50% tax rate is damaging the economy.

[gingerjedi]

They could always move to France: BBC News - French election: Hollande wants 75% tax on top earners

[Doggy Styles]

Why should I pay best part of 5000 on my 25K earnings when these people only pay 400,000 on their million?

And they use private health leaving wasted empty beds in the NHS.

And they send their kids to private school leaving empty places in state school classes.

Squeeze 'em 'til the pips squeak I say. It's only fair. If they want to go abroad let 'em.

[d000hg]

You are quite right of course that vested interests are prevailing here. It does'nt bother me as an employer because I dont pay tax at that rate even if I earn that amount of money and nor do/would you.

If you take 100k from your company through divs and a small salary, don't you still run into the 50% barrier in just the same way as you do when you take divs over the upper threshold? We avoid paying as much tax in total and can pull some tricks but if you earn enough and don't leave it in the company account - surely you end up paying it?
Say a contractor brings in £160k in a year, that's about £125k after CT... would they hit the 50% limit?

[AtW]

I'd sign that letter.

[Arturo Bassick]

Personally I would love to be getting a 2 million pound tax bill.

[Nixon Williams]

Say a contractor brings in £160k in a year, that's about £125k after CT... would they hit the 50% limit?

If the company's profit was £160K, this would be £128K after corporation tax at 20%.

Assuming that the director had paid himself a tax efficient salary of £7,072 and declared all the post-tax profit as dividends, then his gross income would be £149,294!

(128K net dividend equals £142,222 as a gross dividend)

Assuming he had no other income, he would just avoid the 50%rate.

Alan

[DodgyAgent]

It never seems to occur to them to spread the wealth either. Why not reduce their own income by paying their staff more, thus increasing staff loyalty?

I take it you have never built or run a business.

[DodgyAgent]

They could always move to France: BBC News - French election: Hollande wants 75% tax on top earners

According to AtW we should harmonise our taxes so there wont be any point.

[AtW]

According to AtW we should harmonise our taxes so there wont be any point.

Yes I think taxes should be harmonised, this would prevent jackarses like that French guy and Labour to raise taxes at a whim.

[DodgyAgent]

It never seems to occur to them to spread the wealth either. Why not reduce their own income by paying their staff more, thus increasing staff loyalty?

Or alternatively why simply not bother starting a business and just stick with your job?