Sir Keith Joseph
Averages conceal wide variations. The median annual UK income for 2019 is said to be £29,588. Yet, according to figures from HMRC, nearly half of all Working adults in the UK, pay no income tax because they earn less than £12,500 per annum, the figure where income becomes taxable.
Many of the very wealthy avoid paying UK tax by becoming 'Non Dom' or pay themselves 'dividends' instead of 'incomes' which attract less tax. In the last 40 years, people in emerging economies and the world's richest people have seen the fastest growth in income. Wages in Western economies have grown more slowly.
Before we joined the E.C. (now the E.U.) in January 1973, Britain was known as the 'sick man of Europe' because its economy lagged behind countries such as France and Germany. In June 1974, seventeen months after we joined the EU, Sir Keith Joseph said this, in a speech at Upminster:
"Compare our position today with that of our neighbours in Germany, Sweden, Holland, France. They are no more talented than we are. Yet, compared to them, we have the longest working hours, the lowest pay and the lowest production per head. We have the highest taxes and the lowest investment. We have the least prosperity, the most poor, and the lowest pensions."
Not much changes folks. And who did Sir Keith blame for all this? No, it wasn't the E.U.- he said it was all the fault of Labour and socialism. Since the onset of Thatcher and Regan, the world's richest, have seen their wealth soar into the stratosphere. That was what the Conservative revolution was all about.
According to a government report, Brexit is likely to lead to Britain becoming worse off.
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3 comments:
Unfortunately this article is factually incorrect. It confuses two separate things; tax on dividends and capital gains tax. These two links show how these are taxed.
https://www.gov.uk/tax-on-dividends
https://www.gov.uk/capital-gains-tax
I agree with the basic thrust of the article that the very wealthy have seen the greatest growth in their income and that there is a minor industry in helping those with incomes in the top 5% or so avoid paying tax. HMRC has begun closing some of the loopholes and chasing up people who have abused the system to pay less tax in the past. Some of them are whingeing and trying to present themselves as victims.
I will correct the capital gains as I had made a mistaken assumption on that. Dividends an investor receives are not considered capital gains but rather income for that tax year. I will put a link in and correct the error.
Equality, or lack of it, should be judged over a lifetime. Younger folk on low incomes with low levels of wealth may think now that anyone richer should be taxed more. But age is a big driver of wealth and income. And many will come into money later in life, and some will get houses left to them.
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