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cameron....how long has he got

161 posts & 66 voices | Started 2 years ago by rOcKeTdOg | Latest reply from Inbred456

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aracer - Member

Tron - let them go - just keep the money here - money earned in the UK taxed in the UK - so what does it matter if they go. Good riddance I say.

Some wonderful Trotsky thinking there. FWIW I'm well below the 40% band, and given I don't feel that poor, I reckon people earning that much are well enough off to afford it. Don't even have an issue with 50% tax at 100k - though I suspect you may already be into the point where such taxation doesn't raise anywhere near as much as you expect due to the side-effects. Still nowhere near filling the black hole, and any taxation beyond that really does become ideological politics of envy rather than an effective method of revenue generation.

If you want examples, high levels of taxation have been tried before (under Wilson/Callaghan?) - go and check just how much revenue they really made.

Posted 2 years ago #
TandemJeremy - Member

Tron - like your posting about the flat rate tax and the wotsit imaginary curve this is more bunkum.

This is a myth put about by people that don't want to pay taxes. There is no evidence this has ever happened or would happen - and you really think the entire financial sector is going to go to Frankfurt where they are regulated and taxed much more than they are here if we dare raise taxes on them? Remember we are still a low tax economy paying less taxes than in Germany. Significantly less.

Really - you swallow this bunkum wholesale. You need to get a bit more sceptical.

I am not talking about the return to the punitive 95% of tax but just getting people to pay their fare share. Remember NI has a upper limit so that 9% does not get paid on top earnings. I'd like to see tax rates similar to Germany and Holland. They manage to tax top earners at 60+% without a brain drain. And people have to pay for healthcare on top of the taxation.

Pointless debating with you tho as you have swallowed the neocon myths wholesale.

Posted 2 years ago #
Junkyard - Member

any taxation beyond that really does become ideological politics of envy rather than an effective method of revenue generation

It is not envy I simply think that the wealth of the planet belongs to all and should be more equitably shared out. I find that an easier position to justify than to defend individuals vast personal wealth [ often inherited] in the billions. To call it envy is another right wing slur many have bought in to like the claim if we tax more we will get less.

Tron how many bankers left when we taxed their bonuses this year and did we get less money for it than if we had not done it? I just don’t agree that if we tax more we will get less because everyone will leave. Certainly some will but most people are just not that mobile. They have houses, families, friends , hobbies, children in schools etc that also affect where they live. The laffer curve is theoretical and not been tested in the real world. Probably should have chosen a better example than Germany as both their personal and corporate tax levels are higher than ours but I beleive Frankfurt still is a financial centre. In fact most other countries tax rates are higher than ours in EU as well - the USA has higher corporate tax than us but stil does a fair bit of finance iirc. Given the current crisis some may see it as beneficial to not be so heavily reliant on the financial sector as it is unpredictable and f@cked us all up so may be happy to see them leave - I dont hink that will happen despite you saying it will over and over again.
I see little point in insulting each others grasp of the topic because we disagree on this and have a different moral code /set of ethics/philosophical outlook.
I have a B at economics A level and an A at O level from 1988 and 86 respectively can you beat me in an economics Top Trumps?

Posted 2 years ago #
tron - Member

The rest of the staff could be in Frankfurt or another european finance centre and work quite happily to the same hours as people working on GMT in London.

I hear Basel is pretty popular.

There is no evidence this has ever happened or would happen
.

Surely the number of people who go to the effort of non-dom status, umbrella companies, and any other number of complicated tax avoidance schemes are evidence? Or what about the big tax incentives offered to attract investment?

As I pointed out - the top 1% pay 24% of the income tax. You only need to have a few leave / take up tax avoidance, or convince a few more to pay / take up residency here, to make a relatively large impact on total receipts.

I couldn't give a monkeys about the tax rate, so long as it's not regressive. The important thing is maximising the total tax take, not some ideological grab at the rich.

Tron how many bankers left when we taxed their bonuses this year and did we get less money for it than if we had not done it?

I'm told that a good number of bankers were signed up for the golden handcuff treatment before the 50% tax rate came in, and were paid several years wages in advance. They're determined not to pay it.

Posted 2 years ago #
molgrips - Member

If you want examples, high levels of taxation have been tried before (under Wilson/Callaghan?) - go and check just how much revenue they really made.

Different world, different ballgame.

Posted 2 years ago #
porterclough - Member

I hear Basel is pretty popular.

Can't think why, I've been there, it seemed like a bit of a dump to me.

Posted 2 years ago #
Berm Bandit - Member

Re Tax: Common myth Rich get taxed more than poor folk. Incorrect!

We actually all get taxed in the same way except the rich.

So in theory I get a tax free allowance, and so does a rich person
I pay different rates on my income, ie X for the first £10,000, then Y for the next and so forth.... and so does rich person
If I earn what they earn I will also pay what they pay.

But in fact that is not the case at all. What actually happens is that most people pay their taxes without any real input on the subject. Rich people employ vastly expensive accounting snakes to find ways to weasel out of paying their dues, then they offset that cost against.... yes thats right tax! Generally the annual discussion with the accountant will be along the lines of "how much do we need to pay to keep the taxman off my case?"

No one ever paid 95% on their entire income. It was a top rate of income tax of 83% on earned income over £20,000. In 1974 £20000 was worth something like £249,000 now. So only earnings over the 1/4mill would get taxed at that rate. If you were also getting unearned income over that level, i.e. interest or dividends for example then there was an additional 15% surcharge on those only. Same for me when I earned over that level!

However what the Trons of this world singularly fail to understand is that those people rarely, and only if stupid pay that tax. There are a 1001 ways to avoid it.

So fair for everyone .....Right?

Posted 2 years ago #
TandemJeremy - Member

Tron - thats why we should be putting a lot of effort in to fighting tax avaoidence - they will try to minimise tax yeas - of course - but leave - no.

Absolutely no evidence to back up your assertions again. The very fact Frankfurt remains a financial centre despite much heavier taxation is a strong indicator you are wrong.

Posted 2 years ago #
tron - Member

However what the Trons of this world singularly fail to understand is that those people rarely, and only if stupid pay that tax. There are a 1001 ways to avoid it.

I've spent quite a bit of time in this thread explaining that the rich seek to avoid tax, and so the best way to collect is to not charge them horrendous rates, and use a simple tax code to remove loopholes.

Posted 2 years ago #
tron - Member

Tron - thats why we should be putting a lot of effort in to fighting tax avaoidence - they will try to minimise tax yeas - of course - but leave - no.

Have a read about the Swedish wealth tax and its abolition in 2007.

Posted 2 years ago #
Junkyard - Member

yes when people avoid the law we should change the law to reflect their behaviour a principle you apply solely to this area and to no other law avoiders. TJ and I suggest we enforce the law more adequately which is waht we do in all other areas wher epople avoid the law say ike benefit cheats or criminals etc. We dont say they are cunning and will try and avoid it so lets accomodate them do we.
BB Tron has never said that FWIW I dont think any one has we accept avoidanc eoccurs Tron want sto be symapthetic to the ubber rich avoidanc epaying tax TJ and I want to tax them [ not till they blled like Tron thinks] but farily as they are very rich and have mor emoney than they could possibly need or spend
No point carrying on Tron you give no evidence it is all like this

I'm told that a good number of bankers were signed up for the golden handcuff treatment before the 50% tax rate came in, and were paid several years wages in advance

Which is anecedotal at best and BS at worst - I am sure there is some truth in it as people do try and avoid tax but can we not just make it very difficult for them to do this and keep closing the loopholes till there are none left?

Have a read about the Swedish wealth tax and its abolition in 2007 by the newly elected right wing government ...fixed it for you !!!
Politics not evidence

Posted 2 years ago #
gonefishin - Member

I am not talking about the return to the punitive 95% of tax but just getting people to pay their fare share.

Right TJ, I really can't let you get away with that comment without a response. I'll be honest and say that last year I earned over £100000 which is about 4x the national average and by anyone's definition makes me "rich". I've done the sums using the online on the HMRC site and it says that for that year I paid a total of around £36500 in combined income tax and NI contributions which corresponds to about 35% of my wage. For comparison I also calculated the income tax and NI for someone on the average wage which came out at about £6100 or 23% of their wage. Can you please explain to me how I have not paid my fair share because as far as I can tell I paid more than my fair share?

I should point out that I could pay significantly less in tax and NI than I currently do by using methods that tron has pointed out but I choose not to as I believe in paying my way. I do however object to comments that somehow imply that I don't pay my fair share of tax.

Posted 2 years ago #
TandemJeremy - Member

Tron - The best way to collect tax is not to have any loopholes - not to reduce rates - we are already low tax! More tax inspectors with more powers and punative action on avoidence. You have asserted plenty - you have explained nothing.

Its like saying that we should leave all cars unlocked so thieves can take them easily as they are going to steal them anyway

There is no evidence at all to back up your assertions.

Posted 2 years ago #
tron - Member

Can you please explain to me how I have not paid my fair share because as far as I can tell I paid more than my fair share?

The argument as I understand it is that people on low income spend a greater proportion of their income on VAT chargeable goods and other taxes (Road Fund Licence, Fuel Duty, VAT on heating etc.). Not to mention booze and fags, which are generally consumed most by the working and upper classes, but less by the middle classes.

Which means that they actually end up handing over a greater proportion of their wages to the treasury than a higher rate taxpayer.

Posted 2 years ago #
TandemJeremy - Member

gonefishing - I doubt your calculations as I am less than average wage and pay around 30% of my income. However I accept your point.

Its all about how you define fair - I would say yours is about right - maybe could pay a point or two more but not much.- I'd like to see people richer than you pay more - you are probably in the area where people pay most - higher earners are paying less as the NI ceiling takes effect.

Good job you are not in germany where you would be paying 60% on twice national average wage.

As I say - Its all about how you define fair - I would like tax to be much more progressive. Less at the bottom but more at the top. neutral point around twice average earnings - so folk on £50 000 pa pay around the same, people earning more pay more, people earning less pay less.

Posted 2 years ago #
joemarshall - Member

Because, as I pointed out, we cannot stop somebody leaving the country, which is the last resort for someone who wants to reduce their tax bill.

People supporting tax cuts are always saying that, but it is hard to know how much evidence there is in support of it - the threatened massive exodus after the 50% tax rate never seemed to actually materialise. Realistically, we would have to have very very high personal taxes to convince anyone who wants an interesting life that they'd rather live in Frankfurt / Basel than in London.

Joe

Posted 2 years ago #
tron - Member

I'm astonished to see that I seem to have out lefted TJ on regressive tax in the UK.

More tax inspectors with more powers and punative action on avoidence.

On the other hand, a simple tax code (the standard text on tax has doubled in size over the last 10 years or so), would allow us to inspect more thoroughly with the same number of inspectors, and reduce money used to pay for tax avoidance, which is a rather unproductive industry.

Posted 2 years ago #
kimbers - Member

by using some random web tax calculators

if you earn 200000k in the UK you get an annual income of 101k a year

and in germany 137K a year

http://www.parmentier.de/steuer/incometax.htm
http://www.pru.co.uk/guides_tools/calcs/income_tax/

depending on cost of living and whatever other taxes- uk VAT is 17.5 % germany is 19%
i believe german inheritence tax is somewhat higher too, and you have to take out medical insurance but im not sure what that is?

germans seem to be better off

Posted 2 years ago #
mefty - Member

Having worked in the tax industry in both the Netherlands and the UK, my own experience is that there is much more tax avoidance in the Netherlands than the UK (and certainly more tax advisers as a proportion of population). It is also misleading to look at headline tax rates, there are far more tax reliefs in the Netherlands and Germany than there are in this country. For instance, mortgage interest is still fully tax deductible.

I also think the assumption huge amounts can be gained from cracking down on tax avoidance is flawed and this was supported in the election campaign by the former head of the anti avoidance unit who wrote as follows
Dear Sir,

Savings from closing tax avoidance loopholes are likely to produce rather less tax than Nick Clegg’s Liberal Democrats suggest. If there were a simple solution to the tax avoidance problem one would have been found over the last few years.

Despite the efforts of HMRC, no one has yet produced a “silver bullet” which will wipe out avoidance of direct taxes “at a stroke.” The best HMRC can do is to rely on the tax avoidance scheme disclosure rules to sniff out avoidance schemes, and then legislate to close them down.

Even when there is a case which HMRC considers is worthy of challenge, it has to be brought before the Courts where it can be many years before the final outcome is known. And, crucially, that depends on convincing the Judges of the correctness of HMRC’s arguments.

The idea that tax savings of the size promised by Nick Clegg are achievable is, to my mind very doubtful, and really does not stand up to close scrutiny.

Yours faithfully

Chris Tailby CBE
Director, HM Revenue and Customs Anti-Avoidance Group, 2004-2009.

Posted 2 years ago #
mrl - Member

TJ i think it is your maths that a wrong. Use this website http://www.listentotaxman.com/index.php

It comes out as being pretty accurate when you compare it to your p60 (I think that it the right one?). Someone on 20k pays about 22% tax (NI and income) someone on 25 pays about 24% someone on 100k pays about 35%. I have assumed no SAYE or pension payments. Obliviously someone on the higher rate is going to see more relief on pension payments but I doubt it will be much.

Posted 2 years ago #
Inbred456 - Member

Dave and Nick's new Anthem! Go on my sons.

http://www.youtube.com/watch?v=DG9AkIkSTV8

Posted 2 years ago #