Any contributions welcome. Thisdiscussion was getting out of hand on the D.S.E. thread.
Should a wealth tax be brought back or a tax bracket for any one over 150000 income (lets say) have a new band brought in to ease burden on middle and lower income taxpayer?
What do you mean by Wealth Tax?Originally Posted by Minister3
As for a new higher bracket, no there shouldnt be one, people that wealthy can afford good Tax Consultants who will enable them to avoid this.
Are you familar with the Laffer curve? I beleive if you increase the tax rate you will collect less.
If you want to collect more tax and ease the burden on the middle and lower brackets - bring in a simple flat tax of say 20%, that will close the loops holes so that everyone pays their fair share.
Escept a flat tax isn't fair. It hits the lowest-income groups hardest.What do you mean by Wealth Tax?
As for a new higher bracket, no there shouldnt be one, people that wealthy can afford good Tax Consultants who will enable them to avoid this.
Are you familar with the Laffer curve? I beleive if you increase the tax rate you will collect less.
If you want to collect more tax and ease the burden on the middle and lower brackets - bring in a simple flat tax of say 20%, that will close the loops holes so that everyone pays their fair share.
Banned temporarily by politics.co.uk (ie this site) so as not to "offend" the Brits during Mrs. Windsor's visit.
Still censored because I cannot start a thread!
Actually that's an egregious misrepresentation of what the Laffer curve is about. I know you know what it actually means so I have to wonder why your are being deliberately misleading.
I'm pretty amused at you trotting out that tired old horse about there being no point in taxing the rich since they won't pay it anyway. Did you learn that from your hero (George Junior) or had you heard it before?
Actually I moved the discussion over from the D.S.E. thread as it was moving off topic .We were talking about local authority rates and it moved to the companies act where more and more professionals are opting out of the paye sector or self employed sector and setting them selves up as "Sole Traders" this is particularly pertinent to IT pros/pharmaceuticals/architects surveyors and engineers who are not going on staffi n companies but who are contracting themselves to the company By being sole traders they they can effectively write off most of their tax paying onaverage 9to 11%.As by nature of their work they have no office or no fixed workplace so they pay no rates either.The average income of these individuals ranges from 85k to 200k per year. Before this they were paying this as paye or staff in a company.This trend has increased in the past few years showing that when people earn a certain high level on paye they move over to this system and end up paying less when they earned less.
Secondly I dont propose a wealth tax on wealth or assets used to generate economic activity or employment but on personal salaries and incomes of wealth controllers.Say if a company director draws down a salary of 200-300k per year then this should be treated simalry to paye and he should not be able to write off tax against expenses for the running of his company on this income to reduce the tax applied
The Laffer curver doesn't apply to all tax system or economies .The irish economy has defied a lot of economic theory curves and forecasts in the last few years.So to use the Laffer as only one example is simplfying things a little too much
In then context of a flat tax system I think its correct, of course I guess you hate the idea of flat tax
Seems minister3 is wanting to tackle that very old horse in this thread so maybe you've already made up your mind.
And yet I think my favoured system would tackle your problem without stiffling entrepreneurship. The self-employed/contracter would still have to pay their 20%.
I think the Irish economy and its unprecedented low corporate tax rate which has drawn in amazing record corporate taxes is a point in favour of the laffer curve.
How would the low income group be harder hit by a 20% rate rather than the current rate?
Of course it is fair, everyone pays the same amount and the more you earn the more you pay.
Minister3, your comments about sole traders and contractors are somewhat off the mark.
Dan Sullivan. I was back but we still couldn't all have a vote.
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