Monday, 2 March 2009

Hitting on the rich.

Brendan Barber visits a rich man.

(Picture forty-percented from here)

The TUC say that rich people are costing the taxman four billion a year in lost revenue. Apparently they object to handing over forty percent and so keep their money in countries that charge fifteen percent or less.

The nerve! How dare they try to hold on to their own money! Don't they know how many cans of Stella that would buy, how many plasma TV's, how many Xboxes? We have children in 'poverty' who have never played the latest versions of Deathmatch Golf or Roadkill Challenge. Such deprivation!

Hold on a minute. The TUC are discussing tax policy? What are we paying that Chancellor bloke for? How much is he getting just to balance caterpillars over his eyes? He doesn't seem to be doing much else.

Well, it seems it's down to the TUC. They have The Answer:

TUC General Secretary Brendan Barber said: "The mechanisms of tax avoidance are always hard to understand, but this is a very simple story. If the super-rich held their money and assets in the UK they would contribute at least £4 billion extra.

Ah, point of order there, Barber boy. Nobody 'contributes' tax. It's taken from us and if we don't pay, we go to jail. 'Contribution' is where you think something's a good idea and give some money towards it. Tax is better described as 'stand and deliver'.

Yes, if the super-rich kept their money here they would pay an extra £4 billion in tax. That's why they don't do it. It's not complicated at all.

"This would be enough for the Government to meet its target to halve child poverty by 2010. It would also mean that instead of being squirreled away in tax havens, it was being spent in the real economy here helping us fight recession.

Oh, here goes the child poverty crap. None of it goes to the cheeeldren and the Barber knows it. It goes to politicians and union leaders so they can have chaffeur-driven Rollers with blacked-out windows so the street urchins don't offend their eyes. No visible homeless, problem solved as far as these people are concerned.

It's really really simple. If you earn a lot of cash and you keep it here, the Government will take forty percent of it. If you keep it somewhere else, that somewhere else will only take fifteen percent of it. If our government only took fifteen percent of it, not only would it all stay here, but rich people from higher-tax countries would put theirs here too. Has it never occurred to these people to wonder why tax havens look so wealthy when they charge such low tax rates?

"With the tax take falling because of the recession, there can be no better time to get tough with the super-rich, so many of whom did so much to throw the world into recession."

Brilliant. Let's penalise and threaten people who could afford, at the drop of a hat, to leave the country entirely and reduce their tax liability here to zero. Let's blame them all for the recession, even those who have never been involved in finance or banking, because the Gorgon had nothing to do with it, as he keeps telling us all. All rich people caused the recession, including those who have lost fortunes and including those who have committed suicide because of it. Oh, they really wanted it to happen, didn't they?

Rich people pay vast amounts of tax and that's why they hide a lot of it abroad. Legally. Stop them doing that and their most sensible option is to move abroad and take the money with them. No rich people from anywhere else would put their money into a high-tax country. You don't get that rich by being stupid.

So putting up taxes mean the rich bugger off and nobody wants to invest here. Oh, and when a rich guy leaves, what do you think happens to all those who work for him? They can't leave. They aren't rich and they are now unemployed. I'm not talking about butlers and maids. I'm talking about factories and their supply chains. All folded and liquidated and the cash gone.

I'm no economic expert. I have no training and no understanding of deep economic theory but surely it must be face-slappingly obvious even to a TUC official.

You have the option to pay 40% of your income or pay 15% of it. That would save you 25% of your income. A lot. It's worth paying an accountant to help out with that. You want to stop them doing it? Make it not worth their while. Reduce the tax to 15% and no tax will go offshore. Further, taxable assets and cash will flood into the country from more expensive administrations as their rich people do what our rich people have been doing. That's tax on another country's rich people. We don't have to do a thing.

It seems obvious to me that if we attract other countries' cash and tax it, as well as making it not worthwhile for our rich people to run offshore accounts, our total tax take will be far better than if we harass our own rich until they leave.

The TUC don't see it that way. The Gorgon doesn't see it that way. Caterpillar-balancer doesn't see it that way.

So where's the flaw? There must be one. I can't possibly be right, while the Great Ones are wrong.

Can someone explain?


subrosa said...

Make total sense to me but then I'm just one of the poor sods who's forced to pay tax on my wee pensions.

Mitch said...

One of the lefts more obvious "blind spots".

an ex-apprentice said...

No no no, Mr Legover, you just haven't grasped the basics of socialist economics, have you?

It's really very simple. Stop thinking of it as YOUR money. That's where you're going wrong. It actually ALL belongs to Gordon, he just allows you, out of the goodness of his heart, to have a small portion.

Because it's the right thing to do. For small working families and hard businesses.

Anonymous said...

"Child poverty" will never be dealt with as long as we encourage the feckless to breed.

North Northwester said...

"If the super-rich held their money and assets in the UK they would contribute at least £4 billion extra."

Egregious stupidity, this.

Even if true, four billion is a drop in the ocean.

Taxing 'the rich's' INCOME would bring in peanuts because what they contribute to the economy elsewhere is as follows:

#the tax revenue to the Treasury and to local government that the employees of the rich's business pay, and they also stay of the dole as a result,

#the goods and services supplied to productive industry that the rich's businesses provide,

#the tax revenue to the Treasury and to local government that taxing the rich's businesses provide,

# the goods and services bought by the rich's employees are bought from other British businesses - which pay tax revenue to the Treasury and to local government and stay off the dole.

#VAT on every purchase involved at the end of the productive process.

#the pleasure that lots of people get from enjoying the goods or services that the rich got rich selling.
Remember pleasure, Mister Trade Unionist - the sort that most ordinary people have a little of in their lives.

Incidentally, for most of us common folk pleasure usually involves the presence of actual other human beings, but that's just us, right?,

Utter, utter bog lobsters.

Anonymous said...

Churchill had it right-"Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery."

Man with Many Chins said...

This reminds me of the whole excise duty on tobacco issue. HMRC bleat that they are loosing money due to "black" market tobacco imports.
It should be fairly obvious to the greedy cunts that if tax was set at a similar level to perhaps belgium or spain, then the tobacco smuggling would no longer be viable and net tax incomes would either not change, or in fact increase. Or, shock horror, make our excise less than other european countries, then they can bootleg tobacco from here increasing revenue more!.
But of course the famous fake charity ASH would not like that and would get very shrill.

Anonymous said...

The idea that anything can COST the taxman is absurd. The taxman costs US a fortune.

Anonymous said...

The sight of large corporations offshoring their British earned profits is nauseating and should be stopped, the EU has grown tired of this and is clamping down, I expect we will drag our heels, incidentally the CIA describes the city as the worlds cheif money laundering centre, one bonus of any clampdown would be job losses in the massed ranks of the tax lawyers and their associates

max the impaler said...

Anon@11:27 'the EU has grown tired of this and is clamping down' can you possibly delude yourself to this extent?The last leaked report from the EU makes Al Capone's tax evasion look like petty cash fraud.And I'm not even going to mention our own parasitic governments activities.You must be beyond stupid or just paid to defend the indefencible.

Anonymous said...

Could we also have an index of how many "Waldorf" stays, that £4 billion would pay for?

How much extra would dear Alistair rake in if MP's "expenses" were taxed?

Bishop Brennan said...

Errr, actually it's simple.

Or, rather, the brothers are simple.

I think that nice Mr Draper would call them 'windowlickers' or some such noun.

I'm enjoying 'Atlas Shrugged' at the moment. The parallels with this kind of thinking would be funny if they weren't so damaging and dangerous...

I think Atlas has not only shrugged, but thought, 'Why bother?' and taken a gun to himself... :-(

Gordon said...

Is this the same 15% tax rate that the EU is trying to introduce for MEPs and associated beaurocrats to make things "fair?" Cunting wankbags the lot of them

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