There is an article in the Groan that takes contributions from two sides of the 50% marginal tax debate. On the one side, a rational and logical explanation as to why the 50% marginal rate is a bad idea from Bridget Rosewell and on the other, Tim Worstall’s favourite retired accountant, Richard Murphy.
Reading the article is one thing – Murphy pontificates his usual wibble, but the vitriol and sheer idiocy below the line is a wonderful example of fuckwittery to behold. Such is their hate and envy of anyone who makes more than they do, that these people actively advocate anything up to 100% marginal tax rates – confiscation for those who might dare to leave these shores, for example. As is usual, not only do the Guardianista seem to think that other people’s money should be stolen from them and used on the state’s favoured waste of the day, but they have clearly not grasped the most basic of concepts; the Laffer Curve.
Mind you, Ritchie doesn’t think it works in practice, but then, Ritchie is an idiot. When I was still working as a consultant I stopped earning when my profits reached the threshold that would take me into the next tax bracket to avoid paying 40% marginal tax. I refused to give these people more than was absolutely necessary. Unlike Ritchie I do not have a rose tinted view of tax. It is a necessary evil at best and is far, far too high. I am far from alone – it doesn’t just involve the very wealthy upping sticks and leaving the country as some of these cretins seem to think. The Laffer Curve is alive and well out there in the wild.
Such is their hate and envy of anyone who makes more than they do, that these people actively advocate anything up to 100% marginal tax rates
Completely agree with you on this [and that’s a rare thing :)]. Not sure if it’s the politics of envy or hitting on a soft touch.
I wonder what sort of jobs these people do, do they actually enjoy paying tax ? Surely at least some of them must be in situations where they or others are reluctant to work overtime because it just isn’t worth it ? I certainly see that in my job where improved pay has resulted in difficulty covering turns at times because people would rather have time off than work for next to nothing extra.
The secret is to be either poor or stinking rich. It’s no fun in the middle.
If I ruled the world there would be one tax, income tax. Everyone over the survival threshold would pay and the rate would be the same for everyone, on every penny earned. No tax avoidance, no tax evasion just pay yer damn dues to the collective in order to benefit from collective provision. Before the howling starts, all infrastructure such as roads, railways, hospitals, schools, universities etc. is finance by the collective. Of course if the very rich want to build their own roads, sewerage systems, power and water supplies then that’s fine by me.
Laffer’s numbers are wrong, though his principle is correct – and I’d disagree with LR about the amount.
BUT It should be certain that any tax above 49% is immediately counter-productive.
Oops, should have said TOTAL tax – which alters the numbers a bit…..
Actually, I didn’t mention any amounts – merely that I am not prepared to pay a 40% marginal tax rate.