50% Income Tax Looms For UK: Some Are Elated To See It!
Posted: Wednesday, March 10, 2010
by Joel Hendon
http://hebronics.org/index.html
Many British citizens may see their income tax jump to 50% next month. According to the Americano.com, those earning over 150,000 ($227,000) per year will see their incomes taxed 50%.This will be interesting to watch. We can see, not only the reactions of those whose income taxes take half their wages, but also see just what it does to their ailing economy.
A United Kingdom organization responsible for promoting ethical and responsible standards, the Institute of Directors issued the following statement concerning the tax:
"The 50 per cent rate is a policy that should never have been announced. The indirect impact on entrepreneurial aspiration, foreign investment and business confidence is likely to be significant. We suspect that little or no money will be raised and we urge the next government to reverse the increase as soon as possible."
This tax has been pushed by the Labor Party and has been defended by the government. At the present, the top 1% of taxpayers pay one-fourth of all taxes in the United Kingdom. The top 10% pay more than one-half the taxes.
Stephen Timms, Tax Photo minister, says that it will not harm the economy, but on the contrary, will have a positive effect. He also adds that it will affect only one percent of the population and that those with the broadest shoulders should bear their share of the load.
There are still some who can see the other side of the coin, however. Angela Knight, who is the CEO of the trade association representing UK banks feels this tax will be counterproductive. She says that the unleashing of the anti-bank campaign against banks can work against the UK.. She also added:
"We all understand the politics of life, but spending too much time on the politics of an issue means you can actually lose what you really need, Which is a job creator."
This lady is wise indeed. The majority of the people affected by this tax are corporations who work people. When their own taxes are half their earnings, they will, of necessity, have to lay off some workers, which in turn will reduce productivity and earnings, which will then lower the income and income taxes.
Others, who are opposed to the tax and opposed to the Labor party see this as a wonderful thing to happen at this time. 2010, as in the U.S., is an election year in Britain and they see the opportunity to press the higher tax as a campaign issue with the idea that it will be heavily opposed by the voters as well.
The United Kingdom is already a full blown socialist country and this is evidence of the results of such. Those who believe in "sharing the wealth" so much that all have little or nothing, will awaken to the fact that they have killed all the geese that laid golden eggs.
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Top-level comments on this article: (1 total)It's always good for the economy to take from those who produce and give to those who refuse to do so...of course, once the UK introduced a 'progressive' income tax system with the advent of Labour Gov'ts in the 1920's, their productivety took a nose dive...that they didn't recover from until the reforms introduced by the Thatcher Government in the late 1970's and early 1980's.Thanks for the comment Richard. It just seems to me that 50% taken from one's income would be incentive to quit earning. Huh? What really worries me is that heavy taxation is absolutely certain for the U.S. and that it will create another nosedive for the economy and send unemployment through the roof..well, with all the taxes that are hidden within the government's plan to seize control of the health care industry (let's not call it "reform", it's not reform it's government seizure), as well as the Cap & Trade bill that passed the house, it will cripple what is left of the economy. We are already in a downward spiral. Last year came the tipping point. There are now more people working for the government, taking money OUT of the economy than there are actually producing wealth. That's something that many people just don't understand. The government doesn't "create" anything. It merely takes away from the economy. Those people who are "working" for the the government aren't contributing anything...they could be working in the private sector, which is where wealth is created....but they are not. When more and more people "take" rather than "contribute" is when the decline becomes too much for any economy to bare. The soviet economy teetered along for 72 years before it finally collapsed of it's own weight. Ours will collapse far sooner...
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