£45k is 150% median income - but they're in the same tax bracket as £99,999, obviously there's a huge difference between the 2 amounts. The snp manifesto claimed that replicating the scottish system would generate £16.5 Bn a year by 2028; The Scottish system has circa £30k as the point where higher tax kicks in, with £45k paying £450 a year more income tax, £250k would pay £9k more - Sadly the right wing media have convinced working class that lower tax for the millionaires is good for society, despite public services being on their knees
Two minutes in, and the one thing I'm struck by is: John is a member of the party currently in government. Surely the way he is framing this discourse is undercutting his own goverment a couple of weeks before they deliver their first budget.
A pensioner pays 20% of their income to the Taxman. Why not everyone else except the poorer sectors of our society. It seems Tax avoidance is everywhere in the UK today except the pensioners and those on PAYE.
@@tomnorton7817 only because first past the post doesn't represent the public view and there's a hostile media. Labour got more votes in both elections under corbyn.
Might as well not have inheritance tax because that is the one tax that is so easily avoided through trusts and tax havens and let’s face it this avoidance has been going on for centuries and has caused the great divide in wealth in the UK. Let’s face inheritance tax avoidance has been going on for centuries via Trusts which has enabled the great divide here in the UK, so either close the tax loopholes or ditch it. The other great tax avoidance is living abroad as a British citizen and hiding one’s wealth. This would not be allowed in the USA.
Does people with broad shoulder means, people who are MPs for decades with gold plated pension give up everything more than 500k in their pension? Somehow do.not.think so. Hipocrite?
Inheritance tax…..Either ditch it or fix it because there are loopholes that has existed for centuries that has enabled the upper class to prevent them paying it. This has caused the great divide in wealth in the UK.
Hi John, As you may be aware, the USA has committed to $66 billion Bipartisan Bill for the upgrade of the rail infrastructure, including a new line between Chicago and Seattle. The UK needs to do the same and invest in the transport infrastructure. In addition, the UK needs to invest in the NHS to match the levels in Germany and France.
The only behaviour change problem related to raising the highest rates of income tax is that people shift their earnings to dividends and capital gains. If you harmonise the rates of these taxes to income tax plus national insurance you take away most of that behaviour change.
@@martineyles except you remove the risk takers. If you have run or worked in a small business you will know the hours and commitment owners put in to grow and survive often taking minimum pay to drive this forward. If you are employee you take non of these risks. They ether don’t take the risk or they go somewhere who will allow them to get rewarded
@@zenbaby3396 If business owners take minimum pay, they won't pay much tax, so there's no disincentive. If their business is successful enough to push them into a higher marginal tax band, they would be earning enough even after tax that there is no disincentive either.
@@martineyles your not accounting for creating value in their business most entrepreneurs are looking to create value to capitalise ether for their retirement or increasingly now to turn. Think how many hi tech firms get sold once they reach a certain capital value, because running a bigger firm takes them away from what they are best at. These are exactly the companies we need and also they are the least tied to a country or location.
@@zenbaby3396 Harmonising the tax rates would still leave these profitable for sale and generate plenty of pension funds, and that would apply even with a 50% tax band.
Why don’t they just focus on collecting the taxes that should be being generated by big business, dismantle avoidance schemes, claw back from corrupt government contractors, then we wouldn’t need to place a further, unsustainable burden on those who are already so close to the edge.
Private firms avoid tax by hiring the best tax dodging accountants at the top wages. If government did the same they might get some decent tax people to close the loopholes. That's why I wonder if people should really be complaining about high ups in government being paid big salaries. If they're worth it they could save the government many times what they cost. I don't really know enough about the situation though.
The problem with land tax is that it would by the London elite specified as based on area, if you want a real proprty #/land tax it needs to based on value . That unfortunately would hit SE dwellers , to put hat in perspective a £20M mansion is SW1 gets a tax of £1k , in a rural area of wales like Pembrokshireyou pay 3k+ for a 3 bed property
It should scale up for unused land, large amounts of untouched land not being used for anything. Empty green fields owned by foreign companies and offshore trusts.
We really do need to understand the purpose of taxation and it's not just to pay for government spending; this is just one and probably the least important. 1. it is to balance the difference between the most wealthy and the least wealthy. 2. It is to change the behaviour of the population, tax bad behaviour and not tax good behaviour. (all those good people switching to ev transportation now being considered for per mile taxation, stupid.) 3. Controlling inflation. Had the last government done this effectively inflation would not have gone up to 10%. They didn't, they left it to the bank of england, and who controls this? the government. 4. Taxation ensures the pound has value. The fact that the government will only accept pounds as payment gives it value. There 2 other reasons but Richard J Murphy states it much better than I do. It's pity the interviewers and the interviewees, and in particular Rachel Reeves doesn't understand the basics.
Hi, I think you missed a key point is do you trust the government to use your tax money wisely and not just waste it on sound bite polices and giving it away to who ever has a the ear of the ministers.
@@lkyuvsad The NHS does need reform, its wildly inefficient, focuses more on centralised emergency care rather than local preventative care and has huge complex layers of management which ends up wasting huge amounts of money. Also the government needs to move people over to private healthcare or co payments otherwise ageing demographics will keep grinding it down to a halt. Australia did this years ago and is within top 5 for all major healthcare categories.
@@Pirake123 I don't disagree that the NHS is over-managed. It's going to need more state money whatever else happens if we want it to work, and we want it to be free or at least very affordable. The original post was questioning the government's ability to make good use of taxes (not that that's strictly speaking where government budgets come from). My point is- the NHS was one of the most efficient health services in the world, so evidently you can "trust the government" to deliver services like that sometimes. With recognition that an ageing population means the NHS needs to be updated for that new reality. I'm as critical as anyone about this government and the last, but this idea that's suddenly become popular that governments can never deliver effective services so we should give up and move to lower-tax, smaller state is arguing against a history filled with counter-examples.
@@lkyuvsad The NHS will absolutely never be as good as it was without some miracle technology/political transformation. With all the forecasts for ageing demographics and less people working the fiscal burden will keep going up. The UK now spends more on the NHS now in terms of % of GDP than it ever has apart from during COVID. Even if you start plowing in more money, there is no guarantee that you will see enough growth to be able to pay for it (and when I say pay I mean with enough fiscal responsibility not to crash UK gilts). IMO the only thing that could save the NHS is growing the economy, investing in energy, if possible implement better trade deals with the EU (rejoining even). Otherwise you will get in a doom loop of having to increase tax more to fund the ever increasing costs, then young skilled workers will leave so then you need to increase taxes more and it becomes a vicious cycle.
Steph doesn't seem to get that all these poor small to medium businesses won't be paying ANY capital gains tax on their routine business profits (that is corporation tax which is low anyway). Capital gains tax is paid when those business SELL their ASSETS, such as if they try and sell their business. Perfectly fair to treat that capital appreciation as income in that period and tax accordingly
McDonald is talking rubbish... When the government wanted to tax me at 62% I stopped working an 80 hrs week. I became a financial socialist and now work a few hrs to make sure I pay 20% tax too. So the government lost over £50k in tax as a result... Laffer curve is real and socialist don't live in reality. Government needs to shrink not grow, it's 47% of GDP it needs to go back to 35% Max. If it cut it's waste and spending on nonsense they'd have more than enough money for public services because they're so badly run and the least productivity in all sectors
Then you're also in a position where you don't need the money. Most people aren't. I completely understand the issue with the 62% tax - I disagree with it twice over. I have much less of an issue with the 42% band.
@@mapmuncher5587 entrepreneurs build businesses, that generate wealth and therefore Taxes. Where we now are, is that won't happen, so wealth isn't generated, and the Taxes run out, next year the government will receive the full force of their thinking as tax collection falls and the spiral downwards continues and debts rise
@@mapmuncher5587 I'm not going to feed a wasteful incompetent and greedy government, if we are equal under socialist think, let everyone pay for the services. 55% of the population Take more from the tax payer than they contribute, that should be addressed
If you actually listen to the podcast Peston points out those on average incomes are paying historically low levels of tax, and the record high level of taxation is being shouldered by businesses and higher earners. If the same group keeps being taxed more and more eventually they're going to piss off and live somewhere else.
Thank god we did not have this man in charge. This idea that it’s not entrepreneurs who make worth but working people is so deluded it’s difficult to know what to say. He clearly has not seen how A1 and mechanisation as shown that it is idea makers who make value not “workers”. He is living in some prewar Trouble at Mill fantasy.
Workers are idea makers. Ideas don't all come from the top. Machines need highly skilled workers to design, oversee the building of, program, control and maintain them too.
@@martineyles I think in many ways the problem is that this labour based them and us just does not work in the modern age in a sense you are right team work is what is driving all business but particularly small business. You look at the rubbish they spout about working from home being best for workers and employers as if employers are sitting there thinking how can we make are work place less efficient by forcing works back to the office etc. They are still thinking in terms of large heavy industries which they and other governments have destroyed. Focus regulation on what is really needed to get growth not this basket of more regulation.
@@zenbaby3396 If your pension owns the office that your business rents, you have an incentive to have your business continue to rent that office and therefore an incentive to have you employees work in the office at least some of the time. I knew business owners with this arrangement, because it's a very tax efficient way of building up your pension pot.
@@martineyles let’s us go with this argument and as a Surveyors’s it is an interesting point. First let’s just take the crude analogy you present you assume that some how your employers problems are not yours and you should not have to modify your own behaviour, this driven by an old fashioned and dangerous myth of them and us this is the failed model for any but the most large scale companies. However just as an intellectual exercise let’s look at this closer while there are fixed costs associated with office occupation and it’s difficult to get out of many leases easily if working from home was more productive there would be no logical reason to force people into work it is the work you do and not the occupation of the offices which generates values and pays for the offices until you can get rid of them. I have advised a number of companies who have down sized their space when needed.
@@martineyles sorry getting late see I did not actually answer your specific scenario which is common in small business and you are quite right a reasonable common process. This is were life gets somewhat interesting and were this sort of legislation can really harm small businesses I assume you belief tough on the poor sod who is trying to save for his pension and non of your problem, possible, of course assuming he has made it a limited company, as I would have advised, his way out is to fold the company and release himself from the liability and let to another business who needs the space so everyone losses hey ho.
This man is crazy, you can't just keep handing out benefits and taxing the middle class+ to pay for it, its broadly inflationary. You need to focus on increasing the productivity of your businesses, manufacturing and services. The best way you can reduce poverty is by investing in energy and lowering energy prices which will help businesses create more jobs, not by handing out more money.
Certainly changed our behaviour. As soon as it was clear Sunak wouldn't win last year we left the UK. Regulation was the #1.reason (we.were spending more time form filling than sales devt), tax #2,.and bonkers/divisive culture #3. Super happy these days and wish UK well
Problem is that Starmer and reeves are taking their orders from somebody else the budget will be a cash grab from the working class the rich will get off Scott free as usual
Broadest shoulders is nonsense.... Someone earning £35,000 pay only £5,000 Tax. Someone earning £1 million pays £400,000 Tax, it would take the first person 80 years to pay the same Tax as the millionaire has paid in the one year... CGT is a tax paid on money you've already paid tax on because you've saved and invested it.... The old Fool
@@danh4859 but they work alot harder... I know people that do 80-100 hrs a week, they take all the risks of financial bankruptcy, often pay employees before themselves, and could lose everything, yet others just turn up for work and do as little as possible.... For the most money they can get
The UK budget is not like a household credit card. We're one of the world's richest economies so the bank of England can give the government all the money it needs. The risk is inflation. The solution is borrowing to invest. Build a wind farm with 1BN and pay it off in ten years, in that decade you save 10BN. So it's a worthwhile thing to do.
What level of salary do they judge the broadest shoulders to have….NO ONE ever says.
£45k is 150% median income - but they're in the same tax bracket as £99,999, obviously there's a huge difference between the 2 amounts. The snp manifesto claimed that replicating the scottish system would generate £16.5 Bn a year by 2028; The Scottish system has circa £30k as the point where higher tax kicks in, with £45k paying £450 a year more income tax, £250k would pay £9k more - Sadly the right wing media have convinced working class that lower tax for the millionaires is good for society, despite public services being on their knees
Two minutes in, and the one thing I'm struck by is: John is a member of the party currently in government. Surely the way he is framing this discourse is undercutting his own goverment a couple of weeks before they deliver their first budget.
Easy to distant himself when this shower is over . 😂
Starmer withdrew the whip in July because he voted to scrap the poverty-catalysing two-child benefit cap.
Carbon Tax, Wealth Tax and a Land Value Tax is what I would like you see in the forthcoming Budget!
A pensioner pays 20% of their income to the Taxman.
Why not everyone else except the poorer sectors of our society.
It seems Tax avoidance is everywhere in the UK today except the pensioners and those on PAYE.
The pension demographic actually have the lowest relative poverty rate
Why talk to this failed politician on investment?
more people voted for his labour party than starmers
@@SamUploads420 they were polarising and also resoundingly lost
@@tomnorton7817 only because first past the post doesn't represent the public view and there's a hostile media. Labour got more votes in both elections under corbyn.
@@SamUploads420 media hasn't changed much in that time. They gave up many more votes than they brought in for themselves. A loss is a loss
And significantly more people voted Conservative to keep these loons out.@@SamUploads420
Might as well not have inheritance tax because that is the one tax that is so easily avoided through trusts and tax havens and let’s face it this avoidance has been going on for centuries and has caused the great divide in wealth in the UK.
Let’s face inheritance tax avoidance has been going on for centuries via Trusts which has enabled the great divide here in the UK, so either close the tax loopholes or ditch it.
The other great tax avoidance is living abroad as a British citizen and hiding one’s wealth. This would not be allowed in the USA.
Does people with broad shoulder means, people who are MPs for decades with gold plated pension give up everything more than 500k in their pension? Somehow do.not.think so. Hipocrite?
Inheritance tax…..Either ditch it or fix it because there are loopholes that has existed for centuries that has enabled the upper class to prevent them paying it.
This has caused the great divide in wealth in the UK.
Hi John, As you may be aware, the USA has committed to $66 billion Bipartisan Bill for the upgrade of the rail infrastructure, including a new line between Chicago and Seattle.
The UK needs to do the same and invest in the transport infrastructure. In addition, the UK needs to invest in the NHS to match the levels in Germany and France.
Rejected about as bad as you can be rejected.
Can you please set these to be podcasts? Means they show up in TH-cam Music and much easier to listen to
An impressive politician,thoughtful and principled yet realistic
And very rich himself in the process, nice job.
The only behaviour change problem related to raising the highest rates of income tax is that people shift their earnings to dividends and capital gains. If you harmonise the rates of these taxes to income tax plus national insurance you take away most of that behaviour change.
@@martineyles except you remove the risk takers. If you have run or worked in a small business you will know the hours and commitment owners put in to grow and survive often taking minimum pay to drive this forward. If you are employee you take non of these risks. They ether don’t take the risk or they go somewhere who will allow them to get rewarded
@@zenbaby3396 If business owners take minimum pay, they won't pay much tax, so there's no disincentive. If their business is successful enough to push them into a higher marginal tax band, they would be earning enough even after tax that there is no disincentive either.
@@martineyles your not accounting for creating value in their business most entrepreneurs are looking to create value to capitalise ether for their retirement or increasingly now to turn. Think how many hi tech firms get sold once they reach a certain capital value, because running a bigger firm takes them away from what they are best at. These are exactly the companies we need and also they are the least tied to a country or location.
@@zenbaby3396 Harmonising the tax rates would still leave these profitable for sale and generate plenty of pension funds, and that would apply even with a 50% tax band.
Dividends and cap gains are paid out of money that has already been taxed!
Great man, extraordinary knowledge on economics with intelligent and informed economic and social ideas.
Why don’t they just focus on collecting the taxes that should be being generated by big business, dismantle avoidance schemes, claw back from corrupt government contractors, then we wouldn’t need to place a further, unsustainable burden on those who are already so close to the edge.
Private firms avoid tax by hiring the best tax dodging accountants at the top wages. If government did the same they might get some decent tax people to close the loopholes. That's why I wonder if people should really be complaining about high ups in government being paid big salaries. If they're worth it they could save the government many times what they cost. I don't really know enough about the situation though.
16,500 high net worth people have left the UK in the last 4 years and its just the start
Got so much time for John.
What an idiot nobody will have the incentive to work if there is a 50% income tax
The problem with land tax is that it would by the London elite specified as based on area, if you want a real proprty #/land tax it needs to based on value . That unfortunately would hit SE dwellers , to put hat in perspective a £20M mansion is SW1 gets a tax of £1k , in a rural area of wales like Pembrokshireyou pay 3k+ for a 3 bed property
It should scale up for unused land, large amounts of untouched land not being used for anything. Empty green fields owned by foreign companies and offshore trusts.
Beer, Petrol, Cigarettes. Labours favorites.
Benefits?
@@FreaksSpeaks nah! They use benefits to create a slave mentality.
We really do need to understand the purpose of taxation and it's not just to pay for government spending; this is just one and probably the least important. 1. it is to balance the difference between the most wealthy and the least wealthy. 2. It is to change the behaviour of the population, tax bad behaviour and not tax good behaviour. (all those good people switching to ev transportation now being considered for per mile taxation, stupid.) 3. Controlling inflation. Had the last government done this effectively inflation would not have gone up to 10%. They didn't, they left it to the bank of england, and who controls this? the government. 4. Taxation ensures the pound has value. The fact that the government will only accept pounds as payment gives it value. There 2 other reasons but Richard J Murphy states it much better than I do. It's pity the interviewers and the interviewees, and in particular Rachel Reeves doesn't understand the basics.
To go forward it needs the removal of Starmer,Reeves,the idiotic Lammy and the unctuous Streeting or the Labour Party is finished
What wage / assets is classed as wealthy
Wage isn’t wealth, assets 2m +
I have been in business for 40 years and I would never invest in the UK just to have these clowns tax all the profits
Hi, I think you missed a key point is do you trust the government to use your tax money wisely and not just waste it on sound bite polices and giving it away to who ever has a the ear of the ministers.
Mate. The NHS has seen per-capita real terms spend go down every year for over a decade. Let's worry about waste when we've mended the roof.
@@lkyuvsad The NHS does need reform, its wildly inefficient, focuses more on centralised emergency care rather than local preventative care and has huge complex layers of management which ends up wasting huge amounts of money. Also the government needs to move people over to private healthcare or co payments otherwise ageing demographics will keep grinding it down to a halt. Australia did this years ago and is within top 5 for all major healthcare categories.
@@Pirake123 I don't disagree that the NHS is over-managed. It's going to need more state money whatever else happens if we want it to work, and we want it to be free or at least very affordable.
The original post was questioning the government's ability to make good use of taxes (not that that's strictly speaking where government budgets come from). My point is- the NHS was one of the most efficient health services in the world, so evidently you can "trust the government" to deliver services like that sometimes. With recognition that an ageing population means the NHS needs to be updated for that new reality.
I'm as critical as anyone about this government and the last, but this idea that's suddenly become popular that governments can never deliver effective services so we should give up and move to lower-tax, smaller state is arguing against a history filled with counter-examples.
@@lkyuvsad The NHS will absolutely never be as good as it was without some miracle technology/political transformation. With all the forecasts for ageing demographics and less people working the fiscal burden will keep going up. The UK now spends more on the NHS now in terms of % of GDP than it ever has apart from during COVID. Even if you start plowing in more money, there is no guarantee that you will see enough growth to be able to pay for it (and when I say pay I mean with enough fiscal responsibility not to crash UK gilts).
IMO the only thing that could save the NHS is growing the economy, investing in energy, if possible implement better trade deals with the EU (rejoining even). Otherwise you will get in a doom loop of having to increase tax more to fund the ever increasing costs, then young skilled workers will leave so then you need to increase taxes more and it becomes a vicious cycle.
Chop public sector jobs by 90% and you will notice things starts to work and we save sh ite load of money too. Wont happen.
That's daft
Steph doesn't seem to get that all these poor small to medium businesses won't be paying ANY capital gains tax on their routine business profits (that is corporation tax which is low anyway). Capital gains tax is paid when those business SELL their ASSETS, such as if they try and sell their business. Perfectly fair to treat that capital appreciation as income in that period and tax accordingly
Labour a joke wondered where Steph went after ch 4 ditched her programme
McDonald is talking rubbish...
When the government wanted to tax me at 62% I stopped working an 80 hrs week. I became a financial socialist and now work a few hrs to make sure I pay 20% tax too. So the government lost over £50k in tax as a result...
Laffer curve is real and socialist don't live in reality.
Government needs to shrink not grow, it's 47% of GDP it needs to go back to 35% Max. If it cut it's waste and spending on nonsense they'd have more than enough money for public services because they're so badly run and the least productivity in all sectors
Then you're also in a position where you don't need the money. Most people aren't. I completely understand the issue with the 62% tax - I disagree with it twice over. I have much less of an issue with the 42% band.
Why were you deciating 10-12hrs every day to something purely for money? Did you have time to spend your earnings?
@@mapmuncher5587 entrepreneurs build businesses, that generate wealth and therefore Taxes.
Where we now are, is that won't happen, so wealth isn't generated, and the Taxes run out, next year the government will receive the full force of their thinking as tax collection falls and the spiral downwards continues and debts rise
@@mikedudley4062 so you were an entrepreneur?
@@mapmuncher5587 I'm not going to feed a wasteful incompetent and greedy government, if we are equal under socialist think, let everyone pay for the services.
55% of the population Take more from the tax payer than they contribute, that should be addressed
Tax those with the broadest shoulders! But they won’t will they. It will be everyone but. 💩
They themselves are rich, so no.
If you actually listen to the podcast Peston points out those on average incomes are paying historically low levels of tax, and the record high level of taxation is being shouldered by businesses and higher earners. If the same group keeps being taxed more and more eventually they're going to piss off and live somewhere else.
@@martin-gj8jk 😢😢
Thank god we did not have this man in charge. This idea that it’s not entrepreneurs who make worth but working people is so deluded it’s difficult to know what to say. He clearly has not seen how A1 and mechanisation as shown that it is idea makers who make value not “workers”. He is living in some prewar Trouble at Mill fantasy.
Workers are idea makers. Ideas don't all come from the top. Machines need highly skilled workers to design, oversee the building of, program, control and maintain them too.
@@martineyles I think in many ways the problem is that this labour based them and us just does not work in the modern age in a sense you are right team work is what is driving all business but particularly small business. You look at the rubbish they spout about working from home being best for workers and employers as if employers are sitting there thinking how can we make are work place less efficient by forcing works back to the office etc. They are still thinking in terms of large heavy industries which they and other governments have destroyed. Focus regulation on what is really needed to get growth not this basket of more regulation.
@@zenbaby3396 If your pension owns the office that your business rents, you have an incentive to have your business continue to rent that office and therefore an incentive to have you employees work in the office at least some of the time. I knew business owners with this arrangement, because it's a very tax efficient way of building up your pension pot.
@@martineyles let’s us go with this argument and as a Surveyors’s it is an interesting point. First let’s just take the crude analogy you present you assume that some how your employers problems are not yours and you should not have to modify your own behaviour, this driven by an old fashioned and dangerous myth of them and us this is the failed model for any but the most large scale companies. However just as an intellectual exercise let’s look at this closer while there are fixed costs associated with office occupation and it’s difficult to get out of many leases easily if working from home was more productive there would be no logical reason to force people into work it is the work you do and not the occupation of the offices which generates values and pays for the offices until you can get rid of them. I have advised a number of companies who have down sized their space when needed.
@@martineyles sorry getting late see I did not actually answer your specific scenario which is common in small business and you are quite right a reasonable common process. This is were life gets somewhat interesting and were this sort of legislation can really harm small businesses I assume you belief tough on the poor sod who is trying to save for his pension and non of your problem, possible, of course assuming he has made it a limited company, as I would have advised, his way out is to fold the company and release himself from the liability and let to another business who needs the space so everyone losses hey ho.
This man is crazy, you can't just keep handing out benefits and taxing the middle class+ to pay for it, its broadly inflationary. You need to focus on increasing the productivity of your businesses, manufacturing and services. The best way you can reduce poverty is by investing in energy and lowering energy prices which will help businesses create more jobs, not by handing out more money.
He said it with a straight face as well
He didn't say the middle classes. He was referring to the millionaire and billionaire class
UK citizens living abroad or ex doms are avoiding tax in the UK.
They should not be UK citizens.
Certainly changed our behaviour. As soon as it was clear Sunak wouldn't win last year we left the UK. Regulation was the #1.reason (we.were spending more time form filling than sales devt), tax #2,.and bonkers/divisive culture #3. Super happy these days and wish UK well
Good riddance. Doubt you were improving our economy.
So where did you go?
Problem is that Starmer and reeves are taking their orders from somebody else the budget will be a cash grab from the working class the rich will get off Scott free as usual
The worker creates the wealth... Nonsense. The employer creates the wealth, the worker helps them.
Broadest shoulders is nonsense....
Someone earning £35,000 pay only £5,000 Tax.
Someone earning £1 million pays £400,000 Tax, it would take the first person 80 years to pay the same Tax as the millionaire has paid in the one year...
CGT is a tax paid on money you've already paid tax on because you've saved and invested it....
The old Fool
They’re still left with £600,000 though… hard times.
@@danh4859 but they work alot harder...
I know people that do 80-100 hrs a week, they take all the risks of financial bankruptcy, often pay employees before themselves, and could lose everything, yet others just turn up for work and do as little as possible.... For the most money they can get
What they mean is no austerity now and leave the misery to our offspring. Borrow today let the kids pay back tomorrow. The Socialist way.
If you borrow money from your own bank which makes as much money for you as you like, you actually never have to pay it back.
The UK budget is not like a household credit card. We're one of the world's richest economies so the bank of England can give the government all the money it needs.
The risk is inflation.
The solution is borrowing to invest.
Build a wind farm with 1BN and pay it off in ten years, in that decade you save 10BN. So it's a worthwhile thing to do.
What awful hosts
?