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Time for a wealth tax to pay for the costs of the pandemic?

Discussion in 'Personal' started by Morninglover, May 29, 2020.

  1. needabreak

    needabreak Star commenter

    I agree and systems need to be put in place and adequately resourced to ensure the taxes due are obtained.
     
    lexus300 likes this.
  2. lexus300

    lexus300 Star commenter

    Perhaps we could have a track and trace app?;)
     
    needabreak likes this.
  3. BillyBobJoe

    BillyBobJoe Lead commenter

    No, the only fair way to do it is based on the impact on ability to afford essentials. When your putative flat tax cuts into the food budget of the poorest but only requires the richest to cut their 4th long haul holiday of the year that's not particularly fair. You can tax the highest incomes at a higher rate fairly because doing so has fair less impact on quality of life. They say money can't buy you happiness, but there is evidence to suggest that this is provably true once you pass around 70k income.
     
    Mangleworzle and Bedlam3 like this.
  4. lexus300

    lexus300 Star commenter

    Everyone gets the PAYE tax allowance currently £12500. After that we are all taxed. Maybe that allowance needs to be adjusted to accommodate cost of food and other essentials? The problem with tiered rates is self evident, those with money avoid taxation so it all ends up punishing the poor. The same % rate for all is fair and manageable IMO.
     
  5. lizziescat

    lizziescat Star commenter

    If the higher rate of tax is lowered to 25% - where would you suggest the shortfall is to be made up Cuts in public expenditure ( which would probably hit the poorest more) or higher rate income tax for all ( say 30% 35%?)

    As has been pointed out the present system means everyone has a tax free amount of 12500 . Are you saying that should be taxed at 25%?

    Why would having lower tax rates for the very wealthy stop any tax avoidance, off shore ing etc. They could still do that if they so wish.

    ( btw there’s a treasury(?) report somewhere that suggests that the no of people who eg move abroad to avoid tax is less than we might imagine from press reports of the famous who do so)

    Edit BTW the higher paid get a very generous reduction in National Insurance payments just 2% of earning compared to 12% .
     
    Last edited: Jun 1, 2020
  6. lexus300

    lexus300 Star commenter

    I did not propose 25% or any other% I used 35% as an example. How much tax do you think the wealthy actually pay as a percentage of their income at present? My guess is well below 25%. Higher rates for higher earners encourages tax avoidance and they are very good at avoidance. Whereas the poor have no way to avoid taxes. The system we currently have fails the poor and encourages the rich to avoid tax. My thoughts are that the singular rate across the board should have NO exceptions if you wish to live, conduct your business and work in the UK.
     
  7. lexus300

    lexus300 Star commenter

    NO
     
  8. lexus300

    lexus300 Star commenter

    No avoidance allowed if you wish to conduct your business, work and live in the UK.
     
  9. lexus300

    lexus300 Star commenter

    Off shoring your income payments? Using virement on loss making to offset tax on profit? the methods used to avoid are infinite (seemingly).
     
  10. LondonCanary

    LondonCanary Star commenter

    National Insurance is paid on income not wealth. Do you think an income of around £50k a year makes someone wealthy?
     
  11. LondonCanary

    LondonCanary Star commenter

    The methods are limited to the self employed at all income levels.
     
  12. shakes1616

    shakes1616 Established commenter

    Are any teachers on 50k?
     
  13. lizziescat

    lizziescat Star commenter

    I was responding to the posts which talk about income apologies if that was not clear.

    I agree that sometimes posts are not always clear about which they refer too.
     
  14. Stiltskin

    Stiltskin Star commenter

    I recognise those houses, I used to teach a short distance from them (and play rugby on the other side)
     
  15. lizziescat

    lizziescat Star commenter

    Isn’t the key problem with any wealth tax is that:

    Wealth management is global ( eg notionally moving to low tax Monaco , moving wealth to more favourable countries )
    Taxation is National.

    So you need cooperation between nations to effectively counter the global strategies of not paying national tax.
     
  16. LondonCanary

    LondonCanary Star commenter

    Tax will always be different in different states. If someone e.g. Lewis Hamilton. moves to Switzerland they pay tax there and are limited on how many days they may spend in the UK. Off shoring income is legal as long as you don't repatriate the money here without paying tax
     
  17. baitranger

    baitranger Senior commenter

    What is the procedure for that and is it painful?
     
  18. lizziescat

    lizziescat Star commenter

    err ,,,,
    that was precisely my point . Taxation is National whereas individuals can ‘play’ the global stage with their wealth.

    Although i would disagree that some international cooperation Isn’t possible (albeit unlikely atm)
     
  19. Stiltskin

    Stiltskin Star commenter

    A proportional taxation rather than a progressive one would be fairer in terms of everyone being treated equally. But should we strive for equity rather than equality? If we had a universal basic income to ensure everyone had enough to live on, and taxation was flat but only on what was earned in addition to this would that be fair?

    Perhaps a better option would be for the government to invest in the country to ensure its citizens are better able to create a wealth.
     
  20. baitranger

    baitranger Senior commenter

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