Willetts targets the older generations

mrginge

economic wrote: »

You are misinterpreting what i said. My dad has paid all his taxes and his current wealth has been built up AFTER paying income taxes etc. Why should my dad pay any more tax on this wealth he has accumulated? Thats double taxation which is grossly unfair to him.

You should tell dad to spend all his money. Then he can be double taxed by VAT instead.

economic

mrginge wrote: »

You should tell dad to spend all his money. Then he can be double taxed by VAT instead.

Thats true. Maybe i should edit my comment and change it to triple taxation

John-K_3

ukcarper wrote: »

But that's not how the majority behave, I'm not saying they should do just that although people would complain if the level was set correctly they would get away with it.

It does not matter how the majority behave. The difference happens at the margins.

Take income tax as an example. My marginal rate is 47%, my total rate is 45%. A 1% rise drops my take-home by 2%. A 5% rise drops it by 10%. Imagine that I am spending half my wages on living a great life, that tax increase now drops my savings by 20%, adding 25% to the years I need to work to hit my target.

That is significant. Probably significant enough that I will toddle off to somewhere else the next time I change jobs. Even more likely is that the recruit from Geneva who was considering the job when I leave will now choose not to take it.

The money I was paying in may well be lost. My firm believes that I brought something unique, which is why I am paid well, that job may just not be replaced in the auK,,or they may shift it to the Geneva branch.

All of a sudden that little 5% gain has resulted in a 100% loss in Tax. Averaged over the whole population it may raise something, or nothing, or lose something.

This is how Tax has to be viewed. Taxpayers are slippery, especially at the high end. We are international, we are more mobile,than the average worker, and if we feel that we are being soaked, some of us tend to go away.

John-K_3

ukcarper wrote: »

No only the only the ones that think money is everything.

This always makes me laugh. Why is it that the people who are demanding that I hand over my money to help them and their mates who then claim that they do not care so much about money.

If you are not driven by it then stop trying to get more of mine!

I had this in the pub back home recently. I was harangued by the group lefty, who was incensed that I dared earn so much more than the average, and he demanded that I justify to him why I should get tomhave so much. When I pointed out that Imhad no need or wish to justify it to him he accused me of being obsessed by money.

He genuinely did not know how to respond when Impointed out that the very core of his politics, and his whole,argument that night had been about money, and that I had never even brought the subject up. He had launched into it off the back of hearing me answer a question about my car...

GreatApe

John-K wrote: »

This always makes me laugh. Why is it that the people who are demanding that I hand over my money to help them and their mates who then claim that they do not care so much about money.

If you are not driven by it then stop trying to get more of mine!

I had this in the pub back home recently. I was harangued by the group lefty, who was incensed that I dared earn so much more than the average, and he demanded that I justify to him why I should get tomhave so much. When I pointed out that Imhad no need or wish to justify it to him he accused me of being obsessed by money.

He genuinely did not know how to respond when Impointed out that the very core of his politics, and his whole,argument that night had been about money, and that I had never even brought the subject up. He had launched into it off the back of hearing me answer a question about my car...

Uneven distribution causing hate is biological it can be seen in monkeys and dogs so can't really blame your mate. Maybe its to do with infant survival. If it throws a tantrums at getting less it has more chance of survival as the parent tries to appease the infants tantrum.

Also inequality isn't as high as most people think especially if you don't measure it in pounds and pence. The great thing about the free market is that it produces high quality goods and services at all price points. You can buy a new car for £6k or £60k you can buy a good smartphone for £100 or £1000 you can go to a restaurant and pay £50 for a Meal or buy the ingridents in tesco for £5

In developed free market nations things are really good for the majority and things do and will continue to to get better and better

GreatApe

John-K wrote: »

It does not matter how the majority behave. The difference happens at the margins.

Take income tax as an example. My marginal rate is 47%, my total rate is 45%. A 1% rise drops my take-home by 2%. A 5% rise drops it by 10%. Imagine that I am spending half my wages on living a great life, that tax increase now drops my savings by 20%, adding 25% to the years I need to work to hit my target.

That is significant. Probably significant enough that I will toddle off to somewhere else the next time I change jobs. Even more likely is that the recruit from Geneva who was considering the job when I leave will now choose not to take it.

The money I was paying in may well be lost. My firm believes that I brought something unique, which is why I am paid well, that job may just not be replaced in the auK,,or they may shift it to the Geneva branch.

All of a sudden that little 5% gain has resulted in a 100% loss in Tax. Averaged over the whole population it may raise something, or nothing, or lose something.

This is how Tax has to be viewed. Taxpayers are slippery, especially at the high end. We are international, we are more mobile,than the average worker, and if we feel that we are being soaked, some of us tend to go away.

No this is a bluff you could already choose to open a business and pay 10% tax rather than your 45% yet you don't becuade probably inertia

Also if you left the pound would be marginally lower so your lost job would likely be replaced by another in the economy exporting something else. Floating currency one of mans best inventions. If it happened on any great scale government would also just put a stop to it how's a 50% import tax on your services sound?

Don't ever think you are so far and beyond the abilities of others it will be a lie you tell yourself

Plus we all pay 45% tax so quit your complaining
At least that's what I tell myself every January and July

economic

GreatApe wrote: »

No this is a bluff you could already choose to open a business and pay 10% tax rather than your 45% yet you don't becuade probably inertia

Also if you left the pound would be marginally lower so your lost job would likely be replaced by another in the economy exporting something else. Floating currency one of mans best inventions. If it happened on any great scale government would also just put a stop to it how's a 50% import tax on your services sound?

Don't ever think you are so far and beyond the abilities of others it will be a lie you tell yourself

Plus we all pay 45% tax so quit your complaining
At least that's what I tell myself every January and July

Well said. Everyone is replaceable.