Will Scrapping Non-Dom Status Scare off all the Rich Tax Payers...?
New statistics show that the top 1% of earners pay 28% of income tax, which comes to £85 billion. This is roughly three times what the bottom half of the workforce pay.
The problem with relying so heavily on such a small number of workers for such a large portion of our tax revenue is fragility. It means that fewer people have to leave to have more of an impact.
Some of these will be non-doms, and this is more likely if they are very high income earners: approximately 3/10 people earning over £5 million a year are registered as non-doms in the UK, of which there are roughly 74 000, up slightly since the Pandemic.
Non doms come mainly from Western Europe, America and India. And having non-dom status means they only pay tax on their UK earnings, not on their earnings abroad.
But that's going to change...
Jeremy Hunt, the previous chancellor announced that he'd be phasing out non-dom status before the general election. And now that Labour are in power they are more than likely to speed up this phasing out of non-dom tax status, so that people living in Britain pay income on all their world wide income.
But the problem with scrapping non-dom status is that it could also bring non-UK assets in line for inheritance tax, and that's potentially £millions of pounds£ per individual heading to the British State, which could make Britain a VERY unattractive country to live for Ultra High Net Wealth individuals.
I mean I think our inheritance tax is something like 40% over around £500K worth of assets, and with most non-doms earning £5 million you can imagine they have several £millions£ in wealth!
I mean personally I'm all in favour of taxing the rich more, I am firm believer that wealth is down mainly to luck and privilege, and I'm especially a fan of parents NOT passing down their wealth to their not-necessarily hard working or talented or deserving children.
However these policies have to be set within an international framework, otherwise wealthy individuals are just going to bugger off to countries which offer lower taxes, and there are plenty of those!
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The whole banking/wages/taxation illusion is a fraud.
We have to have workers, we don't have to have dollars.™
https://theanarchistlibrary.org/library/petr-kropotkin-the-conquest-of-bread
For sure, money and all that goes with it is a social construction, damned useful though, I don't think modern global society could exist without is!
Here are two books that offer different, non-monetary, ways to manage trade: https://archive.org/details/lookingbackward01bellgoog and https://www.abelard.org/e-f-russell.php.
Cheers!
I'm no economist but I do feel like this is such a minor thing that's as you say is dependent on such fragile metrics when there are so, so many other things that should be addressed that could save us substantially more.
Just speaking from the stories of my own direct family living there, the level of waste, whether it's in the NHS or pretty much any other service sector, is mind boggling. You could write about it in a fantasy novel and it would still be hard to believe.
I think the government seems to only just be learning (now it's too late lol) the idea that sometimes, spending more money now saves a lot more money in the future.
Like how they refused a nuclear power plant because 'it would take a decade to build and we need energy now'. Well thanks. Ten years have passed and we still need energy, and we have no nuclear plant for at least 10 more years. Cheers!
'good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that'd still be keeping his feet dry in ten years' time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet.'
Sorry for the lengthy comment
I'm not entirely convinced by individualist arguments when objectively the very poorest in the UK can't afford to eat and heat it's not just about poor decisions! Waste in the NHS I know very little about@
Oh my comment isn't about telling people to have less avocado toast. It's:
People can't afford lasting investments that leave them better off, so they are forced to pay even more for short term investments that cripple them further. And this metaphor I want to extend to our government (such as nuclear energy) and social programs who, for example in the NHS, still use Windows 95 to save money up upgrading, which comes at the long term cost of, well, a shitty NHS and countless lives lost and sick for far longer than they need to be.
Sometimes, we will have to bite the bullet and spend more than we're comfortable with
Oh I see I take your point about lack of long term objectives. I'm not a fan of nuclear given that I don't trust future governments to manage its toxic legacy. I mean if Rome had had nuclear power I dread to think the state its Empire would have been in a few decades after it collapsed!
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