Its time to smell the coffee

[Goodegging]

Ray Winstone, the English male actor who built a successful career from playing thugs and criminals said in an interview

the way the British tax system is, it's like you work your nuts off and they give you a big kick in them. It gets to a point when you think you cant afford to live in your own country.

We've a working class in this country that doesnot work anymore. As I see it, you make a choice. You sit on your backside, laze about and claim benefits or you work your b******* off and pay most of what you earn in tax.

.

He has a point there because with the new tax system coming in for people earning over £150k you will pay 45p in every pound to tax man. Although the tax man gets an even bigger cut of yor wage because you will still pay council tax, business rates (if run business), tax on food, petrol, booze, fags, holidays, tax on your clothes and more. I dread to think how much the tax man actually gets from all your money.

p.s the newspaper actually says

from 2011 big cuts in personal allowances and an increase in the top rate to 45p will effectively push the rate of tax for those on £140k to 60p in the pound

Is there anyway to overcome this little kick in the teeth for entrepenuers who are the backbone of wealth creation in his country.

 

[doordistribution]

Move to Monaco!

 

[Simon-M]

The way I see it, at the moment entrepreneurs and the real fat cats won't get touched. I might be wrong, not spoken to the accountant yet.

My income is made up of salary and dividends. As far as I know dividend tax is not changing. Most private business owners don't earn big wages as they rely on making a profit and getting rewarded for their work from that.

Simon

 

[dp0848]

Move to Monaco!

Or Switzerland. Thank goodness I'm married to a Swiss national ........ £55 on EasyJet to Geneva and its goodbye Gordon!!!

 

[ZHopps]

Tax on dividends has changed too - above the new £150k threshold they are taxed at 37.5%, not 32.5% as previously...

 

[Simon-M]

Tax on dividends has changed too - above the new £150k threshold they are taxed at 37.5%, not 32.5% as previously...

Cheeky buggers

 

[jholden]

Labour have to get elected again before these new rates kick in

 

[Will_M]

I bet there are a lot of people who wished they earned 150k plus to worry about paying so much tax !

Be interesting to see how the Tories propose to raise money to cover the PSBR deficit.

 

[adam]

Vote TORY!

 

[Will_M]

Vote TORY!

Did you know Tory is Irish for 'thief' ? Quite appropriate.

 

[vision25]

Be interesting to see how the Tories propose to raise money to cover the PSBR deficit.

That's easy, all they have to do is slash unnecessary govt spending.

Not that they will of course.

How about scrapping these govt departments;

Dept for International Development £5.2bn

Foreign and Commonwealth Office £ 1.8bn

Dept for Business Enterprise & Regulatory Reform £10.2bn

Dept Culture Media and Sport £4.7bn

Dept for Communities and Local Gov £10.4bn (excludes council funding)

And also withdraw from the EU saving £15bn a year.

There you go £47.3bn a year that is unnecessary spending which is almost enough to totally abolish Corporation tax or slash Income Tax by 33%.

Easy really if you beleive in a small state that doesn't boss people around and spend their money for them.

For more on this see

http://caligulaspalace.wordpress.com/2008/04/18/funding-the-abolition-of-income-tax/

and

http://lpuk.org/pages/posts/uk-libe...or-the-abolition-of-personal-income-tax.3.php

 

[Will_M]

That's easy, all they have to do is slash unnecessary govt spending.

Not that they will of course.

How about scrapping these govt departments;

Dept for International Development £5.2bn

Foreign and Commonwealth Office £ 1.8bn

Dept for Business Enterprise & Regulatory Reform £10.2bn

Dept Culture Media and Sport £4.7bn

Dept for Communities and Local Gov £10.4bn (excludes council funding)

And also withdraw from the EU saving £15bn a year.

There you go £47.3bn a year that is unnecessary spending which is almost enough to totally abolish Corporation tax or slash Income Tax by 33%.

Easy really if you beleive in a small state that doesn't boss people around and spend their money for them.

For more on this see

http://caligulaspalace.wordpress.com/2008/04/18/funding-the-abolition-of-income-tax/

and

http://lpuk.org/pages/posts/uk-libe...or-the-abolition-of-personal-income-tax.3.php

See my question was about Conservative policy, not on some bunch of uber-libertarian crackpots.

Why not scrap defence spending (or outsource it to the USA) ? And scrap the NHS ?

Will

 

[vision25]

See my question was about Conservative policy, not on some bunch of uber-libertarian crackpots.

Why not scrap defence spending (or outsource it to the USA) ? And scrap the NHS ?

And I provided details of how the tories *COULD* easily reduce govt spending, not that I expect them to do so.

In any case I pointed out £47bn of unnecessary govt spending and all you have done is point out to everybody what an idiot you are.

It is clear that *YOU* have nothing credible to add so I suggest that you leave the adults to discuss things sensibly.

 

[Will_M]

And I provided details of how the tories *COULD* easily reduce govt spending, not that I expect them to do so.

In any case I pointed out £47bn of unnecessary govt spending and all you have done is point out to everybody what an idiot you are.

It is clear that *YOU* have nothing credible to add so I suggest that you leave the adults to discuss things sensibly.

So by pointing out that you didn't answer my question, I've made myself look an idiot ?

Hmmm ? Weird logic.

You might as well have posted up the Communist Manifesto and said "this is what the tories could do".

I'm asking what they WILL do, not what they could.

 

[Will_M]

Vision 25 - just been reading your blog. You ARE Alan Partridge and I claim my (tax free) £5

Nice to find out that Obama is 'half-cast' and not 'black'.

"It takes a worried man, to sing a worried song......"

 

[DFL]

The higher rate tax is an outrage.

My blog http://www.dormerfinance.co.uk/wordpress/?p=126 gives my thoughts on it all.

 

[GaryMc]

Surely anyone who earns anything legitimately deserves it? Are you saying that they should have introduced a flat tax rate irrespective of income level?Just having a go at playing Devils Advocate

 

[DFL]

Surely anyone who earns anything legitimately deserves it? Are you saying that they should have introduced a flat tax rate irrespective of income level?Just having a go at playing Devils Advocate

Of course everyone deserves it - the point I was making was that the majority of these high earners have got where they are through blood sweat and tears and do not deserve nearly half of their income over the threshold to be taxed. Envy does play a part with peoples views on this but many do not see the non financial cost that these earners have paid and continue to pay.

 

[dp0848]

The higher rate tax is an outrage.

My blog http://www.dormerfinance.co.uk/wordpress/?p=126 gives my thoughts on it all.

An entertaining and well written blog entry as always Jason.

 

[billie1]

I think its time people stop being selfish. Why didn't the 'Fat cats' complain when the lower earners were getting taxed too high. Everyone seems to be thinking of themselves. Lower income earners could not afford to make a decent leaving because of being taxed too high. I think its good people earning £150k and above will be taxed more to give lower earners a break.

 

[adam]

Sadly Billie that is where it falls down. Taxing the higher earners will not bring down taxes on the lower earners. This is not a "tax shift" but a tax increase.

Business people should be careful not to come across as a little silly saying scrap this and scrap that with no real understanding of what is behind it.

By all means, stress that one area is not your priority over an another. If you don't have kids, it doesn't mean you would be sensible in arguing we take away "free" education for 5-16 year olds. You could suggest, you are entitled but I think I am safe to say unless you have a very good alternative and a argument to support your stance, you would look silly for suggesting it.

I beleive we need to seriously raise the level at which tax kicks in so lower earners are not paying big chunks of their money. For instance, the Government says that earning under £5.73 an hour is not a living wage. Therefore if you earn say £10,000 a year for a 37 hour week they say this is wrong as it is less than NMW yet they still tax you on it.

They tax you on an amount of money they freely agree you cannot afford to live on. So if we are going to have a NMW, and in another discussion I can tell you why I don't think we should, then fine, but make the tax limit rise inline with it.

Then if they need to tax high earners more, I am prepared to listen!

Another point though is to ask what these highe earners have done to deserve it. If they started a business and now employ 200 people, then without them 200 people would not be in work, 200 people would not be spending money and paying VAT and nor would they be paying tax. Therefore someone earning £150k may have contributed an awful lot more already.