Sunday, August 14, 2011

Torries to pull Nations pants down to aid the plight of the well off have

George Osborne seeks Revenue check on 50p tax rate

George Osbourne seems set to support Borris Johnsons recent campaign to subsidise to well off with a generous tax break. Mr Osbourne said of the recent social problems affecting the huge and growing economic underclass of England, 'f*ck you, f&ck you all' and when asked to justify the urgency of cuts to social services for the poor in order fund the 'deficit' reduction plan, while supporting a tax cut for his chums,he replied, 'f*ck you'. Its funny, given that the 50p rate clearly brings in no revenue for the Government, that people would bother objecting to paying it. If nothing is brought in, surely nobody is having to pay it, and therefore what is the benefit of getting rid of it?

Posted by tick tock @ 11:55 AM (1829 views)
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18 thoughts on “Torries to pull Nations pants down to aid the plight of the well off have

  • We're All In This Together says:

    George says there’s a danger rich people will leave. Er…

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  • “If nothing is brought in, surely nobody is having to pay it, and therefore what is the benefit of getting rid of it?”

    No more money is raised because some people are leaving/avoiding it, laffer curve and all that.

    It’s better to lower it and get more people paying again than squeezing the pips out of the people that remain

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  • mark wadsworth says:

    “If nothing is brought in, surely nobody is having to pay it, and therefore what is the benefit of getting rid of it?”

    Laffer curve effects.

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  • “If nothing is brought in, surely nobody is having to pay it, and therefore what is the benefit of getting rid of it?”

    To stop people who run businesses moving abroad, or encourage some of them to come back. When the 50% tax band was announced, I was living in the far east, but had just agreed to relocate to the UK. The 50% tax put an end to that plan. Good for Britain?

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  • Laffer curve effects.

    LOL

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  • It’s a bit more than the Laffer curve..

    ..although it grates a bit, there are quite a lot of people (and not just Brits) who are not rich enough to go wholly offshore with their tax affairs, but do have some options as to where they domicile themselves for tax.

    Making the UK an attractive place for those who have six figure incomes to pay their income tax can bring in a lot of dosh..

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  • “Subsidise”. No subsidies are on offer. Osborne is proposing to take a little less than 50% out of what these people earn. You use of the word “subsidise” betrays the unspoken but pernicious left-wing assumption that everything we earn is the State’s, and then they generously let us have some small part of it back.

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  • monty032,

    Agree – the word ‘subsidise’ is completely wrong – if we attract the euro-rich into paying their taxes here, then it is they who will be subsidising everyone else..

    This could actually work rather well if the eurozone heads towards fiscal union – there would almost certainly have to be ‘harmonised’ tax rates in the eurozone, which would give the UK the opportiunity to profit from europe in the same way the Channel Islands have profited from the Uk..

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  • I’ve seen no evidence for the Laffer effect, though it is often trotted out in support of low taxes for the wealthy (ignoring the effect of high total taxes on the low paid) by – surprise, surprise – the wealthy.

    The trouble is few people are prepared to address the matter with any seriousness, so we get the casual snipes of the “left-wing assumptions” kind and other guff, while the high paid (steadily getting higher paid) demand low taxes or they’ll swan off to some tax exile, which of course our something-sick-in-the-country Govt laps up.

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  • Yawn, how many people with six figure incomes actually pay six figure tax. Any sane person earning that much dosh/wonga or whatever will pay somebody to effectively manage their tax position etc.

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  • I think MW should pop round to GO’s gaffe and tell him about LVT.

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  • “I’ve seen no evidence for the Laffer effect, though it is often trotted out in support of low taxes for the wealthy (ignoring the effect of high total taxes on the low paid) by – surprise, surprise – the wealthy.”

    Apart from the fact its a mathematical certainty(ie at zero there is no tax take and at 100% its likely to be zero)and the only argument is about the shape of the curve for an economy I see plenty of evidence amongst the people I deal with and also myself.At 50 % marginal rate (plus Nic)I am just not prepared to bother to put in the extra effort and time to earn extra income so that HMRC can take a minimum of half of it leaving me with 50% at most so that I can then spend it and pay even more tax through vat and the thousands of purchase taxes introduced by the previous government .

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  • Dontgetfooledagain says:

    The debate is around the wealth of the country against the wealth of the people in the country and the distrubution of that wealth. UK has one of the lowest personal tax burdens in Europe. If the tax burden on the rich was increased and they really did leave the country. There would be less rich people to pay for expensive houses and house prices would come down. We may be earning no more or even be earning less, but if more of the population could afford housing I would suggest we would have a “richer” life. I thought that was what the majority of the people on this site were hoping for.

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  • mark wadsworth says:

    Of course there are Laffer Curve effects!!

    I’m not just trotting that out in order to plead for tax cuts for “the wealthy” (however defined), because as we all well know, the highest marginal rates are suffered by people in the bottom half of the income scale, go have a look at the DWP’s tax benefit model tables – the overall average marginal rate on those people (taking into account PAYE, VAT, benefits withdrawal) is around eighty per cent, i.e. a family where Dad earns £25,000 a year gross is in fact only £5,000 better off that if he were unemployed.

    So what I am mainly arguing is that if we reduced means testing (or abolished it altogether and had a Citizen’s Income for everybody, just like we have Child Benefit for everybody) then the overall cash cost of welfare payments less additional PAYE received would go down. Not to mention the wider social advantages of having more people in work. Win win!

    Interestingly, evidence from lots of different countries over the past few decades has shown that the revenue maximising rate of capital gains tax is about ten per cent. That’s advantage number 9,864 of Land Value Tax – there are no Laffer Effects, and to the extent that LVT replaces taxes on income and output, the economy grows to everybody’s benefit without total revenues falling by one penny.

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  • At tax rates of 50% and above you are working for the Govt , not yourself .

    Nobody should pay 50% tax on earnings .

    We can’t go on spending more and more money we don’t have . No Govt has really got public spending under control and this one won’t either despite it saying it was going to deal with the deficit in a single term .

    For all the rhetoric about savage cuts the only thing which has been cut savagely is the armed forces .

    Why is it that the 3 major parties and the BBC are happy to perpetuate this deception of tough cuts when the figures show public spending is still increasing in real terms .

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  • [email protected]

    “and had a Citizen’s Income for everybody”

    It would be everybody , not just British Citizens ; illegal immigrants , Eastern European workers .

    No doubt it would even lead to payments to Indian workers on ICT visa’s who are supposed to be earning over the threshold anyway .

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  • MW – brilliant idea – give everyone Citizen’s Income!!

    Maybe some of these yobs will finally see the point in getting a job. And some of the rest of us will stop doing ‘non-jobs’. Retrenchment arguments have less strength too. Basically a more mobile and efficient job market.

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