Taxing the super rich

I am sure it has been said before but over a decade ago the government think tank worked out that if you amalgamate all the taxes, obviously now we have a new tax pensions. at the time it came to 30% and applied that to everyone a number of things would happen.
1 the government would earn more not by much
2 fraud would be highlighted so revenues would rise
3 people would feel equal and more likely to pay
4 we would need less staff so it would run more efficiently
5 the rich would pay more even though the % was lower
6 those thieving scum that take the food our of starving kids mouths, accountants would be out of a job
 
salfordbluetrue said:
I am sure it has been said before but over a decade ago the government think tank worked out that if you amalgamate all the taxes, obviously now we have a new tax pensions. at the time it came to 30% and applied that to everyone a number of things would happen.
1 the government would earn more not by much
2 fraud would be highlighted so revenues would rise
3 people would feel equal and more likely to pay
4 we would need less staff so it would run more efficiently
5 the rich would pay more even though the % was lower
6 those thieving scum that take the food our of starving kids mouths, accountants would be out of a job
Click to expand...
So you think that people on £10k a year should lose £3k of it and people on £10M a year should get an extra £1.5M in their pocket. Seems fair.
 
Henkeman said:
You don't seem to get the cascade failures this would bring. Italy's Target 2 liabilities are around £500 billion. The euro is entirely bound up in mutual arrangements, which is not in itself unusual, but it has no central Treasury or lender of last resort. That's the problem. That's why it's different to anything else. It's why it's so uniquely vulnerable. It's why Greece nearly brought the whole thing crashing down and why they were sacrificed.
Click to expand...
£500 billion. How much was lost in the sub prime crisis?
 
aguero93:20 said:
Dodging the question. $12.8 trillion.
Click to expand...

Dodging? I'm not dodging a thing. You don't appear to understand the structure of the euro and why it is susceptible to banking crises and political crises.

Let me try and explain. All currencies work in the currency area. You have the sterling area for the UK, the dollar area for the US and so on. They are backed by both a central bank and a Treasury that sets interest rates for the whole.

Now in any such system, the best interest rate varies by area. London should have a higher one than Tyneside for example, but it's obviously not possible, and you have free movement of labour that allocates where needed. Because money flows to the more successful areas, central government (the Treasury) rebalanced the economy by pushing money to the areas that need it, while the finance sector is backed by a lender of last resort to allow it to function.

The euro has none of this. No Treasury, no single government. Finance moves to the core and there is no means of reallocation, and no lender of last resort to assist as money flows out of the periphery.

That's why you end up with eurozone countries running deficits, which is usually resolved through devaluation to allow competitiveness. But that isn't possible either. So you end up with increasing public debt in the periphery, the finance sector starts to become stretched because of ever increasing bad loans, and states can only respond with internal devaluation which is both hideously painful and ultimately counterproductive as tax receipts fall.

This is a precipice. It is totally unsustainable. And you get countries screaming for it to be resolved or else, as is happening in Italy now.

This is not like any other country. The UK cannot go bankrupt, it can always print its way out of trouble. Eurozone countries can, they are effectively operating with a foreign currency, not backed by anyone. Do you not see the difference? Avoiding the question? I'm trying to explain.
 
Henkeman said:
Dodging? I'm not dodging a thing. You don't appear to understand the structure of the euro and why it is susceptible to banking crises and political crises.

Let me try and explain. All currencies work in the currency area. You have the sterling area for the UK, the dollar area for the US and so on. They are backed by both a central bank and a Treasury that sets interest rates for the whole.

Now in any such system, the best interest rate varies by area. London should have a higher one than Tyneside for example, but it's obviously not possible, and you have free movement of labour that allocates where needed. Because money flows to the more successful areas, central government (the Treasury) rebalanced the economy by pushing money to the areas that need it, while the finance sector is backed by a lender of last resort to allow it to function.

The euro has none of this. No Treasury, no single government. Finance moves to the core and there is no means of reallocation, and no lender of last resort to assist as money flows out of the periphery.

That's why you end up with eurozone countries running deficits, which is usually resolved through devaluation to allow competitiveness. But that isn't possible either. So you end up with increasing public debt in the periphery, the finance sector starts to become stretched because of ever increasing bad loans, and states can only respond with internal devaluation which is both hideously painful and ultimately counterproductive as tax receipts fall.

This is a precipice. It is totally unsustainable. And you get countries screaming for it to be resolved or else, as is happening in Italy now.

This is not like any other country. The UK cannot go bankrupt, it can always print its way out of trouble. Eurozone countries can, they are effectively operating with a foreign currency, not backed by anyone. Do you not see the difference? Avoiding the question? I'm trying to explain.
Click to expand...
I understand the argument mate, but Italy defaulting and the sub prime crisis are in different ball parks.
 
Some excellent posts in this thread that should also be in the brexit thread.
 
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