Labour, that is. Only the politics of envy could possibly support a call for a 50% marginal tax rate. It is bad enough that we are already massively over-taxed as a nation to pay for the largesse of government when it hands out funds stolen from us to its friends in the third sector, to third-world shit-holes that hate us and to itself in the form of bloated and unnecessary government departments. Yet not satisfied with this wholesale rape of our productivity, Labour wants more. The very idea of a 50% tax rate is obscene, yet there will be plenty of lazy scumbags who think the world owes them a living who will happily vote to steal other people’s money..
Okay, so it doesn’t directly affect me – and I intend to make damned sure it never does, but the principle still makes me fume. I make absolutely certain that my profits never take me into the 40% bracket and will stop working towards the end of the tax year if it looks as if it is going to. That is the beauty of self-employment; you can adjust your profit and expenditure to avoid tax in a manner that those on PAYE cannot. Last year, with some very sensible accounting – and spending everything that I could on the business, I managed to come in with no income tax due. This isn’t going to happen in following years because last year was an exceptional circumstance. I was effectively starting a new business from scratch – so had start-up costs that I won’t this year. But this year, there will be a new bike, so that will eat into what HMRC can pick from my pocket – far better the money goes to those nice folk at BMW than the state. In the meanwhile, the HMRC owes me forty quid. That forty quid will be better spent by me than the government.
I really don’t see how Ed Balls can possibly expect to be taken seriously as a potential Chancellor. He makes a big noise about ‘balancing’ the budget (terms and conditions apply) and then makes an equally big noise about an income tax change that will REDUCE the amount of tax collected. Laffer must be spinning in his grave.
I heard the Labour talking head on the radio today describing the 50% tax rate as “fairer”. It seems to me that it is the precise opposite of fairer but presumably black is white, up is down and short is long in topsy turvey lefty world.
Sorry to be OT, but I have to express my admiration for someone who rides his motorcycle in all weathers and at this unseasonable time of year. I used to ride all the year round in my younger days when my bike was my only transport but nowadays my winter riding normally consists of a quick blast up the bypass on the odd fine Sunday afternoon just to give my bike a run. Three weeks ago my trusty old Peugeot estate was rear ended and, despite the damage being pretty superficial, has been written off. We have lined up a replacement car but I was left commuting on the bike for three days and have had a pretty miserable time. Even when it wasn’t raining or icy, the roads are in a terrible state of neglect and covered in mud. There really is no fun in it at this time of year.
To the progressive, “fair” means soaking the rich. And “rich” is “anyone who earns more than me”.
Just mention the busting of the Co-op Bank the next time Balls opens his mouth.
If there were any real journo’s left one or more could have a field day with this despicable man
When I was in work my net income was roughly 70 percent of my gross. Then much of my subsequent expenditure is subject to VAT (at 20 pc, I think), what – then is my marginal rate of taxation? I also drink and smoke,which made me very valuable government asset.
I discovered recently that taxation on small business owners in Italy has crept right up to 68%. Which explains a lot about the economy of late. So 50% sounds almost reasonable by comparison. This is why I’m not planning to make a ton of money until my current lease expires and I can relocate to a less bonkers country.
I suspect Labour are well aware of the effects of a 50% tax. They tried far worse in the 1970s, with predictable results, while the French also failed to learn that particular lesson. They’re only flying this kite because it gets them free publicity and keeps the party’s name in the media for a bit. This is PR, not policy.
Then again, if the British electorate decides to re-elect on of these worthless parties, they’ll deserve everything they get. No more excuses. All three have been tried within a generation, and all three have utterly failed. Vote Labour, Conservative, Lib-Dem, or any of the major parties (including the Greens), and you’ve only yourself to blame: actions have consequences, and there’s no “right” to freedom from consequences.