The Student Room Group

Why does everyone want to tax the rich more?

Came from a poor immigrant family and worked hard to go to a good university and got good grades and currently now have a good paying job in banking.
I don't really understand why people constantly want to to tax higher earners that aren't millionaires, and they always go on about cutting banker bonuses.

In my opinion, there should be heavier taxes for those really high earners and not those on 70k etc
Reply 1
It's pretty simple. When the government spends money, that money ends up in someone's bank account. With the UK covid relief scheme, the furlough, I think around 600 billion pounds was spent by the government to prop up people's wages. This money got largely spent on rent, mortgage, food, telecoms, energy etc. In other words this money was given, in one way or another, to the rich, the people who ultimately own/control big business.

So now you have rich people with, essentially, too much money. But they have to keep their money moving, so what do they buy? They buy assets. Houses, shares etc. This creates asset price inflation which harms the poor. In other words, the rich have a bunch of money, much of which passes from the government to them, which they don't need, but which is in circulation, either as liquid cash or in assets. This means you need a system to tax big wealth, reduce the money supply, curb inflation and allow government to spend on pro-poor social programs. This isn't about jealous poor people taking from the rich, it's about allowing for some equalisation of wealth, which will help the majority.

Alas right now we have a UK government which is religiously convinced that taxes=theft, and that the way to 'make country rich' is to lessen even the already low tax burden on the rich. But as already stated, the rich don't actually need all their money, and they have no way to productively invest that money.
Reply 2
Original post by wtw123
Came from a poor immigrant family and worked hard to go to a good university and got good grades and currently now have a good paying job in banking.
I don't really understand why people constantly want to to tax higher earners that aren't millionaires, and they always go on about cutting banker bonuses.

In my opinion, there should be heavier taxes for those really high earners and not those on 70k etc


So you want to tax the rich more then?

Haven't you answered your own question - you want to pay less tax and the extra tax to come from those richer than you...
I don't want them to be taxed more, getting them to avoid tax dodging would be a good start rather than raising taxes on them.
Original post by Jingo7
It's pretty simple. When the government spends money, that money ends up in someone's bank account. With the UK covid relief scheme, the furlough, I think around 600 billion pounds was spent by the government to prop up people's wages. This money got largely spent on rent, mortgage, food, telecoms, energy etc. In other words this money was given, in one way or another, to the rich, the people who ultimately own/control big business.

So now you have rich people with, essentially, too much money. But they have to keep their money moving, so what do they buy? They buy assets. Houses, shares etc. This creates asset price inflation which harms the poor. In other words, the rich have a bunch of money, much of which passes from the government to them, which they don't need, but which is in circulation, either as liquid cash or in assets. This means you need a system to tax big wealth, reduce the money supply, curb inflation and allow government to spend on pro-poor social programs. This isn't about jealous poor people taking from the rich, it's about allowing for some equalisation of wealth, which will help the majority.

Alas right now we have a UK government which is religiously convinced that taxes=theft, and that the way to 'make country rich' is to lessen even the already low tax burden on the rich. But as already stated, the rich don't actually need all their money, and they have no way to productively invest that money.

I think you just explained why trickle down economics is idiotic lol.
Not everyone does.
Seems like you don't.
I don't.
Donald Trump, Iain Duncan Smith, Kwasi Kwarteng and Liz Truss don't.
Original post by wtw123
Came from a poor immigrant family and worked hard to go to a good university and got good grades and currently now have a good paying job in banking.
I don't really understand why people constantly want to to tax higher earners that aren't millionaires, and they always go on about cutting banker bonuses.

In my opinion, there should be heavier taxes for those really high earners and not those on 70k etc


Its because they want the status quo to continue to the point where they make no alternations to their own lifestyle.

You will notice that most Brits do not want to be efficient like the Germans are.
They want constant higher wages without changing the way things are done.
They don't care about business or capital needs. They just want their cake and sod who provides it.

You will notice that nearly every private sector and public sector is striking for a wage rise. Yet businesses cannot afford a wage rise and the only reason why there where mass profits in the market is because stocks and cryptos pumped due to money printer money.

The plebs arent financially educated so they understand none of this. This will lead to a recession for sure.
Original post by illegaltobepoor
Its because they want the status quo to continue to the point where they make no alternations to their own lifestyle.

You will notice that most Brits do not want to be efficient like the Germans are.
They want constant higher wages without changing the way things are done.
They don't care about business or capital needs. They just want their cake and sod who provides it.

You will notice that nearly every private sector and public sector is striking for a wage rise. Yet businesses cannot afford a wage rise and the only reason why there where mass profits in the market is because stocks and cryptos pumped due to money printer money.

The plebs arent financially educated so they understand none of this. This will lead to a recession for sure.

Don't make me do it.
Original post by Djtoodles
Don't make me do it.


What strike? Go ahead.
Means more work for grafters who work with business and capital.
Original post by illegaltobepoor
What strike? Go ahead.
Means more work for grafters who work with business and capital.

I retired this year, so no strike required lol.

I know you think grafters is some kind of compliment but the smart don’t graft they play.
Higher income groups disproportionately vote Conservative. The Conservative Party have wrecked the public finances by spending billions that we simply do not have. It is right and proper that those responsible for the damage done due to their poor decisions at the ballot box pick up the bill.
People should be allowed to make as much money as they like, providing it is done legitimately, as in no corruption or dodgy deals.
(edited 1 year ago)
Reply 12
yeah but some people define ~90k as rich and I don't think it is - especially in london. So I was thinking surely the government could tax the billionaires and multi millionaires more so that those ~70k earners won't have their pay reduced disproportionately
Original post by Quady
So you want to tax the rich more then?

Haven't you answered your own question - you want to pay less tax and the extra tax to come from those richer than you...
Reply 13
Original post by wtw123
yeah but some people define ~90k as rich and I don't think it is - especially in london. So I was thinking surely the government could tax the billionaires and multi millionaires more so that those ~70k earners won't have their pay reduced disproportionately


Some people define those on £60k (ie higher rate tax payers) as rich.

Those people think those people living it up on £70k should pay more tax.

Yeah, London does suck though.
Reply 14
Original post by wtw123
Came from a poor immigrant family and worked hard to go to a good university and got good grades and currently now have a good paying job in banking.
I don't really understand why people constantly want to to tax higher earners that aren't millionaires, and they always go on about cutting banker bonuses.

In my opinion, there should be heavier taxes for those really high earners and not those on 70k etc


Because the poor and idle want something for nothing and the actual rich are more than capable of dodging any inconvenient taxes, ergo its the middle classes who get royally screwed.
Take her in NZ for example, hobos and other miscreants are currently being put up in hotels and moptels at the tax payers dime whilst those who actually pay tax dont get a damn thing in return, not even child support. I can see perfectly well why people take exception to this and refuse to pay their taxes when they have to sit there and watch it get ****ed up the wall.

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