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Old Feb 22nd, 2012, 03:23 PM   #1
Maverick74
 
 
Join Date: Mar 2002
Posts: 19,523
Can the left now shut the f*ck up about this now?

http://www.telegraph.co.uk/finance/p...-revenues.html

50p tax rate 'failing to boost revenues’
The amount of income tax paid fell sharply last month in the first formal indication that the new 50p higher rate is not raising the expected amount of revenue.


Robert Winnett

By Robert Winnett, and James Kirkup

10:58PM GMT 21 Feb 2012

The Treasury received £10.35 billion in income tax payments from those paying by self-assessment last month, a drop of £509 million compared with January 2011. Most other taxes produced higher revenues over the same period.

Senior sources said that the first official figures indicated that there had been “manoeuvring” by well-off Britons to avoid the new higher rate. The figures will add to pressure on the Coalition to drop the levy amid fears it is forcing entrepreneurs to relocate abroad.

The self-assessment returns from January, when most income tax is paid by the better-off, have been eagerly awaited by the Treasury and government ministers as they provide the first evidence of the success, or failure, of the 50p rate. It is the first year following the introduction of the 50p rate which had been expected to boost tax revenues from self-assessment by more than £1billion.

Although the official statistics do not disclose how much money was paid at the 50p rate of tax, the figures indicate that it is falling short of the money the levy was expected to raise.

A Treasury source said the relatively poor revenues from self-assessment returns was partly down to highly-paid individuals arranging their affairs to avoid paying the 50p rate.

“It’s true that SA revenues are a bit disappointing — it’s still early, but it looks like there’s been quite a lot of forestalling and other manoeuvring to avoid the top rate,” said the source.

However, another Treasury source added that the tax deadline had been extended by two days because of industrial action at HM Revenue and Customs. Therefore, it was too early to begin assessing the revenues raised from the 50p rate of tax because about 20 per cent of self-assessment tax is paid in the hours before the deadline.

Francesca Lagerberg, head of tax at Grant Thornton, an accountancy firm, said: “My guess is that because the 50 per cent rate was flagged up in advance many taxpayers, particularly those with their own businesses, decided to extract dividends ahead of the change. It highlights the fact that high tax rates don’t always deliver high tax revenues.”

George Osborne, the Chancellor, is expected to receive a definitive analysis from the revenue on the 50p rate before next month’s Budget. The Liberal Democrats have insisted that it must stay because it is important to demonstrate that the rich are paying their fair share.

David Laws, a Lib Dem MP, has also suggested reducing tax relief on pensions for top earners.

The prospect of higher taxation on pensions comes as savers complain that low interest rates and quantitative easing have pushed down returns on savings and pensions.

Charlie Bean, the deputy governor of the Bank of England, last night insisted that those people should accept the pain as the price of restoring the wider economy to health.

The Confederation of British Industry, in its Budget submission today, urges ministers not introduce new levies on the rich, warning that the UK “will become a less attractive location for entrepreneurs and key employees”.
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Old Feb 22nd, 2012, 03:47 PM   #2
PocketChange
 
 
Join Date: Jul 2008
Posts: 2,055
Reality is over 50% of US employed population are paid from collected taxes: Military, Government, Prime Contractors.

Income Taxes capture a minimal cut compared to transactional taxes (Sales, Gas, Telco etc)

Pretty simple math: Cut the amount of companies, agencies and people paid from taxes down from 50% to 10% and we will have a surplus just with a 10% transactional tax.

Problem is no one in this sector wants to give up their gravy train, benefits, pensions, bail outs etc. Classic Money and Power corruption.
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Old Feb 22nd, 2012, 08:16 PM   #3
Maverick74
 
 
Join Date: Mar 2002
Posts: 19,523
Kind of quiet around here....
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Old Feb 22nd, 2012, 08:28 PM   #4
Max E. Pad
 
 
Join Date: May 2011
Posts: 7,900
This pretty much sums up how the mind of a liberal works, even though the higher tax rates failed to generate any new revenue we must keep them because the rich have to pay their fair share.... for them taxes are used as a measure to punish the rich, and they dont give a shit if it does absolutely nothing to help the poor out in any meaningful way, because they dont care if income inequality becomes narrower only by bringing the people on the top down, they just want to make the gap narrow, and they know damn well that their policies will not bring people on the bottom up, so its all about punitive tax measures for the people on top to bring everyone down to the same level.

Historically this is how communism/socialism has always worked, make everyone poor so that everyone can be equal.

Quote:
Quote from Maverick74:


George Osborne, the Chancellor, is expected to receive a definitive analysis from the revenue on the 50p rate before next month’s Budget. The Liberal Democrats have insisted that it must stay because it is important to demonstrate that the rich are paying their fair share.
    Quote
Old Feb 22nd, 2012, 08:33 PM   #5
Lucrum
 
 
Join Date: Dec 2003
Location: Canton, Georgia
Posts: 38,520
Quote:
Quote from Max E. Pad:

This pretty much sums up how the mind of a liberal works, even though the higher tax rates failed to generate any new revenue we must keep them because the rich have to pay their fair share.... for them taxes are used as a measure to punish the rich, and they dont give a shit if it does absolutely nothing to help the poor out in any meaningful way, because they dont care if income inequality becomes narrower by bringing the people on the top down, they just want to make the gap narrow, and they know damn well that their policies will not bring people on the bottom up, so its all about punitive tax measures for the people on top to bring everyone down to the same level.
BINGO!
    Quote
Old Feb 22nd, 2012, 08:49 PM   #6
pspr
 
 
Join Date: Sep 2002
Location: TX
Posts: 18,869
Politicians seem to need to relearn this lesson every few years. It should be inscribed on the inside of the Capitol building where it can be plainly seen:

"Raising Taxes Does Not Necessarily Increase Revenue!"
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