I kinda feel there should be some progressive taxation, because that's the idea of the welfare state: those who can afford to helping those who can't afford to help themselves (through all the faults of the current welfare system, this is still important). That said, yes, I agree, they shouldn't be paying a 90% tax rate. The main reason I think is that the super rich don't pay that % of tax anyway. It essentially just penalises the upper-middle-classes who can't afford off-shore banks et al. If all the rich people actually paid the tax they owed, there probably wouldn't be a problem, whether it was 20% or 50%.
(Original post by FrigidSymphony)
Yes, those poor rich people, it's such back breaking work deciding where to invest your huge capital and which tax experts to pay to find loopholes for you...
You would be Scottish
Some rich people earned their money and some didn't but the law has no way of differentiating between them. Personally I think our current system is good, and we should be focussing on tax evasion through foreign banks rather than changing what we legally have already.
Edit: I love you, Scottish people, just can't resist a good stereotype.
(Original post by Poppy-Fields)
Must be pretty hard to know half of what you earn if taken away before you can even touch it... If I was having half my pay taken I'd be employing someone to find loopholes so I didn't lose it too...
Mitt Romney is unemployed. The billions he makes come from internal investments, carefully arranged to provide income for the financiers and investors involved therewith. Romney does not have a job, does not do work, does not struggle and take risks for his money. He is gaming the system, and neoliberal (i.e. Republican in the US and Tory in the UK) policies enable him and the rest of the 1% to do so. He is not "earning" money the same way someone like you or I might do so. This is a real example of the satirical definition of a corporation by Ambrose Bierce: "Corporation, n. An ingenious device for obtaining individual profit without individual responsibility."
There's a common myth that poor people are poor because they don't work hard enough. This may be the case for some people, but mostly, people are poor because they were born poor and never received the opportunity to be socially mobile.
By damning the poor and taxing them out of their minds, they are being deprived of that opportunity to be socially mobile.
How does a family encourage their kids to go to university and get a well paid job when they can barely afford to pay the bills and need their children to work from an early age and contribute where possible?
The rich reap the true benefits of the country; an economy in which they can thrive and all the major institutions being fundamentally geared towards their social class. Due to this, they can afford to bear the brunt a little bit more. Besides, taxing the rich a few percent more won't exactly harm them. Oh woe is me, my net income is £78,000 p/a instead of £87,000 p/a.
I'm pretty sure there's evidence that flat rate tax systems bring in more money than progressive ones... I haven't seen it though so if anyone could point me in the right direction that'd be helpful.
There's also the fact that if people are taxed highly, there is more incentive for them to avoid it but if you tax people less it's not worth the time or effort to find ways around it, so they'll pay more than they would if the taxes were actually higher.
Also, I just feel that taking 50% of someone's earnings, no matter how much they make is just too far. It seems to suggest that the state has more right to your money that you do.
Also, if people are being taxed that much (and don't avoid it, as many people in this tax bracket don't since they don't actually earn enough to pay for the accountants) why would they bother to earn it at all? They could get a lower paid job with lower hours, see more of their family and end up with the same amount of money in their pockets and the state loses the revenue of that extra tax.
Bottom of the page shows the tax brackets.... it's ridiculous!
i was pretty horrible at economics so I'm not exactly in touch with everything in society or whatever, but the fact that the rich are essentially being 'discouraged' from earning a lot would probably want to make me move elsewhere. I come from a lower/middle class family, but this level of taxation for higher earners is just