Personal tax guarantee

[BoggyMcCBoggyFace]

Won't people earning over 80k just pump the extra into a pension instead, I know a fair few people round the £105k-£115k mark and to avoid the £100k tax hit just put anything above £100k into there pension ?

[d000hg]

Theresa May has said she has "no plans" to raise other taxes after the election, but has so far declined to say whether a manifesto pledge not to raise direct taxes ahead of the 2015 election will be retained."

Even Taxing Labour offers some form of guarantee, and what about Tory Scum? Perhaps May would outdo Labour and lower 45% tax band for those on £50k+

Maybe wait for the manifesto?

John McDonnel is probably the most competent of the opposition front bench - although the bar is pretty low.

This is about as smart as he could get on tax.

The numbers won't add up of course. The problem with taxing the rich - is that there aren't that many of them. Jacking up the rate by 10% won't raise that much cash in the grand scheme of things - certainly not enough to fund their spending promises.

The top few percent contribute a hugely disproportionate fraction of the overall tax take so actually increasing the tax on the top 5-10% does make a meaningful difference. I saw an article on the exact amounts but can't find it. Anyone?

So huge increases in unemployment as big companies relocate to wherever workers are cheaper and corp tax rates are lower.

Vote Labour, vote yourself out of work.

So your approach is just to turn a blind eye to corporate tax dodging on a massive scale? The companies who are in the news aren't hiring a lot of people in the UK anyway, if they were it would be less of a problem.

Won't people earning over 80k just pump the extra into a pension instead, I know a fair few people round the £105k-£115k mark and to avoid the £100k tax hit just put anything above £100k into there pension ?

If you're a salaried employee, do you get to do that pre-tax, to that extent?

[WordIsBond]

So your approach is just to turn a blind eye to corporate tax dodging on a massive scale? The companies who are in the news aren't hiring a lot of people in the UK anyway, if they were it would be less of a problem.

Starbucks
In 2012 Starbucks was employing 8500 people in the UK. Presumably that number is higher now.

Google
In 2015 Google was employing 2500 people in the UK and paying them an average of £160K. The Employers NI on £160K is over £20K. At £20K per head, for 2,500 people, that's £50 million in NI contributions. That doesn't count the Employee NI and income tax.

Amazon
They employ over 15,000 permanent UK employees. They also provide a lot of temporary jobs, which may not provide a living wage but do provide a nice supplementary income for many people in between jobs or just looking for something temporary to supplement their income.

[AtW]

Won't people earning over 80k just pump the extra into a pension instead, I know a fair few people round the £105k-£115k mark and to avoid the £100k tax hit just put anything above £100k into there pension ?

Pension relief will be massively curbed for those "rich" people - they've already pulled it with 45% thresholds.

[AtW]

And this is the worst lot Labour has ever had leading them. By the end of the parliament, we'd see withdrawal of the personal allowance starting at £80K, a 45% additional rate band starting at £100K, 50% starting at probably £125K, below inflation increases in the higher rate band threshold, higher corporation taxes, and higher NI "contributions."

Labour won't get it, Tories will have landslide.

So what Labour doing now is making it easy for Tories to increase income taxes and claim they are increasing them at lower rate than Labour wanted.

I can't see Tories (or Labour) merging Income Tax with NICs, no chance - it would show true level of taxation on income and we can't have that...

[d000hg]

Starbucks
In 2012 Starbucks was employing 8500 people in the UK. Presumably that number is higher now.

Starbucks, or Starbucks franchises?

Google
In 2015 Google was employing 2500 people in the UK and paying them an average of £160K. The Employers NI on £160K is over £20K. At £20K per head, for 2,500 people, that's £50 million in NI contributions. That doesn't count the Employee NI and income tax.

2500 people, £50 million NI, on how many £billion?

Amazon
They employ over 15,000 permanent UK employees. They also provide a lot of temporary jobs, which may not provide a living wage but do provide a nice supplementary income for many people in between jobs or just looking for something temporary to supplement their income.

Right, and Amazon aren't going to stop selling in the UK. If they're told "you have to pay tax in UK income" they will realise they can still turn a profit and continue.

[WordIsBond]

Right, and Amazon aren't going to stop selling in the UK. If they're told "you have to pay tax in UK income" they will realise they can still turn a profit and continue.

Which is hardly the point. You said they weren't employing many people.

The real money-spinners for the UK government are employment/income taxes and VAT. As long as that's rolling in, I'd be just as happy to see corporation tax slashed. Then, there'd be no incentive to move shift profits elsewhere, and more incentive for corporations to locate here, providing employment and employment taxes.

[d000hg]

Lots of them aren't hiring many people... Amazon clearly has to hire people as they actually handle products. But the original claim was these companies would sack all their employees and leave if they had to pay tax on UK profits. Which seems stupid... if they can still make a profit they will remain.

And since you mention VAT, isn't that one of the big areas of controversy... paying all your VAT in a country with the lowest rate?
Will that particular avenue be closed through Brexit?

[Swamp Thing]

Labour won't get it, Tories will have landslide.

So what Labour doing now is making it easy for Tories to increase income taxes and claim they are increasing them at lower rate than Labour wanted.

This is possibly true, but as a non-Labour person, I kind of tip my hat to McDonnell for tactics on the issue, effectively saying to the Tories, "That's what's in our manifesto - now what's yours?". I'll bet the tax on my dividend (before it goes up) that the Tories won't have the balls to come out with as much detail. Instead they'll say we're all on a journey - strong and stable of course. If they do that, then I would expect the Tories over the next 5 years to put tax up more than Labour would have done. And that would be very weird wouldn't it?

[AtW]

This is possibly true, but as a non-Labour person, I kind of tip my hat to McDonnell for tactics on the issue, effectively saying to the Tories, "That's what's in our manifesto - now what's yours?". I'll bet the tax on my dividend (before it goes up) that the Tories won't have the balls to come out with as much detail. Instead they'll say we're all on a journey - strong and stable of course. If they do that, then I would expect the Tories over the next 5 years to put tax up more than Labour would have done. And that would be very weird wouldn't it?

McDonnell is fooking us over even if he does not win - by playing ball for their supposed enemy making it easier for them to increase taxes and claim innocence.

The real irony is that unless they increase tax massively they won't raise much more money - particularly in light of Brexit that will certainly force some rich people to move, perhaps to France where they might start getting sensible taxation.