Over the weekend, John McDonnell promised that Income Tax would not rise for most of the country but that a higher rate would be levied on those earning more than £80,000. Tax reform can be pretty technical; and so one needs to look at one or two things without losing sight of the idea that the richer should pay their share. Each tax payer has a personal allowance of £11,500 i.e. the first £11,500 of earnings is not taxed; this is clawed back if one’s income is £100,00 or more by levying a 60% marginal rate on those earning between £100,000 and £121,200. There is probably enough room for a new additional rate between the 40% levied at £42,000 and 60% levied at £100,000 and £80,000 p.a. is a lot of money; only 3% of income earners get that much. It will remain necessary to increase the amount paid by those earning more than £145,000 and redress the regressive nature of National Insurance, which negates much of the 20% band, converting it into a 32% tax burden. Labour’s promise is also that there will be no increase in employee NICs nor in VAT, although again that’s not enough … VAT has to come down from 20%.
Tag Archives: tax
Since PMQs earlier this week, when Ed Miliband accused the Tories of relying on donations from the rich and tax avoiders to fight and win the election, the fight of words has been rumbling on. Lord Fink, an ex-Treasurer of the Conservative Party first threatened to sue Miliband and then stated that everyone is doing it. Not so!
I have finally been published on my employer’s web site blog. The article, Conflicting Data Requirements: Privacy versus Transparency looks at the countervailing tendencies by governments legislating for citizen privacy and tax transparency. The article concludes with a series of technical challenges to meet the needs of both political initiatives. The article was syndicated on the Tabb Forum, and you can read that here. The article was originally provoked by a Gartner Press Release which suggests that location and the need for specific jurisdictional compliance will reduce as costs and
Osborne’s budget was not good for him and the Tories, and they were partly lucky, and partly cunning as they buried in stories that focused on other issues. There were four headline issues to consider, Macroeconomics, Tax, Housing and Beer.
The budget was presented last week and I decided to look at where the money comes from.
Interesting how much comes from personal taxation; NI is a payroll tax, much of it paid by business. 13% of the total income is new borrowing. I suppose I am most shocked by how little is collected through the ‘progressive’ income tax ( 23%).
Lord Turner certainly made a splash last week with his comments on the social value of banks and support for a ‘Tobin Tax’. Larry Elliot of the Guardian, offered us his thoughts in an article called “Forgotten brainchild that could transform the banking casino”. According to Elliot, Tobin argued