A post of yours I actually agree with
What do I say that you tend to find you disagree with?
Proposed change to the tax system, 30% rate for all....
- Thread starter Spit
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What do I say that you tend to find you disagree with?
I don't understand that. Are you saying individuals would have to keep some sort of P&L account and then pay tax only on the "profit" (which is notoriously easy to avoid)?
No, what I'm saying is that under the purposal (of which I don't agree with everything), a hell of a lot more revenue streams are taxed or increased tax. There would be far far less legal loopholes for self employed/rich to shift pay into a non tax or very low tax form of income. Therefore total tax taken from these people will massively increase.
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How would it not? 30% is less than 45%. You're making a big assertion that reducing the tax rate by that much would result in a 10x increase in declared earnings which there simply isn't the evidence for.
The point you are missing and as Glaucus says, other income streams are taxed at 30% as well, so share dividends, capital gains etc which is currently lower than 30% would be increased. As wealthy people are more likely to have share portfolios, investments etc they would be taxed more on them.
Fair enough but I'm skeptical that this bring in as much extra income as Glaucus thinks.
It would bring in phanominal amounts of money. You wouldn't be able to pay yourself 200k wage and the rest in dividends and other legal tax avoiding ways. Actual figure I gave was of course pulled out of thin air.
Nor could builders/contractors and such like, write of 90% of their tax bill. Again figures are representative and not actual. Seeing as you're a little confused.
Nor could builders/contractors and such like, write of 90% of their tax bill. Again figures are representative and not actual. Seeing as you're a little confused.
But you would still be able to for example, sign your company over to your wife; a Monaco resident, and channel all your earnings to her and not pay UK tax at all.
That woud depend on what was implemented.
And when he recieved money from his wife he would have to pay tax on it. But how woud he get is money out of the uk to begin with, without I currying tax, with such a proposal. Such a proposal blocks these sort of loop holes.
And when he recieved money from his wife he would have to pay tax on it. But how woud he get is money out of the uk to begin with, without I currying tax, with such a proposal. Such a proposal blocks these sort of loop holes.
Soldato
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I've never understood why capital gains aren't taxed the same as income.
Soldato
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When has 'because some people might still try to do X' been a reason not to try improve something?
Seems like a gaff to me, calling it 'simplified' when the current tax system really isn't that hard to figure out anyway.
Don't get me wrong, I'd be peeved having to pay the top rate of tax as well. But I can't help but think to concur with those in this thread who only see this a means to which the rich can cut their own tax.
Don't get me wrong, I'd be peeved having to pay the top rate of tax as well. But I can't help but think to concur with those in this thread who only see this a means to which the rich can cut their own tax.
Don't see a problem with that tbh... everyone is paying the same rate on their income - if you want more/want disposable income then work harder/get a better job/improve your skill set etc... IMO this way is fairer - everyone treated equally, all sources of revenue taxed the same way whether from your investments or your salary. No more registering yourself as a company nd paying yourself in mostly dividends etc.. Yes poor people will spend a higher portion of their income on living expenses... so what... they're paying the same prices, paying the same rate of tax.. if you want more then go earn more.
FWIW I'm all for clamping down on trust funds and imposing harsher inheritance/estate taxes the transfer of wealth is fair game for harsh taxation if we want a meritocracy - penalizing people who are generating wealth on the other hand is unfair IMO
You appear to be arguing that this system would instantly result in people who currently have an income of £1M a year getting £10M a year instead. I see no sense in your argument.
The point of this system is to make rich people richer by cutting the amount of tax they pay and then by giving them control over key infrastructure by privatising it once the state can no longer afford to run it. Pulling £9M so obviously out of the air is a farcically incompetent attempt to cover that up.
If you don't think it's a complex problem, you haven't understood it.
tax bands?
and all the other sources of income being hit too.
no more taking a salary of $1 as a ceo to avoid tax.
Read the thread and no I haven't. If you can't see or understand that's not an actual figure then really.
Also I haven't assumed they get a pay increased, they ill however pay far more taxi on "income." that is either tax free or low tax. I have not under any point said there income will increase. Only that the amount that would no be taxable is far far higher and far harder to avoid.
It doesn't have to be complex, it's very complex at the moment, due to different rates and handling different incomes differently.
Soldato
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We have a two tier system in gibraltar. One which is based on allowences. You get dedcutions if you married, have kids or have a morgauge, life insurance. You can apply for the gross base system were you are taxed at a flat 25%. The income tax office will tell you which system works out best for you. There is no vat,inheritence tax, tax on savings or intrest.
Soldato
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For the 1000th time, we don't live in a meritocracy! We have a market-driven economy which includes salary levels.
There can also only be a finite amount of people doing a certain job. So if people take issue with some of the more obscene bankers bonuses they should all just stop moaning and go to Uni to do a finance degree? What happens then when we run out of plumbers or teachers because everybody is training to be a banker?