Highly amusing column today.
He did talk firmly of "the need to create a stronger sense that residence and citizenship means responsibilities too". Did he mean the responsibilities of the hyper-rich and non-doms to pay taxes? Did the name "Sir" Philip Green pass his lips? Of course not.
Well of course not. Sir Phillip Green is not a non-dom. He is, at least as far as I know, a resident of the UK for tax purposes. His wife is not a resident of the UK, let alone a non-dom, so invoking either of their names on this point is ludicrous.
Instead he boasted of Labour\’s deep cuts in corporation tax, which now at 28% is among the lowest in the west.
Let\’s leave aside the well known point that corporation tax isn\’t in fact paid by the company, that it, in reality, depresses the wages of the workers. Let\’s instead just have a look at those rates: Table II 1
Even with the new 28% I can\’t quite see that this is "among the lowest in the west", unless we\’re talkiing about a rather large definition of "among".
He didn\’t remind them that business interest costs are off-set against corporation tax.
Well, of course not. Only an insane taxation system would try to stop that. Look Poll, we might be talking about the CBI, we might be talking about Gordon Brown, but even so there\’s no reason to believe that we\’re talking to complete and total idiots.
Intellectually Labour has capitulated, for a decade using the language of "tax burdens", boasting of income tax cuts while letting the wealthy pay less than low earners.
Come along now, not even you actually mean that. There is no way at all that the wealthy pay less than low earners. Even at the 10% taper relief rate somone cashing in a £ 1 million in stock pays £100,000. That is, as you will note, rather more than a cleaner on £6 an hour will pay over the course of a year (leaving aside the point that someone on that low wage might well, after benefits and tax credits, actually have a negative tax rate rather than a positive one).
A generation of voters has never heard the basic reasons why they pay tax, and why it is the most necessary and honourable part of citizenship. Why avoiding, let alone evading, it is dishonourable.
It is to laugh. Dishonourable to avoid (ie, legally order your affairs so as to reduce your tax bill) the depredations of the State? Err, have you told your boss this yet? You know, Alan Rusbridger who took a tax efficient £175,000 addition to his pension fund as a bonus?
When you describe an 8% rise for some and a cut for others as \’an 80% increase\’, you conveniently forget that CGT was 40% when we came to power. Now it is to be a mere 18%. That is still lower than the lowest income tax,
True enough, fair point. Of course, the lowest income tax rate was just doubled by Gordon Brown in the last Budget.
Now it is to be a mere 18%. That is still lower than the lowest income tax, and in the immortal words of one private equity boss, less tax than your cleaners pay. When you complain that 18% is too heavy a burden on risk, enterprise and the sweat of your entrepreneurial brows, tell me why you think a care assistant or a dinner lady should pay more tax than you?
As above, you\’re getting very confused between tax rates and tax amounts. The care assistant or dinner lady does not, in any way, pay more tax. They might pay a higher marginal tax rate, but they do not pay more in cash, nor do they pay more as a percentage of total income.
The truth is, Britain is still one of the least taxed of the countries with stable democracies and well-regulated economies.
!?!?! With the Government swallowing 45% of GDP? Please…
Top income tax rates are average in the OECD, capital gains tax among the lowest, property taxes virtually non-existent.
And that is simply quite glorious. Howlingly wonderful.
Components of taxation > Property tax (most recent) by country
So, err, when does The Guardian hire a fact checker for our Poll then?
Ooooh, and a glorious gotcha in the comments:
Does Ms Toynbee find it at all ironic that her salary for writing this is paid by The Scott Trust, an organisation established specifically to avoid the payment of inheritance taxes.