tag:blogger.com,1999:blog-10815380.post4013715303571019473..comments2024-03-14T12:42:51.995+00:00Comments on Chris Whiteside's Blog: DC on lower taxes and the difference between the Tory and Labour approachesChris Whitesidehttp://www.blogger.com/profile/02888720969479013951noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-10815380.post-792064222652307052014-11-01T08:56:56.481+00:002014-11-01T08:56:56.481+00:00I don't remember it personally, but I have hea...I don't remember it personally, but I have heard the story a few times.<br /><br />I quite like John F Kennedy's quote on this:<br /><br /><i>"the soundest way to raise the revenues in the long run is to cut the rates now … The purpose of cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy which can bring a budget surplus."</i> Jimhttps://www.blogger.com/profile/00373005279697295131noreply@blogger.comtag:blogger.com,1999:blog-10815380.post-57202575930890510752014-11-01T08:34:36.478+00:002014-11-01T08:34:36.478+00:00Absolutely.
Do you remember the story of the Labo...Absolutely.<br /><br />Do you remember the story of the Labour MP who, a few years after Mrs T and Sir Geoffrey Howe had cut the top rate of income tax from 98p in the pound or 87p in the pound to 40p, asked how much less the richest 5% were paying as a proportion of tax revenue as a result?<br /><br />The relevant minister replied with a certain amount of glee that both the amount and the proportion of tax paid by the richest people had massively gone upChris Whitesidehttps://www.blogger.com/profile/02888720969479013951noreply@blogger.comtag:blogger.com,1999:blog-10815380.post-35766636889116533432014-11-01T08:21:04.006+00:002014-11-01T08:21:04.006+00:00its like 5% of 1000 is 5 times more than 100% of 1...its like 5% of 1000 is 5 times more than 100% of 10.Jimhttps://www.blogger.com/profile/00373005279697295131noreply@blogger.comtag:blogger.com,1999:blog-10815380.post-13392206308158931842014-11-01T08:18:31.563+00:002014-11-01T08:18:31.563+00:00You've anticipated several of the points which...You've anticipated several of the points which I'm planning to work into a post over this weekend - if you don't uprate tax thresholds in line with inflation then "fiscal drag" produces what amounts to a gigantic stealth tax.<br /><br />I strongly support the increase in Thresholds which DC announced, but by the time you allow for inflation over a parliament the impact will be much less <br /><br />- at least, relative to where the tax take stands today, if not relative to where it would be if the thresholds were left where they are in money terms - <br /><br />than a lot of commentators seem to be assuming.<br /><br /> Chris Whitesidehttps://www.blogger.com/profile/02888720969479013951noreply@blogger.comtag:blogger.com,1999:blog-10815380.post-79480663646343663802014-11-01T08:15:21.704+00:002014-11-01T08:15:21.704+00:00its one of those things that at first glace does n...its one of those things that at first glace does not seem to add up. It somehow does not seem to make sense, kind of in the way some people can't get their head around "the universe needs no creator".<br /><br />Well its true with taxation, the exchequer can take more overall by simply demanding less. Odd, but true.Jimhttps://www.blogger.com/profile/00373005279697295131noreply@blogger.comtag:blogger.com,1999:blog-10815380.post-28802591230918778932014-11-01T08:04:44.980+00:002014-11-01T08:04:44.980+00:00That is one that has been on the cards for a while...That is one that has been on the cards for a while (the 40% tax thing)<br /><br />As its stood its not been moved in a long time, so more and more people are being pushed into it.<br /><br />A few years ago someone earning over £31,865 was considered to be seriously rich, these days though its not an obscenely hi salary.<br /><br />Im not a fan of "progressive taxation" at the best of times, to me a higher earner pays more anyway, simply because the tax rate is a percentage not a flat figure. so 20% of £100,000 is more than 20% of £20,000.<br /><br />Also its the highest earners those earning over £150,000 (45% payers) who can afford the clever accountants, Thus a managing director earning £2million ends up paying less in tax than the office cleaner.<br /><br />Im not anti tax avoidance, in fact I am all for it, its down to governments to reduce the tax levels to the point where the temptation to avoid tax is lost.Jimhttps://www.blogger.com/profile/00373005279697295131noreply@blogger.com