Labour Vs Coalition policy

Wookster

Today's Telegraph states that the number of tax payers declaring over £1million dropped from 16,000 to 6,000 just before the last election.

For all the shrill voices from all the Labour MPs, it would seem that their flagship 50p tax rate does not actually work. Following a reduction of the top rate, the number of people declaring over £1million of income has increased to 10,000.

This is a clear example of Labour's tax the rich policies actually leading to lower tax revenues for the treasury.

Full article here: http://www.telegraph.co.uk/news/politics/9707029/Two-thirds-of-millionaires-left-Britain-to-avoid-50p-tax-rate.html

CLAPTON

Wookster wrote: »

Today's Telegraph states that the number of tax payers declaring over £1million dropped from 16,000 to 6,000 just before the last election.

For all the shrill voices from all the Labour MPs, it would seem that their flagship 50p tax rate does not actually work. Following a reduction of the top rate, the number of people declaring over £1million of income has increased to 10,000.

This is a clear example of Labour's tax the rich policies actually leading to lower tax revenues for the treasury.

Full article here: http://www.telegraph.co.uk/news/politics/9707029/Two-thirds-of-millionaires-left-Britain-to-avoid-50p-tax-rate.html

The 50p rate was announced in advance for implementation in the following April.
people with more than two brain cells (including the Telegraph at that time) predicted that people would bring forward bonus and other income into the then current tax year.

So a 100% preidctable result was that tax would go up in the then current tax year and fall in the next.

Dave and George have now announced in advance that the 50 tax rate decreases next april to 45%

A 100% certain prediciton is that people will now DELAY bonus and additional income streams until after april

This will totally PROVE that higher tax rates lead to low tax returns.

angrypirate

CLAPTON wrote: »

The 50p rate was announced in advance for implementation in the following April.
people with more than two brain cells (including the Telegraph at that time) predicted that people would bring forward bonus and other income into the then current tax year.

So a 100% preidctable result was that tax would go up in the then current tax year and fall in the next.

Dave and George have now announced in advance that the 50 tax rate decreases next april to 45%

A 100% certain prediciton is that people will now DELAY bonus and additional income streams until after april

This will totally PROVE that higher tax rates lead to low tax returns.

And I am sure people didnt fiddle their accounts offshore or their pensions such to reduce their salaries below 1million as far as the HMRC could see. Im also guessing you think the Laffer curve is a load of tosh?

StevieJ

Wookster wrote: »

Today's Telegraph states that the number of tax payers declaring over £1million dropped from 16,000 to 6,000 just before the last election.

They must have been worried that the Tories would gain power and cleared off

StevieJ

angrypirate wrote: »

And I am sure people didnt fiddle their accounts offshore or their pensions such to reduce their salaries below 1million as far as the HMRC could see. Im also guessing you think the Laffer curve is a load of tosh?

Do you reckon there is a Laffer curve for benefit fraud as well as tax fraud?

CLAPTON

angrypirate wrote: »

And I am sure people didnt fiddle their accounts offshore or their pensions such to reduce their salaries below 1million as far as the HMRC could see. Im also guessing you think the Laffer curve is a load of tosh?

I think the laffer curve makes a lot of sense.
I fully believe that somewhat there is a point below which increasing tax rates increased overall tax and above which reduces overall tax take.

What has that got do with the observation that if one knows in advance how tax rates will change then people will minimise their tax by either bring forward or delaying their income.

It is no different to noting that when house stamp duty was suspended people brought forward purchases or when we had the car scrappage scheme people brought forward car purchases.

I've no idea what your first sentance means or your reference to £1 million salaries.

The_White_Horse

since the loss of my child benefit I have had to change a few things around. one of the major impacts is that instead of getting X amount of child benefit, I have opted to sacrifice quite a bit of salary to my pension, which now attracts 40% tax relief and I still get child benefit. The rest I receive as dividend income.

Well done Osbourne you inept c**t. You have actually cost the taxpayer more - in my case anyway.

Hateful weasel of a man, and a hateful discriminative half baked policy.

BertieUK

The_White_Horse wrote: »

Well done Osbourne you inept c**t. You have actually cost the taxpayer more - in my case anyway.

Hateful weasel of a man, and a hateful discriminative half baked policy.

A very apt description I must say....

Generali

StevieJ wrote: »

Do you reckon there is a Laffer curve for benefit fraud as well as tax fraud?

If my boss offers me overtime and I'll lose 75% of it to the Government (as is currently the case in France for high earners) I won't do the overtime. Does that make me a tax fraudster?

The_White_Horse

Generali wrote: »

If my boss offers me overtime and I'll lose 75% of it to the Government (as is currently the case in France for high earners) I won't do the overtime. Does that make me a tax fraudster?

probably does in the twisted mind of the lefty.

Kennyboy66

Generali wrote: »

If my boss offers me overtime and I'll lose 75% of it to the Government (as is currently the case in France for high earners) I won't do the overtime. Does that make me a tax fraudster?

75% tax is a dumb idea, but I doubt too many people caught in it (well none actually) are thinking "do I come in saturday and claim overtime".