Skip to comments.If you want the rich to pay more tax, let them grow even richer
Posted on 09/26/2012 6:02:59 AM PDT by SeekAndFind
One of the most pernicious myths in the current political debate is that the rich dont pay much tax.
This is nonsense, as even a cursory analysis of the official statistics reveals. The top 1pc, who earn £156,000 or above, will pay a whopping 24.2pc of all income tax this year, a much higher contribution than their 10.8pc share of all income. The top 10pc of earners those on at least £50,500 will pay 55.3pc of all income tax, also far more than their income share.
The most astonishing figure of all is that for the very wealthy: the top 31,000 taxpayers, who make £500,000 or above, pay £14.8bn in income tax, more than the £13.9bn paid by the 13.6m taxpayers on £20,000 or below (plus millions more who earn less than the personal allowance and pay no income tax).
About 2,000 individuals pay £2m each on average in income tax alone; each of these pays the wages of at least 80 nurses, keeping the welfare state in business, even before contributions to other taxes, such as VAT and duties, are taken into account. High-earners also usually employ people, generating additional tax.
Of course, some people break the law. A minority engages in extreme legal avoidance the Government must continue to shut down remaining absurd loopholes of the sort used in the past by some entertainers.
The tax system is horrendously complicated; the taxation of companies in particular has become horribly arbitrary. We must tear up the tax code and start again. But when it comes to taxes on income from labour and dividends, the sums avoided by wealthy domiciled UK residents at least using any reasonable estimate are at worst a small fraction of what is already being raised.
(Excerpt) Read more at telegraph.co.uk ...
In the US, that number is 36% to 40% of all taxes, yet way too many Americans somehow believe that the US does not have a progressive income tax and that the rich don't pay enough. Wake up people, the US has one of the most progressive income taxes on the face of the earth.
Rich Wealth = Relative Net Worth
Income = Relative New Work