Taxing the rich

Sounds sensible:

In a separate move, the budget will be used to announce plans forcing executives and celebrities who use private jets to pay air passenger duty for the first time.

Osborne plans to consult on the details but hopes the proposals will raise tens of millions of pounds.

In fact, it rather flabbers my ghast to realise that they don\’t already pay such.

Pigou Taxes are supposed to apply to all of a specific externality, not just some instances of them.

8 thoughts on “Taxing the rich”

  1. the obvious question is how will this duty be collected? Will the customs/immigration officials have to perform this role?

  2. Otherwise agree, it’s fair enough to extend the tax and that should have been there from the start (though I am a complete outsider to this), but…

    …that tens of millions of pounds will be raised as tax revenue from private jets? Rilly? Assuming you can collect £100 per passenger, do you really have hundreds of thousands of executive and celebrity trips from Britain? Hardly.

  3. In fairness, the reason for the exemption is actually to cover the little planes that provide a lifeline across the highlands and especially islands of Scotland.

    However, in fairness it would have been better to target the exemption specifically at these lifelines rather than to just do it based upon the size of the aircraft.

    Better still, abandon this utterly pointless tax in the first place. Warble Gloaming has about as much basis in reality as the Tooth Fairy.

    P.S. Ritchie – Go Fuck Yourself!

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