Originally posted by d000hg
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Labour would re-introduce the 50p tax rate
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Originally posted by AtW View PostYes I can and yes it is - it's part of the employee cost to the business and represents true tax on employment.
Besides, employer's NI is offset against company tax anyway.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 doesn't matter one jot to an employee what their employer has to pay the government. What matters is what % of their salary they receive.Comment
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It doesn't matter to employees to the extent that they don't see it but employer's NICs undoubtedly are a tax on working and hiring.
Originally posted by AtW View PostEverybody who pays tax most likely paying at high rate - 20% income + around 25% NI (inc employers) - so 45% tax on everybody who got half decent job.
Cons said they'd unify NICs and income tax which would have nice side effect of dealing with lots of tax dodges whose purpose is to shake off NICs. They said they'll create commission near end of Parliament, ffs - you got elected so do things, don't create meetings before next elections.
Originally posted by d000hg View PostI didn't say it was hard to do (although it can be depending where you want to go), I said it was a big step. I don't believe the majority of people would normally consider moving country at all - although possibly the kind of people earning this much might be a demographic who would consider it more easily?
On the other hand, you have people who see less and less of their earnings in their own pocket. The money could easily matter to them if they have plans of founding a business, building wealth to tide their grandkids over, or any number of other personal motives. Yes, there's people who probably would see it easier to stay here and either just reduce their working hours and make do with less, or work the same or more to meet their aspirations. If they were planning on retiring in some sunny location, some day in the future, why not research doing that now, in a place where they may well pay less tax too? Even somewhere like New Zealand, you'd pay much less tax.
My point is that this is a tax on work no matter how it is sliced, and at the bands it applies, high value work. Some people may make do, accepting a reduction in their leisure time (which economic indicators like GDP or tax pelf won't pick up) and remain as productive or more, to continue supporting the same lifestyle, but this comes at a definite cost to them. To assess how they choose to respond to it, you would have to study it over a longer period of time than just a year, to allow for decisions like those to emigrate, to have their effect. The Laffer curve is well known in economics with regard to how at certain levels of taxation the government actually shoots itself in the foot by taxing more. I would wager it is well below 50%. You could also apply this to IR35, i.e. cast aspersions on HMRC's rather dubious estimates of how much money it 'protects' by factoring in the cost to the economy and the government of losing labour market flexibility and reducing the options available to highly productive segments of the economy, to keep their tax burden at levels that actually border on being reasonable.Last edited by Zero Liability; 27 January 2014, 20:19.Comment
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Originally posted by AtW View PostWhat matters (to people with brain) is overall amount of tax paid on employmentOriginally posted by MaryPoppinsI'd still not breastfeed a naziOriginally posted by vetranUrine is quite nourishingComment
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