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

[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.

 

[Notch7]

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.

not true though

ordinary people spend more and drive the economy
the wealthy hoard money and grow assets keeping money out of the economy

It's totally counterproductive to overtax the rich.

It is totally counterproductive to make ordinary working people poorer

 

[Murdochcat]

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

Did i say that their contribution was wrong?

The majority of the population have absolutely no idea about this stuff

 

[denso13]

Did i say that their contribution was wrong?

Did I say you said it was wrong?

 

[Murdochcat]

ordinary people spend more and drive the economy
the wealthy hoard money and grow assets keeping money out of the country

Absolute nonsense.

My rich BIL spends huge sums in this country on all sorts of things providing income for people

 

[Murdochcat]

Did I say you said it was wrong?

That was inferred and certainly by the tone of your response

 

[Vinty]

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

That is the root of the problem. these days people can see the injustices and unfairness, the corruption is blatant.

 

[MNW67]

Absolute nonsense.

My rich BIL spends huge sums in this country on all sorts of things providing income for people

On average, though, the research shows that money in the hands of poorer people is much more effective at boosting the economy.

 

[Murdochcat]

That is the root of the problem. these days people can see the injustices and unfairness, the corruption is blatant.

Not sure i agree with this. Social media has portrayed situations where the few benefit and a lot of people think they can do the same without the graft

And the amount of cash in hand work done these days, very blatantly is astonishing

 

[MNW67]

Social media has portrayed situations where the few benefit and a lot of people think they can do the same without the graft

I have been reading something similar about social media contributing to unhappiness.

 

[diy_fun_uk]

they buy up property and leave it empty, while 1000's are homeless,

Happy to be proved wrong however I seriously doubt the properties they're buying and mothballing would be within the financial reach of those who are homeless, or would have been before they became so.

 

[Deleted member 323070]

Absolute nonsense.

My rich BIL spends huge sums in this country on all sorts of things providing income for people

He invests to create more wealth for himself.
His wealth is increased from his existing wealth, and because he accumulates more wealth, the not-rich have less.
Wealth isn't created out of the ether. It's built on the labour of others.

 

[Deleted member 323070]

Happy to be proved wrong however I seriously doubt the properties they're buying and mothballing would be within the financial reach of those who are homeless, or would have been before they became so.

Of course they're not. But those buildings are useful for mothballing wealth. And it accumulates more wealth by simply sitting there and doing nothing.

 

[blup]

Mind you...

King Charles’s personal fortune increased to £640m* in the past year [and] is now estimated to be worth considerably more than the late Queen Elizabeth II, whose wealth was estimated at £370m in 2022., making him as wealthy as the former prime minister Rishi Sunak and his wife, Akshata Murty, according to the Sunday Times rich list.

*However, an investigation by the Guardian in 2023 estimated that King Charles’s fortune could be almost £2bn. That includes cars, rare stamps, property, investments, horses, jewellery, art and a hereditary estate.

Republicans will be gnashing their teeth at that.

He keeps large tracts of the countryside in reasonable order. But his claim that agriculture enterprises like the duchy of Cornwall employs farmers runs a little thin when you realise many of the farm tenants are very short term and are essentially there keep the grass down by tending beef or sheep. Fair enough it’s a business but one that is slightly more founded on maintenance of pastures and woodland than it is agriculturally productive

 

[Notch7]

Absolute nonsense.

My rich BIL spends huge sums in this country on all sorts of things providing income for people

Economic growth more likely when wealth distributed to poor instead of rich​

According to research from the Brookings Institution and the Reserve Bank of Australia, the marginal propensity to consume of high-income earners is substantially less than for low-income earners. In other words, poorer people are likely to spend the bulk of any extra income while the wealthy are more likely to save it.


the very wealthy accumulate assets

the ordinary working man spends his discretionary income no consuming not accumulating assets


So what’s the actual real world importance of estimating marginal propensities to consume? Knowing which households are the most likely to spend an extra dollar can help make fiscal policy more effective. According to Carroll and his co-authors, any fiscal stimulus targeted toward individuals in the bottom half of the wealth distribution would be 2 to 3 times more effective than just a blanket stimulus.

Given the high and rising levels of wealth inequality in the United States, this finding should give some guidance to policy makers. Ignoring the distribution of wealth can undermine their ability to get the economy back on track.

Wealth inequality and the marginal propensity to consume

If someone handed you $10 right now, what would you do with it? Would you decide to spend it right away? Or would you stash it away? Or some combination of the two? The answer to that question would in part reveal your marginal propensity to consume, or MPC for short. This statistic goes a […]

equitablegrowth.org