Rishi pays tax at 22% and NI.

[GPTec1]

This really, £5m in earnings, tax 1m, rate at 22% and no National insurance.

Not bad is it? yet all we get from the 'right is "the wealthy pay enough already"

Do they?

I bet all those on/or have been striking in NHS, education, rail would love an overall rate of 22%.

Should we all pay tax at 22% ? regardless of earnings?

He will be on paye for his role as the pm. And he will be paying tax and NI on his income like everyone else

A lot of you might hate me for this, but if it were up to me, I'd bring back the sky-high rates taxes from the 1970s for ANY high earners!😆

I am a socialist and firmly believe the rich should be forced to share their wealth and pay more in taxes to support the rest of us.

NOTHING will ever convince me otherwise!

Not on his capital gains though, which I think is the point.

Ironically Gordon Brown massively reduced capital gains tax, the Wally.

All of those things would be helped enormously with more tax take.

The UK at 20% has the lowest CGT rates of any European comparable country.

France and Germany 36% and 26% respectively.

I’ve heard the UK described as a country that wants European style public services on a U.S. type tax take.

Given that our taxes are relatively low, yet our investment and growth are on the floor, you’ve got to wonder why people think it encourages investment? It’s all a bit “ignore the evidence of your eyes and ears”.

Yep we have had one of Europes lowest corporation tax rates since 2016, yet growth and productivity is far lower than comparable European countries.

@GPTec1 maybe but just compare Europe to US

It’s just a mysterious riddle isn’t it!

The fact is, neoliberalism doesn’t work - and that’s the policy our Tory/New Labour government have been pursuing since the days of Thatcher.

I much prefer a model with a mix of capitalism and socialism - a mixed economy which values and protects the resources of our country and encourages private investment. You cannot have just the one (communism or neoliberalism) as they are both extremist and utopian nonsense.

Let’s have properly funded public services and protect our resources by unwinding privatisation of key infrastructure. And let’s celebrate business and innovation as well which comes with a decent infrastructure.

But to pretend that you can run a country on a shoe string and hope that private investment does all the heavy lifting is fantasy.

@GPTec1 "a nurse is paying 33% on earnings of 33k"

Absolute garbage. Do you want some facts?

A salary of 33k for 21/22 (with no pension) attracted tax of £4086 and NI of £2812. That equals 21% in total.

If said nurse was in the NHS pension scheme paying 9.3% into the scheme, then taxable earnings reduce to £29931 attracting tax of £3472 and NI of £2812. That's equivalent to 19% in total.

If said nurse also has student loans to repay and you class this as tax, then this would add £1179/year for plan1 or £513/year for plan2. Adding these in for the nurse paying into a pension results in total equivalent tax rates of 22.6% (plan1) or 20.6% (plan2).

Ok but when you get to those kind of sums, charging the same % doesn’t make much sense.

Rishi already contributes many, many times the amount of money he and his family will cost the Government so personally subsidises many thousands of others. If Rishi goes into a restaurant, should he have to pay several thousand times the menu price just because he has more money than the other diners?

But you realise that the really high earners will just leave then and, as they pay for so many others as well as themselves, that would actually lower the overall tax take?

this is why talking about individuals is silly.

He may well contribute more in terms of tax but he didn’t always and he may not in future.

But all that extra money he earned is at the expense of other people earnings. And it’s passive earnings. He didn’t do it when contributing to the economy or country (PM salary aside).

Prove it.

GPTec1
Yep we have had one of Europe's lowest corporation tax rates since 2016, yet growth and productivity is far lower than comparable European countries

Germany's GDP growth here;

https://www.statista.com/statistics/375203/gross-domestic-product-gdp-growth-rate-in-germany/

https://www.politico.com/news/magazine/2021/11/02/hard-tax-rich-518383

I have no skin in the game here (I’m not leaving and also am nowhere near Rishi’s wealth status 😂) but it makes sense, which is why you have places like the floating ship The World.

Germany's GDP growth here - the website seems to have problems, try this one;
https://www.ceicdata.com/en/germany/gross-domestic-product-annual-growth-rate/de-gdp-growth

Well said

I do not think it's tax on earned income. Due to the rate I'd say he is paying capital gains tax (so above calculations are incorrect).

There are things that make sense but aren’t actually correct.

You could increase tax - and if that tax is put to good use - you will not see a huge flight of useful capital.

Those who have useless capital - and by that I mean the likes of Rishi Sunak - will move their money around in the most tax efficient way possible.

The Laffer curve - which is what a lot of anti “Tax the Rich” supporters rely on - hasn’t been proven. The very very extreme ends would never happen in reality, and because economics is about human beings and reality, we need to think about it in those terms.

GPTec1
Either way, it was a decision Cameron took on the position of DPP

^The Labour Party’s attempt to blame the Conservatives for Sir Keir Starmer’s gold-plated pension arrangements backfired on Wednesday night...*
...annual reports from the Crown Prosecution Service (CPS) after Sir Keir’s appointment in 2008 show that while the pension deal was not finalised until 2012, it was conceived under Gordon Brown’s government. The CPS’s annual report from 2008-9 says that “pension arrangements are currently being established” that would “provide pension benefits broadly in line with the Judicial Pension Scheme”.
https://www.telegraph.co.uk/politics/2023/03/22/labours-attempt-blame-tories-starmers-pension-tax-deal-backfires/

The French had a very punitive tax on the wealthy until it was scrapped in 2017. Figures from their equivalent of the Inland Revenue showed that over the preceding 15 years, more than 10,000 French citizens left France taking 35 billion euros in tax receipts with them.

And how’s France doing as a country…

I couldn’t care less how rich or poor he is. I care how he does the job.

I am a socialist and firmly believe the rich should be forced to share their wealth and pay more in taxes to support the rest of us

Too simplistic though. Should a rich entrepreneur who has spend many stressful hours working and building up their business have to ‘share their wealth’ and ‘support’ someone who‘s never worked because they can’t be bothered, for example?

And how’s France doing as a country…

Not having a good day;
*France strikes: police station and courthouse attacked in pension protest^

https://www.thetimes.co.uk/article/france-strike-pension-reform-macron-protests-march-2023-8nk967fxz