Is it time to leave the UK? - Page 4

OLD BOY · 07-09-2022, 14:20

Quote:

Originally Posted by Maggy

Think of it as a way of paying forward for those who are just starting out and don't have wealthy family to help out.Why should being successful exempt you from paying taxes?

It shouldn’t exempt you from paying taxes, but you shouldn’t face punitive rates of tax either.

If you tax success too much, where’s the incentive?

**Hugh** · 07-09-2022, 14:28

Quote:

Originally Posted by OLD BOY

It shouldn’t exempt you from paying taxes, but you shouldn’t face punitive rates of tax either.

If you tax success too much, where’s the incentive?

My friend is a Tax Partner at one of the Big Four firms - he earns a high six figure salary, and gets taxed at approx. 53% of his gross earnings.

As he puts it "my tax is a very large figure, but it still leaves a very large figure…".

He believes that those who earn a reasonable amount should pay their fair share, rather than try to avoid their contributions to society.

ianch99 · 07-09-2022, 16:16

Quote:

Originally Posted by OLD BOY

It shouldn’t exempt you from paying taxes, but you shouldn’t face punitive rates of tax either.

If you tax success too much, where’s the incentive?

But punitive, in this context, is a relative term. I would argue that high net worth individuals should pay the same effective tax rate on the increase in their wealth (not just "income") as you & I. Would you not agree?

OLD BOY · 07-09-2022, 16:44

Quote:

Originally Posted by ianch99

But punitive, in this context, is a relative term. I would argue that high net worth individuals should pay the same effective tax rate on the increase in their wealth (not just "income") as you & I. Would you not agree?

By wealth, you mean capital. People’s houses. Were they not taxed on these items when they were bought? How many times do you want to tax people?

You will lose the best talent if you carry on like that.

**Hugh** · 07-09-2022, 17:16

Quote:

Originally Posted by OLD BOY

By wealth, you mean capital. People’s houses. Were they not taxed on these items when they were bought? How many times do you want to tax people?

You will lose the best talent if you carry on like that.

Lose them to where?

**Paul** · 07-09-2022, 18:07

Quote:

Originally Posted by ianch99

I would argue that high net worth individuals should pay the same effective tax rate on the increase in their wealth

Depends on what you are using to define "net worth".
I see no good reason to tax people on their (main) residence.

I bought my house (in 1992) to live in.
Its not an investment, its my home (and my families).
Is it my fault its gone up in value so much since then ? [ No. ]

Whatever its now "worth" is just meaningless.
I dont actually have that money, and never will.

pip08456 · 07-09-2022, 18:12

Quote:

Originally Posted by Hugh

Lose them to where?

From 2005 (and it's happened before).

Quote:

More than 1.44 million graduates have left the UK to look for more highly paid jobs in countries such as the United States, Canada and Australia. That far outweighs 1.26 million immigrant graduates in the UK, leaving a net "brain loss" of some 200,000 people.

Remember the "Brain Drain" in the 70's?

jfman · 07-09-2022, 18:15

What proportion is that of total graduates?

ianch99 · 07-09-2022, 18:19

Quote:

Originally Posted by Paul

Depends on what you are using to define "net worth".
I see no good reason to tax people on their (main) residence.

I bought my house (in 1992) to live in.
Its not an investment, its my home (and my families).
Is it my fault its gone up in value so much since then ? [ No. ]

Whatever its now "worth" is just meaningless.
I dont actually have that money, and never will.

You, like OB, are immediately transposing wealth with the (family) home. This is not valid in the scenario I am outlining. The wealth of high net worth individuals (let's say 5+ million total) is far more distributed e.g. dividends, stocks, shares, property, bitcoin, antiques, cars, paintings, etc, etc.

I am not suggesting taxing people's primary residence, far from it.

**Paul** · 07-09-2022, 18:22

Quote:

Originally Posted by ianch99

You, like OB, are immediately transposing wealth with the (family) home.

No, I am questioning what you define as net worth [wealth] since you make no mention of it.

Quote:

Originally Posted by ianch99

I am not suggesting taxing people's primary residence, far from it.

Good. So thats cleared that up.

Itshim · 07-09-2022, 18:53

Quote:

Originally Posted by OLD BOY

By wealth, you mean capital. People’s houses. Were they not taxed on these items when they were bought? How many times do you want to tax people?

You will lose the best talent if you carry on like that.

My father bought the house I live in for £220 just had it valued just under 1 million :shocked : could be that the area has people that bought new back then , doubt they would have that much spare cash, l know of at least one old fella , that has a prepayment. meter because he struggles , yes I do feed it for him not that he knows that. So please don't equate home value with bank balances

not a dig at you old boy. Have you seen the internet only posts seem to support streaming services.

ianch99 · 08-09-2022, 09:51

Quote:

Originally Posted by pip08456

From 2005 (and it's happened before).

Remember the "Brain Drain" in the 70's?

You are assuming every one is motivated by greed, above all things. If you are transitioning to a society that is a more inclusive one, based on shared responsibility & support, you would attract people. You can ask the question why the Scandinavian model has not failed? Surely, based on your logic, they would have failed decades ago.

---------- Post added at 09:51 ---------- Previous post was at 09:47 ----------

Quote:

Originally Posted by Paul

No, I am questioning what you define as net worth [wealth] since you make no mention of it

See post above: https://www.cableforum.uk/board/show...3&postcount=54

As for the primary residence, I never mentioned it as a taxable asset. It was OB's deliberate deflection that introduced this. A classic approach

Me: "I suggest we tax the wealth of high net worth individuals"
OB: "Look, they want to tax your home!!!"

tweetiepooh · 08-09-2022, 10:03

You main home is exempt from capital gains, and to an extent I don't have an issue with taxing capital gain but to tax actual wealth does not seem a good move.
People can gain wealth by spending which may be taxed, why should that be taxed again? I feel the same about inheritance tax that could bankrupt if they gain wealth but not cash.

**Hugh** · 08-09-2022, 10:29

It’s unlikely anyone is bankrupted by inheritance tax - they can always sell the assets to pay the inheritance tax, or they can pay the Inheritance Tax in 10 annual installments.

jfman · 08-09-2022, 10:47

Quote:

Originally Posted by Hugh

It’s unlikely anyone is bankrupted by inheritance tax - they can always sell the assets to pay the inheritance tax, or they can pay the Inheritance Tax in 10 annual installments.

Or if the asset is a home get a mortgage for the amount of tax.