She\’s still not quite got it, has she?
Those registered as a non-domiciliary, absolved from British tax although they live here, would pay a flat rate of £25,000 a year.
Err, no. Income made in hte UK is taxed exactly the same as that of any other resident\’s. It\’s the taxation of overseas income that is at issue here. If you want to think of it in moral terms (which no doubt Polly would), well, what right does the UK State have to income made in, say, Russia? By a Russian?
It\’s not just the non-doms and non-residents, but the private equity tax avoiders and all the mega-rich.
Non-residents now? What, you mean that people who don\’t even live in the UK should be paying UK taxes?
The UK has one of the lowest top rates in the OECD 30 nations, yet the rich use the same roads, services, police and national security to conduct their business in a well-regulated environment, with the NHS to save them when their Porsches crash.
Now that is interesting. The implication of course is that the rich should be paying more because they use the same services. That there might be some fixed amount that people should pay for services does not, of couse, cross Polly\’s mind. However, let\’s look a little more closely. How much of all of the tax take do the rich contribute? And how does that compare to other countries? This is the top 30% of the people (just because that\’s the stat I found) but it doesn\’t actually show what Polly would like it to show.
In the UK, the top 30% of the people, the richest 30%, pay 62% of th total tax take. This is lower than the US for example, at 65% or so. But what about the Nordics? Those perfect social democracies, which Polly would so dearly love us all to be like? Hmm. Finland 56.8%, Norway, 53.8%, Sweden 53.3% and Denmark 48.7%.
So, err, for us to become the sort of society which Polly would like we should be lowering the tax take on the richest 30%.
As house prices rise, more people fear that their estate will creep into the £350,000 level most recently set by Gordon Brown; 37% of estates are now worth over £350,000 (homes, pensions, cash), so if everyone died today then 37% of estates would be liable. But everyone is not dying today. According to Carl Emmerson of the Institute for Fiscal Studies (IFS), by the time people grow old and die they have divested themselves of money, giving it away when children and grandchildren need it, downsizing their homes to spend on cruising, enhancing their pensions or going into long-term care.
Didn\’t Polly recently call for al lifetime gifts to be taxed as inheritances? I\’m sure she did you know.
People think IHT is an unfair "double taxation" out of already taxed income. But no one pays it from income: it is only paid after death by inheritors.
No it isn\’t! it\’s paid by the estate! If £5 million is left to one person or the same £5 million is left to 100 different people the tax paid is the same. If inheritances were taxed at the level of the recipient then there\’d be a great deal less fuss about the whole subject.
Is it worth asking, you know, pleading almost, that journalists know what they\’re writing about?