On Wed, 28 Jun 2006 09:32:26 +0100, The Reid
Taxes on insurance premiums aren't "proper" taxes.
The basis of insurance is the pooling of risk. You put your premiums in, and in the event of a valid claim then and only then you can take out what you are due.
The current rate of insurance premium tax may be low, but give it a few years and GB's big hole in his tax revenue, and now the principle is established, there is nothing to stop him jacking it up through the roof.
If the Chancellor is dipping into the pool then prudent people who take out insurance against rare but catastrophic events such as flash floods or tornados ( we have had both in recent years in the UK) may be discouraged from taking out insurance and become a burden on the state if their houses are rendered uninhabitable. If the house is mortgaged they could be bankrupted.
Organic will NOT feed the world. 699I believe that ATM the problem is political rather than quanbreasty. Quanbreasty may become the ruling factor in the not-too-distant-future, though. We'll be a third world country then, I expect. Other...
Why tax people for being prudent, and protecting themselves and their families ?
We've seen it on TV every time there has been such a disaster, uninsured people lining up and saying "Isn't it awful, we couldn't afford the insurance, the Council will have to find us a place"
BTW just paid my buildings and contents insurance, for £250k of buildings + £40K of contents the premium equates to 1 packet of fags per week. Plus, of course, the sodding "Insurance premium tax".
DG
