Reply to: Unearned income surcharge

[HairyArsedBloke]

They should bring back 405 line telly as well.

FFS, the world has moved on and stupid ideas like are well known to be counter-productive. So that'll mean that this bunch will introduce it.

Why should I care. Doesn't apply to me.

[Cyberman]

I think there is a reasonable argument to place something like a gambling tax on those who play the stock market.
It should be reasonably easy to make pension funds exempt.

Some of the biggest areas of "lost" revenue are for non doms. Aren't some of those city bonuses tax free too?

There is already stamp duty on every purchase transaction, and capital gains on annual profits. There is a big risk in stock markets. Take away benefits and there will be a negative effect on the economy, as people avoid risk.

[The Lone Gunman]

Erm isn't that Captial Gains Tax?

Don't know, never played the markets. I understood there was little tax to pay.

[b0redom]

I think there is a reasonable argument to place something like a gambling tax on those who play the stock market.

Erm isn't that Captial Gains Tax?

[The Lone Gunman]

I think there is a reasonable argument to place something like a gambling tax on those who play the stock market.
It should be reasonably easy to make pension funds exempt.

Some of the biggest areas of "lost" revenue are for non doms. Aren't some of those city bonuses tax free too?

[Cyberman]

1. see above: capital is already taxed, income on it is not, and it is not earned income, you didn't work for it.
2. in general, any income other than wages. If you didn't work for it, why shouldn't you pay tax on it?

.... but you did work for it. If you had not worked for it, it would not have been available to invest.

If you then tax this further, nobody will invest in the stock market. That would be a disaster for the economy. Companies thrive on investment!!

[DieScum]

I suppose it depends how you classify work. Making an investment decision, choosing how much risk to take, backing that up with cash is that less work than setting up a website, putting on ads, getting income from the ads.

[Moscow Mule]

Of course it is. But any profit they make on it, like interest or dividends, has not already been taxed.

Put in 1000.00 of taxed money, you pay no more tax on that. Get out 1050.00: 50.00 of that is unearned income, not yet taxed.

What you are suggesting would punish pensioners just for carrying on living...

[Cyberman]

Of course it is. But any profit they make on it, like interest or dividends, has not already been taxed.

Put in 1000.00 of taxed money, you pay no more tax on that. Get out 1050.00: 50.00 of that is unearned income, not yet taxed.

That IS taxed, via capital gains, and savings tax once converted to cash. And when it is spent on goods and services it is taxed yet again. Next !!!

[expat]

You obviously have no clue about creating incentive to work and self-reliance. No wonder we have so many benefit scroungers.

You still haven't answered my question. What is this unearned income that is not taxed ?

1. see above: capital is already taxed, income on it is not, and it is not earned income, you didn't work for it.
2. in general, any income other than wages. If you didn't work for it, why shouldn't you pay tax on it?

[Rantor]

Yes of course. If it is earned income, declare it as such. If it isn't earned, be prepared not to keep as much of it.

I'm intrigued - you're always coming back to this and, if I understood you correctly the other day, you actually do this already i.e. everything you get you treat as salary.

I don't get the principled aspect of it - what is the issue with 'unearned' income that would warrant extra tax. Even leaving aside our tax skullduggery, wouldn't this incentivise people chasing quick (volatile) capital gains rather than getting an income from an investment?

[PRC1964]

Of course it is. But any profit they make on it, like interest or dividends, has not already been taxed.

OK, so if they're being taxed for making a profit through investing their money, would you give them a rebate if their investment failed?

[Cyberman]

hence more taxation necessary. That way everyone is looked after. Only the government can do this.

You obviously have no clue about creating incentive to work and self-reliance. No wonder we have so many benefit scroungers.

You still haven't answered my question. What is this unearned income that is not taxed ?

[expat]

That's the Labour answer. Instead of not wasting the exhorbitant taxes they get, just raise more taxes. Explain what you mean by unearned income that is currently untaxed, because as far as I am concerned, money that people invest is money that they have earned and already paid tax on.

Of course it is. But any profit they make on it, like interest or dividends, has not already been taxed.

Put in 1000.00 of taxed money, you pay no more tax on that. Get out 1050.00: 50.00 of that is unearned income, not yet taxed.

[expat]

That's the Labour answer. Instead of not wasting the exhorbitant taxes they get, just raise more taxes. Explain what you mean by unearned income that is currently untaxed, because as far as I am concerned, money that people invest is money that they have earned and already paid tax on. Then they get done for capital gains tax, inheritance tax, dividends tax, stamp duty, and tax on their pension etc.

Personally, I think that after 30-40 years of working and paying tax, people are entitled to retire, and not into poverty. Unfortunately not many in the private sector have a pension of any note and this means further burdens on other taxpayers.

hence more taxation necessary. That way everyone is looked after. Only the government can do this.