Toynbee’s at it again, advocating taxes on the ‘rich’. Mandelson’s swinging Labour away from such controversy pre-election, aware that there are middle class votes to be lost with such policies.
This is what Toynbee writes –
“Mandelson is profoundly wrong and out of date to accuse others of “class war”. The 50p tax rate and tax on bonuses are not some “core-vote” strategy. Polls and focus groups prove them so popular that the Tories dare not vote against them. Mandelson’s claim that taxing the rich makes Labour no longer the party of “aspiration” is to grossly misunderstand the present mood. The decade-long deception that pretended mega-wealth could be “aspired” to by all is over: the real middle Britain, median earners on about £23,000, are not core-vote but the majority – and they have rumbled the rich.
Their aspirations have nothing to do with letting Rothschild and Deripaska incomes rip. Remember only 10% earn over £40,000. To have any hope of salvaging this election, Labour has to know whom as well as what it stands for. That’s not class war, that’s basic social democratic principle, and it’s good psephology. “The many not the few” is no retreat to a core vote.”
This is my reply –
The genuinely rich have by definition more money than they need. They can therefore send their money offshore. If you are rich paying tax is mostly voluntary.
Wealth creation is also voluntary. In the sense that it involves taking risks, which can be passed up, or taken up. If people want jobs they either have to create their own businesses, or find people to take risks on their behalf and employ them. Why would someone take a risk with their money and their time, which could all be lost, if they cannot keep more than half of what they earn, if they succeed?
50% Income tax plus employers and employees N.Ins is about 73% total tax. Tell that to any foreigner and they are shocked. 40% should be the maximum tax take all in, or people won’t bother making money and building businesses.
Speculation is taxed far lower. At 18% Capital Gains Tax still makes it worth making gains that way. Outright gambling or betting is tax free.
But for God’s sake don’t be so stupid as to make money by actually working for a living. That really seems to offend socialists.
They seem to cope OK with people rich enough to avoid work. In fact they quite admire them, or gamblers who’ve won big on the lottery. What offends them is seeing someone a bit like themselves who’s managed to make more progress than they have through honest work, coming from the same start point. They generally assume that the other person must have cheated in some way to get ahead, as a way to avoid the feelings of inferiority and unfairness that otherwise would seethe inside their souls. The one thing they are unwilling to contemplate, is their own lack of enterprise.
And then there’s IHT.
If an successful risk-taker keeps the measly 25% the government leaves them from their income, and contemplate leaving something to their kids, then that gift will be taxed at 40% all over again. You have exactly 15% left from what was originally earned. Why bother?
Better to emigrate to a country where enterprise is valued and rewarded. Or live on less.
It’s all just jealousy that makes people want the supposed rich heavily taxed. It will, though, impoverish the whole of society if such prejudice against the productive and the creative and the enterprising is allowed to inform rates of tax.
As I say, the rich don’t pay the taxes anyway. Only people who are on the rise have to pay the taxes, often people who are heavily borrowed, who are working every hour God sends, and who are creating jobs. These are the people the socialists want to punish.
People should not be jealous of such commitment, and demand it be taxed and stopped, but helped and encouraged. They should imagine one day their children might succeed in business,or their grand children, and not not try to stop others from getting on. A young person’s best years of health, and the knowledge they have absorbed might only enable them to last in such effort for ten or twenty years. Why crush such effort with taxes, when the whole of society benefits so greatly from it?
This is Britain’s biggest failing.
We would do better to become communists. At least in Russia and China people are able to build businesses without too much government interference (the corrupt pay-offs are bad, but then the entrepreneurs are heavily supported in return), and they understand that their countries need a strong industrial and commercial sector.
In Britain we hide money away in The City, and keep it out of sight, where the government can get their hands on it from their banking friends, who get huge bonuses for keeping quiet about the ridiculous risks we are all being placed under.
Why do we have to live in a casino, for god’s sake?
We have enough native cunning in Britain to succeed at whatever we choose. We just need to hurl all these Polly Toynbees over a cliff and we’d be back at the top once more in no time. Allow the people who lead and build to be rewarded, or let’s go direct to the gutter where the Labour Party wants us all to be, dependent on their handouts, unwilling and unable to do anything for ourselves.