"Tax dodging by rich could be ‘much greater than thought’, says UK audit office"

[HawkEye244]

This is one of the issues I discussed with my local MP a few weeks ago. It is a big problem. The rich have an ever greater share of the income and wealth but are becoming increasingly able to avoid tax in various ways.

No. The rich create wealth and wealth creates more jobs. You don't use disincentives to create more of what you want you create more of what you don't want, which is less wealth and less jobs for everyone. It's totally counterproductive to overtax the rich. The rich are leaving and the country is getting poorer.

 

[MNW67]

what is your definition of 'tax dodging'? You never have answered that question when complaining about 'tax dodgers'. Is it tax evasion or tax avoidance and before you answer, remember the avoidance rules you enjoy, albeit on a much, much smaller scale than the 'big boys'.

I think sometimes it can be a simple sniff test.

The sort of scheme where somebody sets up a fake film company in the Isle of Man to get tax credits and then deliberately makes a loss so that they can further reduce their tax bill, is very different to using a mass scheme encouraged by the government such as ISAs or premium bonds.

 

[MNW67]

No. The rich create wealth and wealth creates more jobs. You don't use disincentives to create more of what you want you create more of what you don't want, which is less wealth and less jobs for everyone. It's totally counterproductive to overtax the rich. The rich are leaving and the country is getting poorer.

That has always been the counter argument. I remember people decades ago talking about stuff like the Laffer curve. For some reason, though, it seems to be very difficult these days to raise enough tax to pay for everything and we have a huge national debt as a result. In the past, it felt like it was more of a policy choice and that more tax could be raised if we needed it. Now it seems to be like whack-a-mole.

 

[Deleted member 323070]

No. The rich create wealth and wealth creates more jobs. You don't use disincentives to create more of what you want you create more of what you don't want, which is less wealth and less jobs for everyone. It's totally counterproductive to overtax the rich. The rich are leaving and the country is getting poorer.

That's the theory, but it's flawed, massively.
If I have savings of £100 and put it into a savings account paying, say 4% interest. I earn an additional £4 year.
Skipping out all the in between scenarios. if I save £1,000,000 in the same account I earn £40,000 for doing nothing, and my money is only benefitting me. it isn't creating any wealth for anyone else. it isn't creating any jobs. It isn't making anyone else richer, except for the bankers, and the accountants.
And I'm getting even richer a heck of a lot faster than the poor sod with just £100.

Wealth creates wealth, and not a lot else.

Sure, I buy a car, and a house, and the groceries, but so does the poor sod with £100
And the rich person has a lot more left over to re-invest in a savings account.

Trickle-down economics, which suggests tax cuts and deregulation for the wealthy will lead to economic growth that benefits everyone, has been the subject of significant debate and scrutiny. While the theory posits that wealthy individuals and businesses will reinvest their gains, creating jobs and stimulating the economy, studies have generally found limited evidence to support this claim. Some research suggests that tax cuts for the wealthy primarily benefit the wealthy, with little to no impact on overall economic growth or job creation.

Some studies show that decades of trickle-down policies in the US have redistributed wealth from the bottom 90% of earners to the top 1%.

 

[Murdochcat]

So posts have vanished without any comment or explanation.

Sort of undermines the honesty of this forum

 

[MNW67]

So posts have vanished without any comment or explanation.

Sort of undermines the honesty of this forum

That sounds strange. Has it been an angry thread.

Were they your posts. What did they say.

 

[Odds]

That sounds strange. Has it been an angry thread.

Were they your posts. What did they say.

The 'cat is talkin' out his hat.
All posts present are correct.

 

[Murdochcat]

That sounds strange. Has it been an angry thread.

Were they your posts. What did they say.

My post commenting of 2 other peoples nasty posts has been removed along with the nasty posts.

There was nothing wrong with my post

 

[Odds]

My post commenting of 2 other peoples nasty posts has been removed along with the nasty posts.

There was nothing wrong with my post

you lie.

 

[Vinty]

The information is available. The top 1% pay around 1/3rd. The top 10% 2/3rds.

The top earners are low hanging fruit. Those working cash are much harder to police and they are in the millions.

I read this figure.

Meanwhile, the average salary for the UK’s top one per cent of earners stands at £186,120 per year.

That doesn't sound a lot, I thought the top 1% were mostly millionaires and billionaires, so the percentage figures for the contribution to tax revenues by the very rich could be less.

Anyway, maybe if the wealth generated by everybody in the economy was more fairly distributed, then those at the bottom would earn more and therefore pay more tax,and if those very rich had less wealth to start with due to a fairer redistribution policy, they pay less in tax, that should help close the tax gap.

 

[Murdochcat]

Just be thankful that the top 10 % of earners pay about 60% of income tax receipts

 

[denso13]

Just be thankful that the top 10 % of earners pay about 60% of income tax receipts

Those with the ability to pay should do so. Of course the top earners pay more.

 

[MNW67]

As the West has become more unequal it has become much unhappier.

 

[MNW67]

Those who long to return to the 1950s probably don't realise that the top tax rate was 90%.

 

[Vinty]

No. The rich create wealth and wealth creates more jobs

More Jobs in China and other cheap labour economies, that is where the rich go.
Capital goes where the profits are.

Why are so many American and European companies creating jobs in the far East.

If the rich want to leave the UK , that's ok, a lot of them don't contribute much to the economy anyway, London is full of rich foreigners who use it to launder their ill gotten gains, they buy up property and leave it empty, while 1000's are homeless, how does buying a 250 million quid Yacht or a 50 million quid painting to hang on wall, create real jobs in the UK.