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Very interesting article in The Telepgraph from Fraser Nelson.
George Osborne wouldn't like to admit it, but the Tories are really milking the rich - Telegraph
It has been politically difficult – Ed Miliband chastises Mr Cameron for his “tax cut for millionaires”. But something remarkable has happened: those millionaires are now paying more tax than ever. The best-paid “one per cent” are spoken of as if they all employ clever accountants to wriggle out of paying any tax. Yet figures show they now earn 13 per cent of all paid income, and provide 28 per cent of the income tax collected.
This is higher than at any point under the last government, and twice as high as under the Callaghan government (when the top rate of tax was 98 per cent). We are witnessing what John F Kennedy called the “paradoxical truth” that lower tax rates can mean higher tax revenues. When people are taxed less, they tend to earn (or declare) more. It has taken Britain into a golden era of milking the rich.
The article goes on to contrast how Hollande's tax rises in France led to falls in the tax take.
Another point in the article is that the bottom 50% are paying a smaller share of income tax than ever before.
There is a lot of moaning that the 'nasty' tories only look out for the rich. But as well as inequality falling (at its fastest ever level) under this government, we now see that the tax burden has shifted off the poorer and onto the rich too.
This shift is a remarkable achievement given the terrible state of the economy and the constraints that the government has had to work within.
George Osborne wouldn't like to admit it, but the Tories are really milking the rich - Telegraph
It has been politically difficult – Ed Miliband chastises Mr Cameron for his “tax cut for millionaires”. But something remarkable has happened: those millionaires are now paying more tax than ever. The best-paid “one per cent” are spoken of as if they all employ clever accountants to wriggle out of paying any tax. Yet figures show they now earn 13 per cent of all paid income, and provide 28 per cent of the income tax collected.
This is higher than at any point under the last government, and twice as high as under the Callaghan government (when the top rate of tax was 98 per cent). We are witnessing what John F Kennedy called the “paradoxical truth” that lower tax rates can mean higher tax revenues. When people are taxed less, they tend to earn (or declare) more. It has taken Britain into a golden era of milking the rich.
The article goes on to contrast how Hollande's tax rises in France led to falls in the tax take.
Another point in the article is that the bottom 50% are paying a smaller share of income tax than ever before.
There is a lot of moaning that the 'nasty' tories only look out for the rich. But as well as inequality falling (at its fastest ever level) under this government, we now see that the tax burden has shifted off the poorer and onto the rich too.
This shift is a remarkable achievement given the terrible state of the economy and the constraints that the government has had to work within.