Millionairres Who Pay 10% Tax

Discussion in 'Current Affairs, News and Analysis' started by Sven, Jun 20, 2007.

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  1. Menzies Campbell asked a question today in PMQs that highlighted the fact that millionaire managers pay less tax than their cleaners.

    Here is a BBC article debating the issues

  2. I think that the majority of Private Equity principals would agree that paying such a reduced rate of tax on their carry is inequitable, however:

    The reduced rate ( through taper relief) is there to encourage entrepreneurship which, it can be argued, it does:

    You can't blame the individuals concerned for minimising their tax (after all do you ever pay more than you have to?)

    Doubtless the rules will be changed in due course.

  3. Under a Labour Government, too.


    What is the world coming to?

  4. Only problem is, how many of these 'entrepreneurs' are making donations to the two main parties? If there is a change it will be slow enough to give these 'oligarchs' (spelling(?)), time to move their money away from any new form of extra tax, an only pay a nominal amount extra too look if they are conforming fully to the new system.
    With the two/three main parties I can only see the rich getting richer and poor at best possibly staying where they are. Our political system is now so corrupt that you and I will have no bearing on the direction or implementation on any significant changes in policy, (basically we don’t have the cash to persuade them otherwise).
  5. You didn't mention what idiot was responsible for this Sven.
  6. Ahem:-

    Ming's Parliamentary salary = £60277
    Tax on Ming's Parliamentary salary = £15524.58

    Ming's Parliamentary 'expenses' = £123617
    Tax on Ming's Parliamentary expenses = £0

    Ming's total tax bill = £15524.58
    Ming's total Parliamentary income = £178669

    Ming's tax rate = 15524.58 / 178669 = 8.7%

    Nuf said?
  7. The catch here is, these guys are paying fcuk all tax, there employees are. if they buggered off to say switzerland, they'd be paying fcuk all tax, there employees wouldn't be in the british tax system so would be paying bugger all tax into the pot either...

    What do you want?
  8. Disgraceful, people trying to abuse the tax regulations to exempt them because they think they are special!
  9. Even Slim Will pays tax on his umble pension.
    Flat rate tax for all.
    Last time I saw a written version it was first £12 K zero tax then EVERTHING above, at 22% and no, nil, zero, zilch exemptions for anything.
  10. Maybe my maths are not what they were, but 10% of a huge amount is a great deal more than PAYE and NI rates on £6ph

    So the "pay less tax" argument is total bollocks...

    This is not to say I agree with the way that Private Equity partners are playing the rules, but Gordon Brown made those rules...
  11. This fine for employees, but gross income (turnover) tax is not a "fair" tax for the (genuinely) self-employed or running a business - these have to be taxed on a nett (profits) basis

    Maybe all businesses (whether incorporated or not, so including partnerships) should be taxed via corporation tax?

    The biggest problem with the UK tax system is that it is just sooooooooo complicated; simplification is essential although I am not sure a flat rate is the solution.
  12. Even 'Saint' Bono while bleating for all to do more with their money for Africa etc is at the same game as the rest of them.Web Page Name
  13. Its not pay less tax, its pay less percentage. At the end of the day, 10% of their pay is far more than the 33% (approx) that we pay per annum!

    Its no real wonder that we are a nation of slackers and social grabbers when successful people are penalised at every turn, penalised for a governments failings! Surely MP's should have performance based tax, the worse they do, the more tax they pay, TB would be skint!
  14. OldSnowy

    OldSnowy LE Moderator Book Reviewer

    People pay the tax that they have to, under the rules, and G Brown makes the rules.

    Catch up with a few back copies of Private Eye, which has raised this issue time and again (including in the latest issue). The facts are simple - Gordon Brown has stated, many times over many years, that he was going to deal with billionaires who, while appearing to live in the UK, were domiciled for tax purposes overseas. He has refused to do so, because it would affect his party coffers.

    A simple case of Socialist hypocrisy, dissimilation, and lies. Nothing new for this government, and something that we have all come to expect I'm afraid.
  15. Correct! Nobody is rushing into the Local Inland revenue saying "Look I've go a bit of surplus cash hanging around, please take this".

    When you start talking taxation to people its absolutely amazing how few people know about it.

    The link does not provide light reading! However reading some of the stuff available when you have a sleeples night provides some interesting facts including Gobmint Reveneue and where it comes from.