Newest Review: ... or so to administer. The 45p tax rate may encourage a few more entrepreneurs to Britain but it won't encourage rich people to pay mo... more
The rich pay less tax in the hope they pay more tax?
Member Name: thedevilinme
Date: 23/03/12, updated on 23/03/12 (45 review reads)
Advantages: Rich just got richer
Disadvantages: Poor get poorer
So there it is, a huge tax cut for the rich, the 50p rate down to 45p in the pound, a three billion handout to those who claim to earn over £150,000 per year, the plan being the rich actual will claim to own over 150 grand a year now. Also, the rich are technically no longer the top 1% of the country as 15% of the country is now eligible for that 45% tax, due to a sneaky tweak of the threshold by Osborne that few commentators picked up on in the budget. Will that 15% be even more evasive on tax? The answer, as always, is yes. The rich hate paying tax and it's a sport not to pay it.
The Chancellor says he will scrape that back that 50p drop elsewhere, no doubt through higher tax on champagne they have been drinking all this week would help, his main target of 7% Stamp Duty on their mansions unlikely to bare little fruit. A small chunk of millionaires had been putting their houses into a company trust and so avoiding that duty, but hardly a three billion evasion. Even as George Gideon Osborne was delivering that property nugget in the budget the accountants were flicking through the mid-boggling 2897 pages of the current tax code to find the next loophole to evade stamp duty, which they will. Tax, like the law, is very ambiguous if you can afford to get the right lawyers and accountants to pick at it. The fact that Osborne's 45p tax is deferred for a year will allow the rich to evade the 50p rate by paying themselves in a year's time, exactly what they did when labour took on the 50p rate, the same grace period offered to the rich back then. Governments are petrified that big companies will just up sticks if they pay to much tax, the 2p cut in corporation tax down to 22% an example of. Most big British companies evade most of that tax by basing their head office off-shore. 50% of all the worlds' tax havens are British territories. Governments have simply given up chasing tax.
Osborne says the 50p tax was bought in by Labour to attack the rich near election time to win votes from the poor, which didn't work and didn't bring in much more money into the exchequer. It costs a lot of money to track down the rich to pay taxes and so the Tories are simply not going to bother on this one and reversed it. Maybe they have dumped it because it partly helps their rich mates but mostly because it costs a billion or so to administer. The 45p tax rate may encourage a few more entrepreneurs to Britain but it won't encourage rich people to pay more tax. If all of us had accountants and were told how to avoid tax WE WOULD!! And we would still complain about council services and the NHS not being any good. We are all hypocrites when we moan about the rich don't pay enough tax as we would just do the same. Anyhow, the people who pay the most tax often use public services the least. Free money is free money. The rich don't want to pay taxes because they won't use the services that would involve mixing with us and so nothing will change that culture.
Osborne has said this budget is to help working families, and in a way he is right. The cutting of child benefit for the rich is very welcome as they spend it on skiing holidays in term time anyway whereas the tax credit cuts for families seem more severe and targeted at the poor and women. But this WTC cut is in conjunction with a rise every year of personal tax allowance so you can earn more from your part-time job pay-packet and so working mums reliant of tax-credit hand outs, which in some cases encourages them to stay at home and have more kids. They now have to boost their hours from 16 to as near as 24 as possible to get their tax credits back. It's taking away a handout form the Treasury and helping people back to work, like the new welfare programs are designed to do. The more mums with older kids and the unemployed are at work then the quicker the country can get going and the less the country needs to borrow on the markets.
Labour, of course, designed tax credits and increased welfare to get us addicted to handouts and so we would vote for more, and them, at the ballot box. But a startling statistic suggests that handout craving is beginning to wane and it has been revealed that year-on-year teen pregnancy numbers are falling by 5% under this Tory government. Even feckless working-class girls are getting the message that there just isn't the money to have babies on the state anymore and those 'accidental pregnancies' to get a council flat are tumbling. The abortion rate in the same years doesn't cover the fall and the Tories fear factor is clearly beginning to change the countries mentality on the Welfare system from top to bottom. Cameron's tactic is to abort the next generation of claimants by scaring this generation by the looks. Under Labour why wouldn't a young unmotivated girl want her own place and more money every week by the numbers of kids she turned out? That's what was happening.
On fuel tax I do think Osborne has got it wrong. An example is seen in exploding gas prices. The consumer could take no more and preferred to sit and shiver to make their point, using 21% less gas in 2011 than 2010 to save money in winter. The gas company's cartel responded in anger and put the prices up by; you guessed it, 21%. This is the same problem for Osborne with petrol. As the price of the gallon rises the less people use their cars and so no more tax raised for the treasury. The oil price will never again fall below $100 a barrel as we near peak oil and so maybe a cut in duty was called for to get people driving again and paying more tax that way. Industry certainly can't take it anymore and that is hurting the economy, taxi use down 25% nationally in just two years a great example. Its great that people are walking more to save on small journeys and getting fitter in the process but when we try to use public service like trains and buses those fares have deliberately been hiked to force us back into our cars to pay that fuel tax. The Tories green policy is non existent. Cars rake in 50 billion a year in tax. They want us in them! Did you know it now cost £4:00 pounds for a single journey on the Tube, the congestion charge squeezing everyone on to the said Tube? Taxing people to get to work is somewhat contradictory Mr Cameron to your back to work policies.
Another stealth tax on transport is this green air tax, bringing in a nice little earner of £2.7 billion a year, twice that of the yearly bank tax. But, like those gas bills, people just cut back on flights to avoid it and so the Tories put the tax up more to get the money back, rather than calling it a green success as it was because less people are flying and so polluting. Every green tax policy is just about getting in tax, why I don't believe in all this man made global warming nonsense.
Booze and fag tax going up is no real surprise and we could all do with doing less of those as a nation. Pubs are closing because of the smoking tax and now because of booze prices. Rather ironically, pub workers are the most likely to smoke and drink at work, the very staff the smoking ban was bought into protect? The government have been very cute here and by setting a soon to be minimum price per unit they can force up untaxed supermarket booze prices nd push those home drinkers back into the pubs to boost the Treasury. The Tories understand the smoking ban is making us all live longer but they lost that tax.
Unemployment has always been the way the Tories control inflation and they are enjoying the big public service cuts if we are honest. Someone in public service on £17,000 gets £6,000 grand on Jobseekers, simple as. That's the sort of cute maths the Tory bean-counters love. That's how you cut the deficit. Labour clearly used the public service to create good jobs to give people better lives as they knew the private sector can no longer provide decent jobs for all. The scale of new jobs Blair created was irresponsible but public debt is only 15% of all of this countries debt and so the cuts need not be as fast is most people's opinion. The 85% of private debt is being paid in at our own leisure and being banked to sure up the banks as the EURO collapse nears.
Another alarming statistic has revealed that unemployment levels in the black community have doubled under the Tories in just two short years. Youg black men of working age now suffer an incredible 56% unemployment rate whilst its 40% for women. This is mainly down to public service cuts, jobs where equal opportunities law means 15% of the public service jobs must go to ethnic minorities, jobs black and Asian people are given a fair chance to get. The Tories love that statistic and will be toasting it tonight. 50% of London's unemployed are now black. I really do feel racism is part of the driver of the Tories ideology when it comes to their economic policies. The London riots were the first sign of this apartheid.
So summing things up we can only hope the top 1% of the country will spend their extra £40,000 grand in the shops and at least try to avoid less tax evasion in the future. Income tax is still one of the lowest levels in Europe here, and so at least we can dodge some taxes by cutting down on our vices. I have certainly cut back on beer and transport and spent that money elsewhere. The economy is going to be bumping along the bottom for many years to come and so you may as well get used to the austerity.
Summary: A Tory budget
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