I can never work out why that is "fair"

is it also unfair that the NI rate drops for higher earners

 

i'm assuming this is still the case

The facts don't your support your perspective. History shows that reducing the tax rate brings a greater return.

 

 

"Fair"

 

 

Please explain how 45% is more fair than, for example,30%

 

If you pay 30% x £300,000, is that more fair than paying 45% x £300,000? Or 52%? Or 83%?

 

If you are claiming that reducing tax rates might stimulate the economy to the extent that the tax take goes up... fine. Maybe that could be the case. Who knows.

 

But that's absolutely not the same as saying if you make tax rates lower, the rich will not strive to avoid them. Which is what you said. There is a whole financial advice industry and anyone with a few quid will seek this advice. Financial advisers / accountants won't say 'well, that rate of tax seems quite fair, let's just pay up and not actively find ways to pay less tax'. That's naive in the extreme.

 

 

On the 'fair' thing, you're proving my point, you can't apply an adjective to an arbitrary number can you? What we do know is that the government is spending more than it takes.

Make our ridiculously over complicated tax system more simple and there would be less loopholes available for some to exploit.

is it also unfair that the NI rate drops for higher earners

 

i'm assuming this is still the case

Thats only after they've paid a big chunk in. However I would sooner have 1% of a £1m than 13% off 20k.

If you are claiming that reducing tax rates might stimulate the economy to the extent that the tax take goes up... fine. Maybe that could be the case. Who knows.

 

But that's absolutely not the same as saying if you make tax rates lower, the rich will not strive to avoid them. Which is what you said. There is a whole financial advice industry and anyone with a few quid will seek this advice. Financial advisers / accountants won't say 'well, that rate of tax seems quite fair, let's just pay up and not actively find ways to pay less tax'. That's naive in the extreme.

 

 

On the 'fair' thing, you're proving my point, you can't apply an adjective to an arbitrary number can you? What we do know is that the government is spending more than it takes.

 

 

No, I'm saying that increasing tax rates barely raises extra cash, so the imposition of higher rates is primarily political

 

 

http://fullfact.org/articles/top_rate_tax_50p_Treasury_revenue-27956

 

 

It is proven that reducing rates means that the win in taking advice is reduced, so that fewer do it and the reduction in take is marginal.

 

I 100% take your point that the government spends too much (thanks, G Brown) and this is unsustainable

Edited December 10, 201312 yr by boltondiver

is it also unfair that the NI rate drops for higher earners

 

i'm assuming this is still the case

 

As long as NI is pretending to be 'national insurance', rather than just 'more tax' then why would it be fair to be unlimited insurance premiums?

As long as NI is pretending to be 'national insurance', rather than just 'more tax' then why would it be fair to be unlimited insurance premiums?

 

 

but it is 'more tax'