Posts Tagged ‘Tax the rich’
READ THIS LESSON FROM GREAT BRITAIN -Great Britain Loses Two-Thirds of All Millionaires after Raising Tax Rate
In the 2009-10 tax year, more than 16,000 people declared an annual income of more than £1 million to HM Revenue and Customs.
This number fell to just 6,000 after Gordon Brown introduced the new 50p top rate of income tax shortly before the last general election.
The figures have been seized upon by the Conservatives to claim that increasing the highest rate of tax actually led to a loss in revenues for the Government.
It is believed that rich Britons moved abroad or took steps to avoid paying the new levy by reducing their taxable incomes.
George Osborne, the Chancellor, announced in the Budget earlier this year that the 50p top rate will be reduced to 45p from next April.Since the announcement, the number of people declaring annual incomes of more than £1 million has risen to 10,000.
However, the number of million-pound earners is still far below the level recorded even at the height of the recession and financial crisis.
Last night, Harriet Baldwin, the Conservative MP who uncovered the latest figures, said: “Labour’s ideological tax hike led to a tax cull of millionaires.
Far from raising funds, it actually cost the UK £7 billion in lost tax revenue.
“Labour now needs to admit that their policies resulted in millionaires paying less tax and come clean about whether they would reintroduce this failed policy if they were in power.”
Mr Osborne argued earlier this year that the 50p rate was deterring entrepreneurs from coming to Britain.
The Chancellor wanted to scrap the top rate altogether for those earning more than £150,000 a year – and return to the previous system of a basic and top rate of tax.
This was blocked by the Liberal Democrats without a new mansion tax being introduced.
Labour will hold a parliamentary debate today to criticise the decision to reduce the top rate, which Ed Miliband, the Labour leader, has described as a “tax cut for millionaires”.
Senior Coalition figures are locked in negotiations over next Wednesday’s Autumn Statement which will set out government tax policies for next year.
The Tories wish to freeze out-of-work benefits. The handouts usually rise in line with inflation, which has meant that the unemployed are likely to receive a higher rise than most workers can expect.
It is understood that the Lib Dems will only allow the benefits freeze if taxes on the rich are increased.
The Lib Dems have long cherished an increase in taxes for multi-million pound properties. David Cameron has ruled out changes to council tax.
A READER POST ——-The Evil Rich and their “Fair Share”
For years now we have let the left frame the narrative that the rich in this country don’t pay their fair share. Even our President has joined in this effort to demonize the very folks who are the engine of our economy, the small business owners.
“The revenue we’re talking about isn’t coming out of the pockets of middle-class families that are struggling — it’s coming out of folks who are doing extraordinarily well and who are enjoying the lowest tax rates since before I was born. If you’re a — if you are a wealthy CEO or a … hedge fund manager in America right now, your taxes are lower than they have ever been. They’re lower than they’ve been since the 1950s.” – President Obama, June 29, 2011.
So a wealthy CEO or a hedge fund manager are making too much money and not paying enough.
For the honest answer to that question, let us turn to an organization that isn’t always very friendly to the United States, even though it was formed, in part by the US.
The Organization for Economic Cooperation and Development (OECD) is an intergovernmental economic organization in which the 30 member countries discuss, develop and analyze economic and social policy. While all of the member countries are considered to be economically advanced and collectively produce two-thirds of the world’s goods and services, membership is limited only by a country’s commitment to a market economy and a pluralistic democracy.
The OECD was actually born to replace the OEEC, or the Organization for European Economic Cooperation which itself was created to administer the Marshall Plan. In 1961 the OECD was formed to takeover from the OEEC, with the emphasis being to develop strong economies in its member countries.
In a 2008 study released by the OECD, it found that America had the most progressive income tax system in the industrialized world. By looking at the richest 10% in each country, they found that America has the greatest share of personal and payroll taxes combined than in any other country in the world, for the richest 10%. In the US, the richest 10% pay a whopping 45.1% of their income in taxes; more than every other industrialized country in the world.
The next step is to see how much of the market income is earned by that top 10%. In America, they earn 33.5% of the market share of income. When you take those two figures and find the ratio of taxes to income, a surprising statistic pops out. Those evil rich people in America pay more in taxes in relation to their income than any other country, also.
No other country places that much of a burden on their top income earners, yet to hear the left – and our President – tell it, those evil rich people just need to turn over more of their income because it is only fair.
How dare we let the left frame the debate like this. We are not suffering from an income problem in this country; we are suffering from a SPENDING problem. But Obama still wants to increase taxes on small business owners, who are in many cases among the top 10% of income earners in America. This of course will only worsen the situation economically here in the US, for if the small business owners are afraid that more of their private property will be confiscated, then our economy will continue to drag along on the bottom.
Thomas Jefferson said it best –
“When the people fear their government, there is tyranny; when the government fears the people, there is liberty.”
The economy is scheduled to plunge off a cliff in January.
Back in the first two years after the Progressive’s November Revolution of 2008, the big government party enacted tax increases not scheduled to take place until after the 2012 elections. They also passed Obamacare which carries within it multiple tax increases, which are also scheduled to take affect after the 2012 election. Combine these with previous tax rollbacks scheduled to expire in January 2013 and we are looking at the major economic crisis the progressives have worked so hard to create so they can then work so hard to solve.
In 2010 the voters got a chance to let the central planners know what they thought of what had been done with the power entrusted to them in 2008. However, with only one house of Congress in Republican hands they were unable to reverse any of the changes made in the first two years of the Obama administration, so come January we hit the wall.
This manufactured economic crisis will be used by the triumphant Progressives as proof that capitalism doesn’t work. Then following their play book, since too much government wrecked the economy we need more government to fix the economy. They will tighten the already strangulating regulatory straight jacket. If Obamacare is upheld and implemented, within a few years it will kill the private insurance industry as company after company figures out it is cheaper to pay the fines imposed than purchase the insurance required. The flight of paying customers from the private insurance companies will force them into bankruptcy. Remember even if they used deceptive language at the moment of passing the bill President Obama, Nancy Pelosi, and Harry Reid were on the record many times saying what they were aiming at was a single payer European type healthcare system. And we can all see how well that is working out for the Europeans.
They will also use the failure of the insurance industry as more proof that capitalism doesn’t work.
As President Obama travels around the country inciting class warfare with his constant attacks on the millionaires and billionaires which he tells us aren’t paying their fair share he continues to accept vast amounts of money from those same millionaires and billionaires. While his administration imposes regulation after regulation that every day makes it harder to start new businesses, maintain or expand small businesses he turns a blind eye to the continued casino like atmosphere at the largest banks: the ones that are too big to fail and which should be too big to bail.
The largest bank in the country, J. P. Morgan Chase just lost another couple of billions in risky credit derivatives that their own chairman says were ill-conceived, poorly executed, and not managed very well. This is the same bank that President Obama says is one the best run banks in America and the same chairman who has visited the Whitehouse at least 18 times since 2009.. The Chairman of the Board Jamie Diamom, the one in charge when all the poor execution was going on was just voted 23 million dollars in compensation while the stockholders take it in the wallet.
Crony capitalism, where the public takes the risk and bears the loss while the cronies who contribute money to the politicians reap the benefits is alive and well. Favored corporation such as GE whose chairman, Jeffrey R. Immelt serves on the President’s Council on Jobs and Competitiveness makes billions in profit and often pays nothing in taxes. Personally I believe there should be no corporate taxes since they are in reality double taxation but taxing some while exempting others is the worst kind of Corporatism and the President merely uses this system to reward donors and then turns around and attacks this pay-to-play system as an example of the rich not paying their fair share.
There is a con game going on. Straw men are being set up only to be knocked down. Our fellow Americans who get their news from Jay Leno and the Daily Show have no idea what is being done. They swallow the party line as belched out by the Corporations Once Known as the Mainstream Media and troop to the polls to vote for the same party their fathers and grandfathers voted for. But the major parties today aren’t ideologically, organizationally, or in practice the same partiesAmericahas known.
Neither party stands for smaller government, individual freedom, and economic opportunity. At one time they both stood for these fundamentally American concepts. Operating like the twin heads of one bird of prey, both major parties expand the government and add to the regulatory burden which is changing America from the Land of the Free into a totalitarian morass that is stagnating its way from the first world to the second world.
From the beginning of the primary process it was obvious that Romney was the anointed choice of the establishment Republicans and the media. Now that he has been all but chosen it is time for the Democrats to scare up a third party somewhere somehow. President Obama’s record of socialist accomplishments is so stunning it has even aroused enough of the politically comatose to push him back to the 40+% of the electorate who would vote for a yellow dog before they would vote for anyone except a Democrat. He has lost the independents and the undecided. His only chance for victory is a third party, so there will be a third party even if the Democrats have to invent it and pay for it themselves.
As the big day, the day when we as voters will get a chance to reverse the November Revolution of 2008, watch as a third party emerges, well-funded and well prepared. This third party will say all the right things. They will come across as conservative ideologically and economically. They will probably even try to portray themselves as the organized expression of the thousands of independent Tea Parties across the country.
No third party has won a presidential election inAmericasince 1860. The rules have been rigged, and so many people vote instinctively for the party their fathers voted for the odds of a third party winning are close to the odds of winning the power ball.
If the progressives win one more election they will cement in their transformation ofAmericafrom a land based on equal opportunity to a land of based on equal outcome. Everyone gets the same thing except of course for those who divvy up the swag. Those who divide what they take from the producers to give to the non-producers always seem to end up with everything while everyone else gets just enough to get by long enough to produce something else that can be expropriated by an all-powerful central government.
The Progressives who have taken control ofAmericaact as if all the money we earn is theirs and the only debate is about how much they will let us keep. And they constantly remind us that the government can’t afford to leave us with too much money. If they did we wouldn’t be dependent on them.
Maybe we should change the motto from E Pluribus Unum to What’s Mine is Mine What’s Yours is Negotiable.
Dr. Owens teaches History, Political Science, and Religion for Southside Virginia Community College. He is the Historian of the Future and the author of the History of the Future @ http://drrobertowens.com © 2012 Robert R. Owens firstname.lastname@example.org Follow Dr. Robert Owens on Facebook or Twitter @ Drrobertowens