tag:blogger.com,1999:blog-7985429043801017839.post7285759281535413036..comments2023-10-27T07:50:27.411+01:00Comments on Next Left: Significant rise in support for 50p rateTom Hampsonhttp://www.blogger.com/profile/05917325958130851128noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-7985429043801017839.post-65567679661398166722009-04-25T16:10:00.000+01:002009-04-25T16:10:00.000+01:00Many thanks for your detailed response Sunder. I s...Many thanks for your detailed response Sunder. I suspected it would be rather difficult to move to that position quickly.<br /><br />I'll have a look at your posted link to Mark Gill's article and the report you mention above.<br /><br />I was recently with colleagues in Copenhagen, Denmark where income taxes seem to be between 40% and 67%. Everyone we spoke to seemed happy, if not proud to pay this. But whatever the merits or otherwise of this, I can not imagine the culture in the UK ever allowing that system to be introduced here.Captain Funhttps://www.blogger.com/profile/06035637733907073572noreply@blogger.comtag:blogger.com,1999:blog-7985429043801017839.post-69565809994787336042009-04-24T21:59:00.000+01:002009-04-24T21:59:00.000+01:00Thanks for comments. CaptainFun asks what the case...Thanks for comments. CaptainFun asks what the case against flat taxes is. I am going to let somebody else go for the philosophical case for having progressive banding.<br /><br />The problem of fairness in practical terms, and the political problem of trying to change to such a system, seem clear.<br /><br />If a flat income tax was to bring in similar revenue to current income tax, it would presumably be somewhere between the basic and the higher rate, and those currently paying the 20p rate would be taxed much more heavily to reduce the taxes of those currently paying the higher rate. <br /><br />Most people believe that would be unfair, primarily because of the principle of the ability to contribute.<br /><br />So those who propose a flat rate suggest it should be where the current basic rate is. This means a fall in revenue, requiring greater taxes elsewhere, or less spending or more borrowing.<br /><br />Also, almost everybody believes in having a tax-free threshold before tax is payable. The Adam Smith Institute have proposed raising this considerably, before a flat tax then kicks in. But that is based on an argument which is in many ways the opposite of the flat tax principle. Again, this approach would see less revenue and less spendng, and part of the poltiics is to popularise that approach.<br /><br />Both the arguments and numbers are examined in this <br /><A HREF="http://www.taxjustice.net/cms/upload/pdf/AACA_flat_tax_report_-_JUN_2006.pdf" REL="nofollow">report</A> (2006) from the Tax Justice network.Sunder Katwalahttps://www.blogger.com/profile/06671411534003530927noreply@blogger.comtag:blogger.com,1999:blog-7985429043801017839.post-72478649926424488732009-04-24T12:34:00.000+01:002009-04-24T12:34:00.000+01:00And to all those avid New labour supporters to ens...And to all those avid New labour supporters to ensure Gordon's message comes out right, he sends Mandelson out, look people this 50p tax is needed now, we have to do it, do not worry it will not last long , New labour will reduce it again soon fast in fact, once we get the ass holes scrounging scum back to work, you know the work shy the lazy disabled.<br /><br />Mandy says the 50p is temporary.Roberthttps://www.blogger.com/profile/05186557603493331701noreply@blogger.comtag:blogger.com,1999:blog-7985429043801017839.post-1543240665451623922009-04-24T10:53:00.000+01:002009-04-24T10:53:00.000+01:00While I think the 50% rate is tactically a master ...While I think the 50% rate is tactically a master stroke, and also in theory targets the 'payment' for recession at those most likely to have caused it (bankers) (at least in popular mythology), my own personal theory on taxation, is that a single rate is fair. You earn a little you pay a percentage; you earn a lot, you pay a lot - but the same percentage. <br /><br /><br />Differential tax rates for higher earners only fuel ridiculously high pay increases. If an employee takes home £500 out of a £1000 rise, then you're going to need to offer £2,000 to give the same incentive, as if they'd got all of it. Meanwhile the low earner and the Daily Mail only look at the figure before tax.<br /><br />It worries me that I think my belief on this issue has probably more in common with Tory policy than Labour !Captain Funhttps://www.blogger.com/profile/06035637733907073572noreply@blogger.comtag:blogger.com,1999:blog-7985429043801017839.post-65231433823060440002009-04-24T10:17:00.000+01:002009-04-24T10:17:00.000+01:00I suppose now that the myth that the city is a one...I suppose now that the myth that the city is a one-way money making machine from which we will all benefit has been shattered, even reversed (i.e. it can be a loss making machine), there is no justification for not taxing the super rich. Suddenly, everyone thinks it is the right thing to do and it is relatively easy to make the case. However, as Sunder says, we should have made the case earlier, but one of the key planks behind New Labour was to leave the City alone to make money. This is a key weakness because when the City fails it inevitably rubs off on the administration who believed in it so fully. <br /><br />I guess the shift in public opinion is partly selfish. People no longer believe they are on a straight-forward route to ever increasing wealth, and so now the idea of taxing the super rich doesn't destroy their own aspirations. Maybe I am being too cynical...Calixhttps://www.blogger.com/profile/05754832236324324540noreply@blogger.comtag:blogger.com,1999:blog-7985429043801017839.post-78714991828811685972009-04-24T09:50:00.000+01:002009-04-24T09:50:00.000+01:00I am in support in taxing the rich and as a avid l...I am in support in taxing the rich and as a avid labour supporter I say to labour hurry up and win the next general elections. You may wish to log on to gordonlyew.blogspot.comGORDON LYEWhttps://www.blogger.com/profile/16422619140146480986noreply@blogger.comtag:blogger.com,1999:blog-7985429043801017839.post-8370078969374907232009-04-24T09:26:00.000+01:002009-04-24T09:26:00.000+01:00A really interesting breakdown. I still think that...A really interesting breakdown. I still think that New Labour has been scared of its own shadow, as the tax issue shows. Maybe now they will feel more able to make the case for higher taxesBearded Socialisthttps://www.blogger.com/profile/17177734192167273165noreply@blogger.com