General Election 2010

[Stu]

Originally Posted by simesb

Think you maths is a bit faulty there. If everybody got taxed at 20%, then everybody pays the same proportion of their income. As the rates are banded, those in the higher band pay a higher proportion of their income in tax than those in the lower rates.

Yes, but NI has an upper limit above which you stop paying.
Also the rich are better placed to use legal tax avoidance schemes e.g. pension contributions

Originally Posted by Stu

Yes, but NI has an upper limit above which you stop paying.

NI is not the same as PAYE. If you want to start looking at total taxation then you are into a whole new world. More income means more spending which means more VAT/Stamp Duty/Death Duties etc.

Originally Posted by Stu

Also the rich are better placed to use legal tax avoidance schemes e.g. pension contributions

Since when was saving a tax avoidance scheme?

Edit cos I'm really annoyed about that last statement: The money I save for my old age (which will help to keep taxation down in the future) is effectively taxed each year reducing the final amount. Then some of it attractes tax upon payment. It really is one of the more stupid things you've said.

[Stu]

Originally Posted by simesb

NI is not the same as PAYE. If you want to start looking at total taxation then you are into a whole new world. More income means more spending which means more VAT/Stamp Duty/Death Duties etc.

OK, hopefully Jabba will explain himself

Since when was saving a tax avoidance scheme?

Not sure I understand you, I know labour have taxed pensions as best they can, but they are still fairly tax efficient

[G]

Originally Posted by Stu

I know labour have taxed pensions as best they can, but they are still fairly tax efficient

That if you can reach the new age at which your entitled to one.

It will have gone up to 80 by the time I can claim it.

"Vote for policies, not personalities" cries the website...

take the survey to see who you should be voting for...

http://voteforpolicies.org.uk/

Originally Posted by simesb

Since when was saving a tax avoidance scheme?

Pensions!! You pay in from your gross salary, meaning that higher rate payers have saved paying tax on it at 40%. When the person retires and the pension is drawn the person is often only paying tax at the basic rate.

Regarding my earlier comment, I wasn't referring solely to income tax. I accept that direct taxation like income tax is progregressive.

However, when indirect taxation is taken into account, e.g. Council Tax, VAT on fuel bills, VAT generally, fuel duty, alcohol duty, road fund licence, and many others, those on lower incomes are paying more of their income in tax proportionately than those on higher incomes.

Also, as Stu says, those on higher incomes can often afford to take advice on (legal) tax avoidance. Consider this:

Highly paid company executive gets a significant pary of his remuneration package as shares. This is not subject to income tax. He then sells these shares. He is liable to Capital Gains Tax at 18%.

[G]

Originally Posted by keithd

"Vote for policies, not personalities" cries the website...

take the survey to see who you should be voting for...

http://voteforpolicies.org.uk/

Blimey is all I will say to that lol... not what I was expecting.

[keith_d]

The age at which you can claim a pension depends on lots of factors. However, I suspect that by the time I reach 65 the only people entitled to a state pension will be those over 100, simply because the government won't have the money.

Even those nice 'safe' civil service pensions will be under threat, so the government will be looking to tax anyone who has anything.

But this isn't really relevant to the current election campaign.

Originally Posted by simesb

Since when was saving a tax avoidance scheme?

Believe me, it is.

Originally Posted by simesb

More income means more spending which means more VAT/Stamp Duty/Death Duties etc.

Yup, but more income also means more saving. Saving doesn't attract indirect taxation e.g. VAT.

As for Death Duties, this govt has increased the threshold on several occasions and, also and more importantly, in 2007 made the transfer of a spouse's "Nil Rate Band" to the surviving partner automatic and back-dated it in perpetuity. For couples who were married at the time of the first partner's death the "Nil Rate Band" for the surviving partner is currently £650,000.

http://www.inheritance-tax-online.co...ax_&_wills.htm

A nice little sweetener for the better off, eh?