50%
Lots of coverage today about the 50% tax rate. The headlines full of the debate about taxing the super wealthy. I am not one to shy away from paying tax. Fair share and all that. Some good points were made. The argument that if tax rates were reduced then more money would be recovered was rightly debunked. The idea that the super rich would bring their money back on shore for a 10% reduction seems unlikely when they can continue to enjoy far lower rates overall where it is now.
But the issue for me is that the 50% tax rate is not for the super rich. It starts at income rates of £150K. Now I am not in any way saying that people who earn well should not pay but people who earn at that level are far far far from super rich. They are people in upper management and senior management right across the country. They have a good living but they are not millionaires. They are not profiting from the misery of others and I doubt very much that they have accountants helping them to avoid the tax.
So perhaps it is time to look at how to tax wealth (real wealth) and stop categorising those who do well with the same people who are earning multi millions and even billions.
But the issue for me is that the 50% tax rate is not for the super rich. It starts at income rates of £150K. Now I am not in any way saying that people who earn well should not pay but people who earn at that level are far far far from super rich. They are people in upper management and senior management right across the country. They have a good living but they are not millionaires. They are not profiting from the misery of others and I doubt very much that they have accountants helping them to avoid the tax.
So perhaps it is time to look at how to tax wealth (real wealth) and stop categorising those who do well with the same people who are earning multi millions and even billions.
posted by So long and thanks for all the fish at
8:09 pm
2 Comments:
An interesting effect of the new tax regime, though, is that the top rate isn't 50%. it's 60%. if you earn between £100k and £120k you will, in effect, pay tax at 60% of the amount above £100k and below £120k. The perverse effect then is that those in control of how their income is reported will strive to earn less than £100k and so pay even less tax than the government anticipated.
Thanks Anon. I was not aware of that but it certainly seems to support the worry that these upper rates of tax are not really effective against the super rich but target the moderately well off.
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