|
Re: The Chronicles of Rishi
Quote:
Originally Posted by Sephiroth
I did show in my example that a person earning £1 million per annum would pay 44% in income tax. I did not take into account any tax wheezes because I believe that government should legislate properly to close down tax avoidance schemes.
I hear you say "Exactly". I further hear you think "never would a Tory government close the loopholes" and you'd prolly be right because they've done bugger all since 2010. Furthermore, I hear you think, "it's their donors that the Tories are protecting". All of the foregoing are valid criticisms.
Now I'll ruin it all: John Redwood put forward a plan a few years ago that also has merit.
Quote:
However, at a time of economic difficulty, when the government wishes to spend so much more than it is currently collecting in revenue, there are many cries to tax the rich more. To do this successfully you need to have a tax system which attracts more very rich people here, and which tempts rich people to invest, venture and spend in ways which trigger more tax revenue from them. The higher rates introduced by the outgoing Labour and incoming Coalition governments have led to a predictable continuing drop in revenues. Taxes on wealth and income yielded 3.5% less to August 2012 than the same period the previous year.
The USA has lower tax rates on the very rich than the UK. Top rate federal income tax is 35%, compared to 50% (plus 2% NI) here. State income tax varies from 0% to 11%. Allowing an average of around 5% means the US top tax rate is more than 10% lower than the UK one.
Despite this- or more likely because of it – the US top 1% earn 17% of all the income. More importantly , they pay 37% of all the Income Tax paid. So with lower tax rates the USA achieves the goal of getting the rich to pay much more. It also has more seriously rich people, which some will dislike and others will see as helpful to pay all that extra tax. In the US the rich pay more than twice their income level. They make an overall bigger contribution than in the UK.
|
https://johnredwoodsdiary.com/2012/0...-the-rich-pay/
|
Person who earns £700k a year puts forward proposal to reduce his tax, without mentioning all the other additional taxes (like property tax, which is higher in most US States than the equivalent Community Charge, the fact that most small local towns in the US use the local police as a revenue service fining motorists)...
<shocked face>
__________________
Thank you for calling the Abyss.
If you have called to scream, please press 1 to be transferred to the Void, or press 2 to begin your stare.
If my post is in bold and this colour, it's a Moderator Request.
Last edited by Hugh; 10-08-2023 at 16:32.
|