Income Tax is fair

[Brigadier]

And yet, as shown in my opening example above, two people with exactly the same amount of income pay vastly different amounts of tax. One pays four times as much as the other.

This is obviously fair?

Might be a case of "it depends"?
How did the private investor get the money to invest, from which their dividends result?

If it was from earned income which was taxed at the equivalent rate at time of receipt (as that of your first neighbour example), is it fair that already taxed money is taxed a second time?

 

[JohnD]

Might be a case of "it depends"?

I'm interested in your idea that income tax should not be based on income.

Will you have a sort of morality police deciding if high income is due to luck, hard work, nepotism or dishonesty, and assigning different tax rates?

 

[robinbanks]

A slave.

Do slaves vote and pay tax?

 

[Brigadier]

I'm interested in your idea that income tax should not be based on income.

It wouldn't be correct to call it "income" tax then, so your argument is a semantic one.

Will you have a sort of morality police deciding if high income is due to luck, hard work, nepotism or dishonesty, and assigning different tax rates?

I won't be doing anything, as I'm not in charge of such things.

Do you think it fair that, in the case of fuel duty for the average motorist, VAT is charge on the duty i. e. a tax on a tax?

 

[ajohn]

If it was from earned income which was taxed at the equivalent rate at time of receipt (as that of your first neighbour example), is it fair that already taxed money is taxed a second time?

Depends on how its looked at. For some it becomes a never ending income. I assume share dealing companies pay tax at their normal rate. What about them?

A land lord collects rent for people who have paid tax or are receiving state aid. A business that rents a property will be paying tax, The land lord pays tax again.

Equity is a different area. Gains can be realised or used as security on a loan. The loan can be used to increase physical equity resulting in more income.

 

[JohnD]

It wouldn't be correct to call it "income" tax then, so your argument is a semantic one.

This thread is about income tax.

Do you think that two people with the same income should pay the same amount of income tax?

 

[Brigadier]

This thread is about income tax.

Do you think that two people with the same income should pay the same amount of income tax?

I thank you for your responses, and will back out of this thread.

 

[Justin Passing]

This thread is about income tax.

Do you think that two people with the same income should pay the same amount of income tax?

That's not whatyour examples illustrate,
they are qualitatively different incomes.
The second has already paid tax on the money.

Invalid poll. Fake propaganda thread. Like Andy's and Gas's.

 

[kingandy2nd]

Semantics I know but dividend tax isn’t income tax. Also, in the example the investor may also take losses, so no income.

I took a major financial risk and set up a business. I now employ 8 people all paying PAYE. I take minimal PAYE, pay my NI stamp. After Corporation tax, i pay the remainder to myself in Dividends.

The tax saving works out in my case as a couple of percentage points

Is it fair, hell no. I pay far more tax than I should.

 

[Ihavenojob]

Do you think that two people with the same income should pay the same amount of income tax?

They both have the ability to reduce their tax burden legally, if one chooses not to, they will pay more tax than the one who legally reduces it. That is fair.

 

[diy_fun_uk]

PAYE or self employed makes no difference.

I'm not sure I agree with that, although as I mentioned earlier I ain't no tax expert! Surely if you're PAYE, let's say in a public sector organisation for example, and earning £120k pa, you essentially have no choice but to pay the level of tax linked to your income. However a self employed person earning £120k pa could elect to be creative with their books and/or might have an accountant that ensures they pay minimal tax. Not saying that approach is necessarily 100% morally or legally justifiable, however in theory being PAYE or self employed can surely make a difference to the tax you pay?

 

[catlad]

You aren't comparing like with like.

If you earn a lump of money you pay income tax.
If you work a little you pay little tax. You are then a POOR person
If you work harder to build your lump of of money you pay a lot more tax.

So if you've worked really hard, paid a load of tax, you can invest your lump of cash and earn money on it. You are then a RICH person?

You're complaining that it's not fair that those figures are different.
Are you saying that the guy who has paid most tax on his money already, has to pay at an even higher rate when he tries to earn from it?

Careful whom you're calling dummy!

If it's in the game it should be under the same rules as everybody else's, not the elitist game.

 

[Justin Passing]

If it's in the game it should be under the same rules as everybody else's, not the elitist game.

You don't have to be in any elite to worker harder and earn more.

 

[Dork Lard]

So, when the Rogues, Vagabonds & Ne'er Do Well'rs MCC each chuck £5 in the kitty on every ride out . . . . That isn't a tax then is it?

 

[JohnD]

Taxes are not optional.

Though hatejob thinks they are.