Carol Wilcox says:
June 4 2016 at 8:27 pm
It is unearned income (money making money). The marginal tax rate on earned income (IC and NI) is minimum 31%. That’s the justification.
Dear God, if only these people understood how fucking difficult it is to make a profit.
Or how important it is that they do make a profit.
I guess you don’t need to worry about making profits when you’ve got “research grants” upon which “all tax due” (i.e. zero) is paid…
The biggest profit margin I’ve ever made was on the book I ran on the school sports when I was seventeen. I am therefore unsurprised when I see all the bookies’ ads on the telly.
P.S. She’s even got the ruddy 31% wrong.
Yes, for me 20% income tax plus 12% NI comes to 32%. But that’s probably just my neo-liberal patriarchal mathematics. Perhaps I ought to ask for the extra 1% back and say that Carol says I should have it?
Nice to see that sort acknowledging NI as tax though.
From the hwfisher site, albeit a few years ago: “if an LLP was used and the member had a profit share of £38,227 for the year ended 05/04/13, the combined income tax and NIC liability would result in an effective tax liability of 23.33%”. Hmm.
As opposed to the 40.25% Carol is thinking of on marginal income above £10,600, assuming we treat employer’s NI is paid for by the worker. Not quite directly comparable but if Carol is a non-public sector worker earning between 10.6k and 43k, then she is being shafted by the system, and should rightly be angry. It’s just where her anger is being directed that needs realignment.
‘Dear God, if only these people understood how fucking difficult it is to make a profit.’
That’s because you are doing it all wrong. (and yes Tim, you know exactly what I mean)
There are twelve Carol Wilcoxes based in the UK with LinkedIn accounts (after two obvious duplicates are eliminated).
Assuming ours is one of them, which of these is it?
1 CEO at Naturediet Pet Foods Ltd, Ipswich
2 Director – Uni-Guard Fire Protection Ltd, Portsmouth
3 Experienced Garden Design Professional, Enfield
4 Civil servant at HM Revenue & Customs, Newcastle upon Tyne
5 No description/location given
6 Social Worker at Bristol City Council, Bristol
7 Independent Computer Software Professional, Bournemouth
8 No description/location given
9 staff nurse at private sector, Preston
10 Artist painter printmaker, Canterbury
11 Senior Receptionist, no location given
12 health care nurse at NHS Trust, Northampton
That’s unfair Andrew – too much prying into the person for me. Any rebuttals should be about her philosophy and ideas.
Andrew,
I didn’t think it was a secret? For example:
http://www.labourland.org/officers/
https://www.youtube.com/watch?v=w3D6mHHaqF0
And one doesn;t have to be on LinkedIn – after all, isn’t that just the “pro” version of Facebook..:)
BobRocket
I would ordinarily be with Tim on this one.
Hence, hmmm, is there a link – do tell…
Richard
Re marginal then – at least at basic rates, otherwise there are higher rates anyway – don’t forget Ers NI > hence, 20 +12 +13.8 – based on 113.8 cost to the employer.
(OK, HM’s already covered it – 40.25% above)
And the effective 60% income tax band at £100k – £122k:
add on 2% and 13.8% and you get ….. too bloody much.
I’ve never earned anything like £100k p.a. but I still advocate scrapping that band.
Unearned money (money making money) is a definition of the interest earned in excess of inflation on savings deposits.
Oh, slight problem – that is less than nothing.
Still, if she studied Economics at essex in the 1980s we should not be too surprised
Here is a survey asking how much profits companies make after tax. The average answer is 36%. In fact for the S&P 500 the average is about 7%. Even that is skewed by the likes of Apple and Microsoft. Taking them out and the average fell to around 3%.
I now love asking lefty nutters the same question, and most believe it is about 25% with some thinking 50%. And of course none will accept Amazon makes less than 1%.
Here is a table by NYU stern:
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/margin.html
and article at AEI
https://www.aei.org/publication/the-public-thinks-the-average-company-makes-a-36-profit-margin-which-is-about-5x-too-high/
Carol Wilcox, being the organiser of Labour Land Campaign, might point to Vancouver as a place to make unearned profits easily. (See “Sitting on your assets: Vancouver land). Not that anything of the kind ever went on in London .God forbid.
DBC Reed
From memory, your refs to Carol usually contain praise for her as affable, competent, patient or other such attributes, as opposed to the intolerant, insulting Nazi that some of us believe her to be.
The problem in Vancouver is having an asset to sit on in the first place.
They have a lovely little loophole that lawyers don’t have to report financial transactions as it would be a breach of client privilege and the realtors don’t have to report a suspicious transaction as they are dealing with a lawyer
“believe her to be”
That’s because you are stupid.
Like Van who believes she is a member of the Communist Party, it’s just lazy googling.