Tax - how much of your gross do you pay?

You're ignoring all the other points where tax is collected though such as VAT, capital gains etc. which will all skew the effective rates.
 
billysielu said:
Everyone pays the same percentage. That is equal because the same rule applies to all people.

It's not one rule if you earn x and another rule if you earn y.
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But you aren't taking into account the weighting of money is not the same.

The first £1 you earn means more to you than the £100,000th - as by then all your necessities have been covered and you are now into just using it for luxuries.

So having a flat rate where you are taxed at the same % level on £20,000 to £200,000 is not 'equal' just because the number in front of the % is the same
 
billysielu said:
Double taxing. Immoral by any measure.
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It's double taxing? When someone inherits they pay the tax on the inheritance - certain caveats aside - they are not then taxed on this again.

And IHT replaces CGT at death, so perhaps there is a call to scrap IHT, and subject everything to CGT before it passes on?
 
Freakbro said:
But you aren't taking into account the weighting of money is not the same.

The first £1 you earn means more to you than the £100,000th - as by then all your necessities have been covered and you are now into just using it for luxuries.

So having a flat rate where you are taxed at the same % level on £20,000 to £200,000 is not 'equal' just because the number in front of the % is the same
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nonsense, a pound is a pound is a pound - not because of whether you starve from not having it, but because you had to work to get it. It's yours, you earnt it. You don't get to take my pound because you think you need a pound more, that's theft.
 
£10,000 means more to someone earning £15,000 than someone earning £80,000. Not sure why this concept is difficult.
 
platypus said:
It's double taxing? When someone inherits they pay the tax on the inheritance - certain caveats aside - they are not then taxed on this again.

And IHT replaces CGT at death, so perhaps there is a call to scrap IHT, and subject everything to CGT before it passes on?
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The income used to purchase the house was taxed.
The house is taxed when inherited.
= Double Taxing. (using a house as an example, all inheritance is the same)
 
Freefaller said:
By the way I'm not suggesting I am right, I concede that I'm technically wrong. However, what I feel is unfair is the tax system. Now I'm all for paying taxes, we need to to make the country run etc... But I just feel some of the rules are daft, like the example I used. I know, I know, I know, doesn't mean it is right, and doesn't mitigate my obligations, or the fact that just because I disagree with something it shouldn't mean I ignore it, but I'm just making the point that I find some of the bureaucracy absolutely ridiculous for such trivialities.


Now sure, you could say, add up all the millions of people (i doubt it would be that many) that do this, and it ends up being a big number... But frankly, the number would still be inconsequential compared to billions wasted already.

Maybe this is me making a stand with my illegal 20p?
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Happily you'll be pleased to hear as Frenchie you don't need to declare it as it's below the de minimis I believe.
 
billysielu said:
Pretty sure there's a case for holding back tax if the government aren't using it properly. E.g. giving it to the EU.
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Unfortunately - however right you may feel it to be - withholding tax is not legal.

billysielu said:
I'm right, so if you think I'm blinkered then you're blinkered...
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You're only right in a very specific, narrow definition of a flat rate tax system.

It doesn't really work out very fair if you actually look into how much 33% of someones salary who earns ~£15,000 is compared to someone who earns, lets say £150,000.
 
billysielu said:
The income used to purchase the house was taxed.
The house is taxed when inherited.
= Double Taxing. (using a house as an example, all inheritance is the same)
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Ah so you mean its taxed twice, rather than double taxation. Ok that's different.

But then take rise in value and ignoring inflation (because I cba to work it out right now) into account for a second. Lets take some arbritary random values from a case I happen to know. Someone who bought their house in 1975 for £8,500, (and payed all the due taxes on it then - first taxation). With the rather silly rise in the housing market, when passed to their children it was worth £1.85m. So using a very simple and quick CGT calculation, the due tax on that is £510k (second taxation). So yes; it is taxed twice, but if it was not subject to IHT, then it would be subject to CGT, as per all other assets in law. Which would you prefer? IHT or CGT?
 
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