Stealth tax traps 5 million drivers

A report in the Daily Telegraph reveals that 5 million drivers are increasingly hit be a new stealth tax. The tax is as a result of the UK Government's failure to index mileage allowances paid to people who legitimately use their cars on business purposes. The Inland Revenue allows employees and the self-employed to claim 40p for each mile driven on business. According to the AA (Automobile Association) the true cost of driving now averages 44p per mile, leaving most employees 4p out of pocket. Many employees work for employers - some of them voluntary bodies - where the rate paid is even lower than the Government maximum. Anybody being paid more than the 40p minimum would have the balance taxed as income!!!! The current 40p per mile limit was set in 2002. Since then petrol, insurance and road taxes have all risen faster than the general rate of inflation.

Top Investor Leaves the Dollar

Jim Rogers is a top investor who lives in Asia. He famous for predicting financial trends and is followed by thousands of American investors. Mr. Rogers has declared that the U.S. is now in recession and is dumping his Dollars for Asian currencies such as the Chinese Yuan.

Whether Mr. Rogers is able to forecast currency trends may be in dispute. Nevertheless, the market sentiment is certainly leading to recessionary thinking. Many headlines and the recent weakness in the Dow Jones Index are all pointing in a negative direction.

New Stealth Tax

According to a report in The Daily Telegraph the Chancellor of the Exchequer made a crucial omission in his recent pre-budget report. Sly Alistair Darling forgot to mention that he is raising the threshold limit for 11% national insurance contributions (NIC). From April 2008 the current limit of £34,840 will rise to £40,040. The increase means a rise in contributions of £10 per week.

To read the Telegraph article click on the post title.