Reply to: Top rate of tax raised to 75%

[Dactylion]

Income tax in UK was higher in the past - 99.25% during World War 2

German was also at war at the time, interesting that "The top personal income tax rate in 1941 was 13.7% in Germany as opposed to 23.7% in Great Britain."

What is your point again?

or

WTF are you on about?

[AtW]

They had lower taxes during WW1 too, which lead to inflation after the war.

Reparations didn't help with that of course.

I reckon losing the war had more to do with inflation than low taxes! And printing money of course!

[Zero Liability]

They had lower taxes during WW1 too, which lead to inflation after the war.

Reparations didn't help with that of course.

I would think the central bank's profligacy had more to do with inflation than low taxes, which simply soak up the additional currency/credit sloshing about.

[AtW]

WTF are you on about?

It appears that Nazi Germany had lower income tax than England during WW2.

[Zero Liability]

Yes but it is only a tax on income so who actually earns more than 1 mln per year as a salary (and I am deliveratly discounting business owners who will as others have said move the money around to avoid paying it)

So you are left with footballers and entertainers really

oh well

probably not as crazy as it sounds and especially for footballers they often agree a fee/salary with clubs which is 'after tax' and it is down to the club to ensure they pay them enough to keep the after tax salary figure..

It's crazy but designed so as to be effectively very limited, is what I think you mean. These sort of headline rates get a lot of support from the envious who want to see the government "punish" the rich (if one thinks footballers or actors are 'overpaid', whatever that means, it's pretty easy to protest that - don't go to their matches or movies! - but I don't think these are the hated rich, anyway, they're too pretty and popular for that), but they rarely are designed to have much of an actual impact on the economy, probably because the political class lacks the conviction of its professed beliefs and only acts so as to benefit itself. A 75% tax rate on the wealthy wouldn't leave them with much of an economy to govern.

It's similar to the US during the '50s, with all the deductions that applied to the very high marginal tax rates so as to leave the effective tax paid by the 'rich' unchanged, and then only a slim minority of them qualified to pay those very high rates to begin with. It helps give the illusion that the gangster class is "doing something", though.

[Doggy Styles]

So it's ok to have 99.25% income tax so long as country is at war? Interesting you say word "coalition", so presumably they had to agree on some middle point for taxation - 99.25%, what do you reckon Cons wanted to set it to - 99.05%, but Labour insisted on 99.50%, so they got 99.25% in the end!??!?!

And what did the National Govt do to tax cheats during those years?

German was also at war at the time, interesting that "The top personal income tax rate in 1941 was 13.7% in Germany as opposed to 23.7% in Great Britain."

Economy of Nazi Germany - Wikipedia, the free encyclopedia

I can't actually remember the tax rate in Soviet Union as I did not work, actually I don't think there was one at all, that's right - 0% income tax - there were some effective compulsory union membership payments but they were small.

WTF are you on about?

[original PM]

Yes but it is only a tax on income so who actually earns more than 1 mln per year as a salary (and I am deliveratly discounting business owners who will as others have said move the money around to avoid paying it)

So you are left with footballers and entertainers really

oh well

probably not as crazy as it sounds and especially for footballers they often agree a fee/salary with clubs which is 'after tax' and it is down to the club to ensure they pay them enough to keep the after tax salary figure..

[OwlHoot]

in france:

BBC News - France's 75% tax rate gains approval by top court

Jesus wept - lefty politicians really don't get it do they?

daft lefty French voters

[AtW]

It was 102% for a while on unearned income.

[AtW]

I suspect that's because there there was 0% pay.

Your suspicions are incorrect.

The problem was actually buying some desireable stuff for the money given - certainly outside Moscow

[KentPhilip]

I can't actually remember the tax rate in Soviet Union as I did not work, actually I don't think there was one at all, that's right - 0% income tax - there were some effective compulsory union membership payments but they were small.

I suspect that's because there there was 0% pay.

[AtW]

The National government, a coalition of all parties. We were at war.

So it's ok to have 99.25% income tax so long as country is at war? Interesting you say word "coalition", so presumably they had to agree on some middle point for taxation - 99.25%, what do you reckon Cons wanted to set it to - 99.05%, but Labour insisted on 99.50%, so they got 99.25% in the end!??!?!

And what did the National Govt do to tax cheats during those years?

German was also at war at the time, interesting that "The top personal income tax rate in 1941 was 13.7% in Germany as opposed to 23.7% in Great Britain."

Economy of Nazi Germany - Wikipedia, the free encyclopedia

I can't actually remember the tax rate in Soviet Union as I did not work, actually I don't think there was one at all, that's right - 0% income tax - there were some effective compulsory union membership payments but they were small.

[hyperD]

And with it being temporary, people earning that kind of money will just work out a way to defer it until taxes go back down.

WHS.

Political grandstanding. Those that have that wealth never do pay that amount.

Remember these are political parasites. They don't give a tulip about important stuff, only their next re-election. If you said you want to abolish politics they'd still enthusiastically endorse it if it meant they'd still be on their gravy train and you'd bung 'em a rent boy in the mix.

It's in their DNA. They can't help it.

The sort of individual that declares they want to be a politician should automatically be barred from ever becoming one.

[Doggy Styles]

99.25% tax is pretty crazy even if it was Inter-Galactic War. Who was in charge during the war here - socialists?

The National government, a coalition of all parties. We were at war.

[AtW]

And with it being temporary, people earning that kind of money will just work out a way to defer it until taxes go back down.

Aye, those who can will defer (or pay in advance) for sure - same as it happened with 50% tax here which was estimated to have raised FA compared to declared target.