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Two-thirds Of Millionaires Left Britain To Avoid 50% Tax Rat

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Two-thirds of millionaires left Britain to avoid 50% tax rat Dec 06, 2012
As the article says, raising taxes decreased revenue for the government:

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.


http://www.telegraph.co.uk/news/politic ... -rate.html

rayznack
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Re: Two-thirds Of Millionaires Left Britain To Avoid 50% Tax Dec 06, 2012
Tax avoidance is rife at the moment in the UK. Many large companies such as Amazon and Starbucks do not pay their fair share of Corpoation Tax.
My daughter works for an American company in the UK and there is a big project on the horizon to reduce their liability for tax in the UK.

I do believe that if we had more reasonable tax rates the government would generate more tax.

Of course tax avoidance isn't illegal but tax avasion is.
BMreformed
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Re: Two-thirds Of Millionaires Left Britain To Avoid 50% Tax Dec 06, 2012
Tax avoidance is rife at the moment in the UK. Many large companies such as Amazon and Starbucks do not pay their fair share of Corpoation Tax.


That means lower costs of goods for the consumer because companies that do pay taxes pass the extra cost of taxes into the price of the product.

Companies paying no taxes have cheaper products.

Taxing companies is basically a shell game I don't understand.
rayznack
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Re: Two-thirds Of Millionaires Left Britain To Avoid 50% Tax Dec 06, 2012
Do you really think that the companies pas their 'savings' on to the customers?
BMreformed
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Re: Two-thirds Of Millionaires Left Britain To Avoid 50% Tax Dec 07, 2012
The people employed by a business pay taxes. Why does the business need to pay taxes? Does the business use infrastructure or receive medical treatment payed for by the state?
rayznack
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Re: Two-thirds Of Millionaires Left Britain To Avoid 50% Tax Dec 07, 2012
Medical treatment is payed for by National Insurance contributions. Why shouldn't companies pay tax on their profits? I have to pay tax on my income from rentals as well as my earned income.
I don't believe companies like Amazon sell their goods for less because they don't pay any tax in the UK. They make millions of £s profit in the UK and should be taxed on it, as we are.
BMreformed
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Re: Two-thirds Of Millionaires Left Britain To Avoid 50% Tax Dec 07, 2012
Why shouldn't companies pay tax on their profits?


Because companies are taxed for services they never use.

A company making record profits is great as it can expand and hire more workers.

All employees are taxed individually so I don't see the horror of companies making money.
rayznack
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Re: Two-thirds Of Millionaires Left Britain To Avoid 50% Tax Dec 07, 2012
I can see what you're saying.

Starbucks have agreed to pay the treasury £20million. I think they were being boycotted by the British public in favour of Costas.

I still don't like the idea of them making mega bucks and not contributing to our society though.
BMreformed
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Re: Two-thirds Of Millionaires Left Britain To Avoid 50% Tax Dec 08, 2012
It is not too far-fetched to see a nonnatural person like a company as an entity that uses public infrastructure and facilities.
If companies were not taxed, everybody would have a limited, and let the limited do the work and purchasing.
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