Monday, 17 September 2007

Lib Dems to "hammer the rich"?

Look here chaps, the tax system is there to raise money!

The Lib Dems had a policy in 2005 that they'd have an extra 10% tax on people earning over £100,000 p.a., which'd raise another £5bn*, a policy they dropped in 2006** and now appear to have resurrected. Which is mathematically correct. There are 500,000 people in UK with taxable income over £100,000, average taxable income £200,000. So if 500,000 pay an average extra £10,000 in income tax, that's £5bn more in the kitty...

No it f***ing well isn't!

If one-tenth of those higher rate taxpayers bugger off, that means receipts would fall by 50,000 x average income tax £70,000 = £3.5bn. And if they are all employees, it's 50,000 x average income tax/NI £100,000 = £5bn.

So what's the point?

Ah, problem solved.

*Or about 1% of current government receipts.

** See para. 2.2.2 on page 17 of this from August 2006.


Anonymous said...

You missed this snippet down the page same:

"JUSTINE McGuinness, the McCanns' former press spokeswoman, has quit her high-profile role to rush to her party's aid. She is set to chair sessions with activists."

They're in real trouble now.

Vindico said...

I fail to understand how anybody can be so economically illiterate. It is really not that tricky to understand. Bigger taxes on the rich (most mobile both physically and in terms of income arrangements) will drive them away and discourage them from declaring income in the UK. The Lib-Dims are a waste of space. A good argument against proportional representation!!

Mark Wadsworth said...

WOAR, well spotted.

Vindico, exactly! The reverse logic is, if you get rid of higher rate tax, then the fall in total revenues would be negligible, it may even lead to an increase in receipts, but only UKIP seem to have cottoned on to this.

Henry North London 2.0 said...

Councils where the Lib Dems are in power have the highest council tax

Its enough to make you stand for parliament

Bloggers Party anyone?

Mark Wadsworth said...

HNL, that is a different topic.

The Tories used to skew it so that Tory-controlled councils got the most central funding (which makes up 80% of council funding) and now Nulab skew it so that Labour councils get most central funding, which is why, even tho' Labour councils are the highest spenders, they have on average the lowest council tax. Fact.

And both Tory and Nulab governments of course f*** over the Lib Dem controlled councils!

(I still hate the Lib Dems, but not for this reason, more because I hate all the big three parties. And Respect and the BNP. SO that leaves UKIP).