial services courtesy of the Thatcher government of the 80's
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The government needs to get cash from somewhere.
No it doesnt. It gets far too much of our money as it is, they need to get used to operating with a lower budget. The motorist cant bail them out every time their economic plans fail. But thats not the point, the point is the Government wont raise any money from this duty rise because people will just buy less of it, stop going to work, get more economical cars etc so they wont actually raise any money, people will just buy less fuel, all they'll do is punish those lucky enough to still have a few quid which they havent got their mitts on.
How else would they be able to support lazy unemployed McDonalds/Greggs munchers who do nothing?
High fuel prices will kill any economic recovery, its as simple as that. If the Coalition actually wants to raise revenue, get people into work it needs to be slashing taxes which affect the worst off, such as fuel duty. Freezing the duty would've been a ridiculous enough policy but raising it really is the mark of an incompetent fool who's lost his calculator.
Edited by Avant on 16/03/2012 at 22:37
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Because Avant has butchered my post for no reason i should probably elaborate, as my post now reads very strangely indeed.
How else would they be able to support lazy unemployed McDonalds/Greggs munchers who do nothing?
The reason i hate this pathetic argument (usually a silly line like this one) is because the Conservative's have done an excellent job portraying every unemployed person as underclass scumbags. Despite the fact the Conservative's are responsible for rising unemployment numbers. They've also done an excellent job convincing Daily Mail reading middle England that 100% of the Treasuries expendature is on benefit cheats (in reality its 3% of the welfare budget, which in itself is less than half the size of the pensions budget) which is why its always the first thing mentioned whenever Government revenue is being discussed.
The Government spends far too much of our money, billions of it on rubbish they dont need, that much is obvious. Its also obvious that punishing the ordinary person with regressive taxation when the economy is poor will not aid any sort of recovery, however lets stop blaming the unemployed for the Bankers and Government's mistakes please.
Thank you.
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I ouldnt care less about what the papers say - in fact; I dont even read them.
I am talking about what I see on a daily basis everyday here in the north-east.
Most are able to work (and there is work in the area for those who want it); just prefer not to.
You cannot solely blame the bankers; now this is what the papers would have you believe! Without them there would be no UK economy
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I ouldnt care less about what the papers say - in fact; I dont even read them.
I am talking about what I see on a daily basis everyday here in the north-east.
I would hope you're too busy going about your own life to bother observing everybody elses, but the fact is your view of things alone means very little.
Most are able to work (and there is work in the area for those who want it); just prefer not to.
Nowhere near enough work and just because they're able to work doesnt mean employers want to employ them. Theres 3 million unemployed, is there 3 million job vacancies? No theres not. Also the North depends more on the public sector for employment than the rest of the country, and with the Conservative's smashing the public sector in their quest to put all workers on benefits, areas like the North East are affected more than other areas.
You seem to think 100% of jobseekers could go out and get a job tomorrow if they wanted it, the reality is very different. Theres nowhere near enough jobs and its an employers market, employers only want old people with reams of experience, why will they take on someone who's 4 years unemployed when they get 75 applications from superior candidates?
When the job vacancy numbers match the unemployment numbers then i'll take your point.
You cannot solely blame the bankers; now this is what the papers would have you believe! Without them there would be no UK economy
Theres no UK economy now, because of the bankers. Thats like being happy about being shot because its preferable to being crushed in an industrial accident. Both options are pretty dire.
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In my line of work I deal with NHS patients.
I often have a chat with said patients
The above are my observations based on years of 'serving the public'
Yes - there is not enough work for all the unemployed; but there are jobs available for some that want them. Alternatively they could be taken up by 'immigrants' who are willing to work perhaps unsociable hours/in 'degrading' jobs only then for the British to complain about how there's no work.
Jamie, I appreciate your view and opinion but I would disagree that there is no economy because of the bankers; this sounds like something one would read in 'the sun'
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Yes - there is not enough work for all the unemployed; but there are jobs available for some that want them. Alternatively they could be taken up by 'immigrants' who are willing to work perhaps unsociable hours/in 'degrading' jobs only then for the British to complain about how there's no work.
This is a tired argument. The fact you ignore is rising immigration pushes wages down while living costs keep rising. Employers want the earth for minimum wage, because they've got used to Estonians and Lithuanians willing to give the earth for dreadful pay. In this country we expect a higher standard, to be paid what a job is actually worth and we look for as close to long term job security as possible, things which are not on offer in said jobs. You cant live properly or plan financially based on seasonal work at below minimum wage living in a tent. You also ignore the fact theres certainly not 3 million 'unsociable hour degrading jobs' out there, so the whole 'British too proud to work' argument still doesnt wash. In fact i have no problem with foreigners coming in to do some work, what i object to is the ones who live in tents here, not paying any council tax, p***ing all over the countryside who go home when our economy slips, leaving us to sort it out. They'll be back to leech again when we've repaired our country. I do hate people who only stick around for the good times.
We shouldnt bring ourselves down to Eastern European levels so as us in the first world can gain an income, if we keep going like that eventually computer programmers will be working for £1 a day. The major problem in todays jobs market is employers dont want to pay, they want everything for free. From the restaurants who only take on waitresses under 18 (because they can pay them less) to the retail chains who signed up for the Government's free slave labour plan because they cant be bothered to employ anybody. Current estimates show businesses in this country are sitting on over £700billion which they daren't part with for risk of losing it. Thats the problem.
Jamie, I appreciate your view and opinion but I would disagree that there is no economy because of the bankers; this sounds like something one would read in 'the sun'
The banks broke our economy. The Coalition is damaging the recovery. Too many weak measures akin to using a sheet of Xerox to plug a nuclear reactor leak. I dont read the Sun apart from when im really in need of a laugh.
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I'm not saying immigration is a good thing - this you are assuming
Not all immigrants get paid minimum wage - I know plenty who are not
Yes - British people do generally expect a higher standard, which there is nothing wrong with; but the British aren't exactly known for their work ethic are they?
I also dislike these immigrants who stick around for the "good times"
Yes - employers want everything for nothing; the same can be said for customers and consumers. Times are hard for most.
People dont appreciate the stress levels and the work bankers do. I agree, they are overpayed and somewhat resposible for the state of the economy, but their job is very demanding. Most of the ones I know are at work at around 6am and dont get home till 8pm. Personally; I wouldnt be able to do that
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Yes - British people do generally expect a higher standard, which there is nothing wrong with; but the British aren't exactly known for their work ethic are they?
Reputation can often go before people unfortunately. Im not sure where the reputation for 'poor work ethic' came from. Personally i believe in 'you get what you pay for' meaning you pay someone a decent wage you'll get more productivity out of them. Paying somebody £6 an hour and being disappointed when they dont give you the earth shouldnt be mistaken for a poor work ethic.
However with that said, i've met plenty of people - too many to be honest - who are at best average at their jobs. Infrequent incompetence seems to be the name of the game. Whoever hires them has to take some of the blame and i feel theres an odd hiring culture in this country where companies daren't employ somebody of good competence for fear they'll end up running the place, so they go for quiet unambitious incompetence who can just 'see them through.'
People dont appreciate the stress levels and the work bankers do. I agree, they are overpayed and somewhat resposible for the state of the economy, but their job is very demanding.
On their salaries they wont get sympathy from the vast majority of the ordinary public, irrespective of how stressful they find their job. Everybody has problems and stress of their own to deal with and most of it is connected to money, so as far as they're concerned people on bankers salaries have nothing to whine about.
Most of the ones I know are at work at around 6am and dont get home till 8pm. Personally; I wouldnt be able to do that
Maybe they should go home earlier, the less time they spend at work the less time they have to ruin the country. I could do those hours on that sort of salary, do it for a few years, rake in a few bonuses knowing i can destroy entire banks and not face penalty and then retire at 32. Lovely job.
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I agree, they have nothing to whine about - but it's not an easy job.
If they do fewer hours: they'll be monitoring the market less and make less money for their company. Although this does effect bonus, their 'superiors' will be breathing down their neck.
I think you have an unrealistic idea of their salaries if you think they could retire at 32
If you are on the trading floor it takes a while to move up from being a 'junior' trader. Even if one comes straight out of a top 5 uni and straight into working for an investment bank it will take them at least 6-7 years to progress from being a 'junior trader' Most juniors get paid less than dentists/GP's.
Once you move on from being a junior - yes, salary will increase. You may start to see a 6 figure salary (with bonus included)
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If they do fewer hours: they'll be monitoring the market less and make less money for their company.
Oh no, less trips to the golf club, less ventures to the south of France, less money to evade income tax on, how sad for them.
If you are on the trading floor it takes a while to move up from being a 'junior' trader. Even if one comes straight out of a top 5 uni and straight into working for an investment bank it will take them at least 6-7 years to progress from being a 'junior trader' Most juniors get paid less than dentists/GP's.
What's a top five Uni just out of interest? Anyway, its a better progression than most people have
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Oxbride, LSE, Warwick and UCL - although it does tend to vary a tad
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Who decided they were the 'top five' then?
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Don't know. Employers? The times? lol
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