Saved! Saved!

Yes! This will do it! Labour is saved and there will indeed be a fourth term!

A supertax on high earners should be considered as part of Gordon Brown’s autumn fight-back, a minister says today….. Last month a former minister, Chris Leslie, called for an extra 10p in the pound tax for earnings above £250,000, the threshold Lewis is believed to favour. The Treasury estimates this would yield £3.5 billion a year, about the same amount as it collects from inheritance tax.


£3.5 friggin\’ billion? Out of a governmental spend of £600 billion or so? That\’s a rounding error, not a masterly political stroke.

Look, the rich (the top 1%) have annual incomes of the order of £90 billion. They already pay some £30 billion of this in tax. Their nett incomes are thus, in aggregate, £60 billion. We could take all of this in tax, every last penny, and it really wouldn\’t make much difference at all. Well, OK, they\’d all leave, but we could do it once maybe. And get 10% of the amount the govt spends each year. Once.

We\’d cover the PSBR: no, not the national debt, just the amount it increases by, with some change left over… some 3% of this year\’s spending. Maybe 1.5% of GDP, once.

This is the thing that so many people seem to find it so hard to understand. There really aren\’t that many rich people and they really don\’t have all that much money. Leave aside all that Laffer Curve stuff for a moment and get your head around the facts. You cannot run a large State simply by taxing the rich. There just aren\’t enough of them and they don\’t have enough money.

8 thoughts on “Saved! Saved!”

  1. “This is the thing that so many people seem to find it so hard to understand. There really aren’t that many rich people and they really don’t have all that much money.”

    You commit the error of assuming the left-wingers want to tax ‘the rich’ because they want the money. They don’t, they just hate ‘the rich’.

    Until a left-winger becomes rich (like Al Gore), then they develop a blind spot.

  2. The most important aspect separating the socialisms is who to punish.

    International Socialism: Business Owners
    National Socialism: Jews etc.
    Transnational Socialism: Rich White Males

  3. dearieme live up north somewhere do we? You sure as hell wouldn’t say that if you lived in the south east and aren’t on benefits.

  4. The very definition of the word “rich” means “few people with lots more money than everyone else”.

    Just as socialism uses the perpetual war on poverty (defined relatively so that poor people will always be with us), they have a perpetual war on the rich (defined relatively, so there will always be someone to hate).

  5. dearieme – among others, 25K is *below* the rate that a decent carpenter gets. Or do you think that they are rich bar stewards too?

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