Benefit system fraud

[Lt Kije]

Sadly Asp, I am not in the super rich bracket, I will let you know when I get a hundred million on the lottery, and the name of my financial adviser

[inky pete]

The biggest fraudsters are the banks and the super rich that use tax avoidance :!: :!:

 

Wrong as usual Lt.

 

The largest single item on which tax or duty is evaded is actually cigarettes and rolling tobacco brought in from abroad - an estimated £2 billion a year on that one item alone. Bringing a few kilos of ready rubbed back from Teneriffe is hardly the province of billionaires, is it?

 

Also well up there is income tax and VAT evaded by self employed tradesmen doing cash jobs - another couple of billion there - along with claiming personal costs and purchases as business expenses to reduce the tax bill.

 

Selling for profit on e-bay and the like is another big one. Income tax should be paid on profits made, but very, very few people declare this income.

 

So anyone who has ever brought back excess tobacco back from holiday, bought cheap tobacco from a friend, offered a tradesman cash for a discount, done a cash job without putting through the books, or sold anything on e-bay for a profit, is a fat cat tax evader!!!

[inky pete]

Who mentioned "same take home pay"? Not me. Simples - just apply a progressive tax system - more you earn (or in some cases make), the more you pay - and it is happening - problem is, 50p ain't high enough and evasion/avoidance arn't being tackled.

 

We already have a "progressive" tax system - that's kind of the whole point of percentages!

 

40% of a £150,000 salary is a much bigger tax bill than 40% of a £50,000 one!

[inky pete]

"From each according to their means, to each according to their needs" - sounds a reasonable proposition if you want to live in a cohesive, civilized society. After all, arn't we all "in it" together"?!

 

So if my "needs" are going to be met regardless of what I do, what is my incentive to be one of those with "means"??????

[Lt Kije]

Not wrong, how much tax does the UK loose when business makes all its profit in the Uk, but has in head quarters in a tax haven and the rich, can put their money into trust founds, as Mr Osborne does

[asperity]

In a word = none, so long as it is tax avoidance (legal) and not tax evasion (illegal). You really are hard work :roll: :roll:

[observer]

Ever heard of ambition Inky? It's about climbing the slippery slope in life or any organisation, and doesn't rely solely on monetary incentive. So this idea, that IF the rich were properly taxed, would mean a shortage of CEOs everywhere - I doubt it. I know we already have a progressive tax system - that's what I said - but imo the top rate could go back to over 80% where it used to be prior to Maggie.

[asperity]

When you put the top rate up above the peak of the Laffer curve the tax revenue falls. And the peak is a lot nearer 45% than 80% as has been proved time and again. When the 50% rate was introduced even the treasury admitted it wouldn't bring in any more revenue, it was introduced to keep people like Obs happy (but seems to have failed even in that!!) :roll: :wink:

[observer]

The tax system fails due to a lack of political will on the part of successive Governments, over complexity providing legal loopholes and inadequate investigatory resources and enforcement. :roll:

[asperity]

I certainly agree with the over complexity issue. A flat rate tax with increased lower threshold to take the low paid out of taxation altogether would be more sensible than the nightmare we have at the moment. Where is the sense in taxing people and allowing them to claim some of it back in benefits which involves employing an army of bureaucrats to get the sums wrong? :angry: