60% income tax rate

ruggedtoast

thelawnet wrote: »

Back to the 70s for Labour. Expect dead bodies in the streets soon.

Presumably those affected will be so impoverished they'll starve to death? Take to killing other people to eat them?

I honestly dont care about people earning 100k plus.

wolvoman

ruggedtoast wrote: »

Presumably those affected will be so impoverished they'll starve to death? Take to killing other people to eat them?

I honestly dont care about people earning 100k plus.

You will when they decide to up and move their company to Switzerland or Dubai.

And then they decide they can offshore their lower-paid staff to India or China.

And then their corporation taxes are no longer paid to the UK Treasury.

And then you need to pay more tax to make up for the shortfall.

StevieJ

wolvoman wrote: »

You will when they decide to up and move their company to Switzerland or Dubai.

And then they decide they can offshore their lower-paid staff to India or China.

And then their corporation taxes are no longer paid to the UK Treasury.

And then you need to pay more tax to make up for the shortfall.

If you believe all that is going to happen based on yesterdays budget you are on another planet.

FoxtonsRIP

Why only a 50% higher tax rate? It should be at least 75%. Even after that they'd still be earning many times the average person

hermanmunster_3

FoxtonsRIP wrote: »

Why only a 50% higher tax rate? It should be at least 75%. Even after that they'd still be earning many times the average person

would I work all night for 22% (after superann and 75% tax) of the hourly rate?- no way!

Graham_Devon

FoxtonsRIP wrote: »

Why only a 50% higher tax rate? It should be at least 75%. Even after that they'd still be earning many times the average person

What would be the point in training for a good job and then working, if all your money was going to be taken off you in tax?

We'd have no doctors, consultants etc left.

If they are going to earn the average wage, they may aswell not bother with all the training and loans to complete that training, and jump straight into an admin job.

lostinrates

FoxtonsRIP wrote: »

Why only a 50% higher tax rate? It should be at least 75%. Even after that they'd still be earning many times the average person

Isnt it about three times...before tax? Thats not really many. In some jobs its also for many more hours, and having accured many more debts to be skilled enough.

JasonLVC

Countless studies into taxation (both EU and US based) generally show that where the tax take goes to high, those that can, will find ways to avoid paying the tax all together.

Hence, we already have very rich people who'll go off-shore, be domicilied elsewhere and set up trust and holding companies to avoid paying 40% tax rates. (ie, most footballers don't get a salary, they set up a company and draw a dividend at a lower tax rate than the average bloke on £15k a year).

By increasing the tax to 50%, all this does is encourage more high earners to seek out ways to avoid paying any tax at all.

My view is that it is better to have a rate of tax for high earners that is high enough to be more than the rest of us, but not so high that it is worth their time in engaging in tax avoidance practices. If it costs you £5k to save £6k tax then it ain't worth it. But if it saves you £15k then a big incentive to dodge - and the government get nothing at all, rather than the 50% they were hoping for.

Of this estimated tax take Darling reckons he'll get, I'd bet he'll obly get half of that as he forces more high earners into tax avoidance.

kennyboy66_2

JasonLVC wrote: »

ie, most footballers don't get a salary, they set up a company and draw a dividend at a lower tax rate than the average bloke on £15k a year).

Complete rubbish.

Players are on PAYE just like everyone else for most of the payments they receive from clubs.

Some foreign players set up offshore companies to handles sponsorship income or "image rights".
Dennis Bergkamp won a case against IR a few years ago.

Sir_Humphrey

What really angers me about these whinging bankers is that some of the tax rise was made necessary due to the bank bailouts.

They get billions from the taxpayer to save their jobs, yet moan about paying a bit more tax.

I do actually think that all bankers are that sociopathic, but if those that are decide to leave, then they can sod off to be frank.