Latest Moan From You and Me 2024

It isn't wealth per se that's the problem. There will always be rich and poor, of course. But things have got out of hand. A first step would be a level playing field for tax. No loopholes for the wealthy, be that on income or inheritance. Then tougher employment laws so companies cannot wiggle out of their obligations to employees, eg by keeping contracted hrs just below the level at which sick pay or holiday entitlement kicks in. Also, property laws so houses are for living in, not for investment purposes.

A few changes could make the world of difference.

 

I'm fairly sure the taxation system is supposed to make wealth fair. Except of course it doesn't, but that's surely the fault of policy makers, ie governments.

Take the UK policy for example. At a summary level, it looks quite fair. You don't pay tax at all on your earnings upto a certain point, then you pay 28% (not 20%, let's be clear, national insurance is just income tax), then 48% then I think there's a higher band. Great. The more you earn, the more you can afford, the more you pay into society.

It all falls apart when income is not treat as income, but where clever accounting labels it as something else. That's unfair. What makes it even more unfair is that the kind of clever accounting I'm talking about is not really accessible to most of us. I mean I'm sure if I was daft enough I could probably hire a really good accountant to do something with my finances, but if I did that, their fee would likely be more than I earn.

So I don't think we can blame rich business people for being rich and successful within the law. If we have a beef, maybe we take that up with the politicians. As it stands today, if I was as rich as Elon Musk, I'd be over the moon that the haters are directing their anger at me. I'd continue to be rich. I'd start to get concerned if the haters started lobbying the governments of the world, because then I'd worry that with enough political pressure, the policy landscape that allows people to become stinking rich might suddenly change.

 

Oh, my beef is definitely with governments on this. But wealthy people hold enormous sway over gov policy and over the media reporting of it, which is why we have a tax system that is deliberately complicated and acceptable to the rich.

Tax law should be very simple and 100% applicable.

 

Hence why I said at summary level it looks fair. It would make for a lengthy post indeed if I'd attempted to list the bazillion different ways we get squeezed for tax, and I wouldn't have the knowledge and expertise to do so anyway.

 

I don't have anything against people being rich, obviously that depends on how they get rich, as long as they spend their wealth and create jobs for others.

It's how the world goes round.

 

My last boss was "is" the salt of the earth, even still invites me to firms meals at Christmas, last year we went to Brands Hatch in the summer, small employers are often the best.

The Big company I worked for for 36yrs gave me nothing more than the law said they had to.

 

I have no doubt. I've met you once years ago, you are a top bloke.

I also have had bosses that genuinely do their best for their employees. One of which I still keep in touch with years later. So I have no doubt at all that such bosses exist. But I think they are the exception rather than the norm, and dare I say it, I think it tends to be smaller business where the owner can actually know all the staff.

 

I don't think we were lumping business-owners together, @shiney. We were discussing members of the billionaire class.

I'd be happy to see no tax below £15k, then a 10% rate up to £25k, and then a 25% rate on everything else. And I do mean everything - income from employment, or shares, or company dividends, or inheritance, or gifts, etc. I would also like to see a 25% exit tax on funds going offshore. And my rules would apply to absolutely everyone, Royals included. There would be no exceptions, no exemptions.

 

But does the maths on that add up?

 

Well, hard to say, as currently lots of the tax avoidance is hidden from view. The Queen had amassed a fortune of around £9 billion (although it is tricky to calculate precisely as the dividing line between Royal personal artefacts and items owned by the nation is kept deliberately vague). 25% of that would be a fair bit.

And unavoidable inheritance tax at 25% would almost certainly bring in more than the current 40% as this is mostly only paid by those who don't have enough money to use diversion tactics.

I think people object to inheritance tax because 40% seems a lot. 25% would be more palatable.