Originally posted by AtW
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50% tax rate is damaging the economy.
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Originally posted by BrilloPad View PostMaybe we should become like the Unites States and tax global income until citizenship revoked?Comment
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Originally posted by doodab View PostGiven the number of arguments in favour of abolishing the 50% band so that business can afford to "pay the best people" and attract "top talent", seeing the same posters argue in favour of not paying the little people more because it's a waste of money is disingenuous. The same logic can be applied to any skillset, however valuable. The fact is some organisations DO pay the little people more in order to attract the best and brightest. Others are happier at the peanut munching simian end of the scale.
The central argument of this lot is that the 50% tax rate is harming the economy because it's harming their business because it means they can't be bothered to work harder and grow the business. I'm sure there are plenty of people who will continue to work their arses off and outcompete them.
FWIW, I would get rid of the 50% tax rate and introduce a proper flat tax. But I still think this is a lot of self interested bollocks.
One - who are the "little people" that you talk about?
two - why not make the rate 60% or 70%?
And. The "harder working" competition is more likely to come from abroad where they can keep more of their money without having to work harder.Let us not forget EU open doors immigration benefits IT contractors more than anyoneComment
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Originally posted by AtW View PostI'd agree with that - especially if 15% tax on long term CGT is introducedLet us not forget EU open doors immigration benefits IT contractors more than anyoneComment
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Originally posted by DodgyAgent View PostAnd if it was 50%?Comment
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Originally posted by BrilloPad View PostMaybe we should become like the Unites States and tax global income until citizenship revoked?
I wonder if I can retrospectively renounce it?'Orwell's 1984 was supposed to be a warning, not an instruction manual'. -
Nick Pickles, director of Big Brother Watch.Comment
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Originally posted by doodab View PostThe central argument of this lot is that the 50% tax rate is harming the economy because it's harming their business because it means they can't be bothered to work harder and grow the business. I'm sure there are plenty of people who will continue to work their arses off and outcompete them.Originally posted by MaryPoppinsI'd still not breastfeed a naziOriginally posted by vetranUrine is quite nourishingComment
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Originally posted by d000hg View PostIt's nonsense anyway because it's not like it was 20% and suddenly it's 50%... it's gone from 40-50% after the first £100k. Not a big enough change that I would think "oh well I only get 50% not 60% so it's not worth it now".Comment
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Originally posted by d000hg View PostIt's nonsense anyway because it's not like it was 20% and suddenly it's 50%... it's gone from 40-50% after the first £100k.Comment
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Originally posted by DodgyAgent View PostTwo questions
One - who are the "little people" that you talk about?
two - why not make the rate 60% or 70%?
And. The "harder working" competition is more likely to come from abroad where they can keep more of their money without having to work harder.
Two - I do think there is something fundamentally flawed, unfair if you like, about a marginal tax rate of > 50%.
My point is not that we should keep the 50% rate of tax, because I don't think we should. My point is that their argument for doing away with it is utter cobblers. In fact, I would argue that higher rates of income tax actually encourage investment because they discourage taking profits as income. It certainly works for me. If investing £1500 instead of £3000 on new hardware meant £1500 in my pocket I would have taken it, as it is the difference to my net income is considerably less than that after corporation tax and income tax are accounted for, so investing the money instead makes considerably more sense.
There is some evidence for this in the argument that a 50% tax rate reduces total tax take. Less tax is paid because less income is being taxed because people aren't taking profits as income. If it's not taken as income then it either sits in the company or it's invested.
Also, the 50% tax rate is a temporary state of affairs. By investing that money now instead of taking it as income one can reap the benefits later when the 50% rate is abolished.
Whether this is the best way to encourage investment is a different matter, but it certainly favours investment over profit taking as far as I can see.While you're waiting, read the free novel we sent you. It's a Spanish story about a guy named 'Manual.'Comment
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