Quote:
Originally Posted by Damien
In that circumstance however it can make a large difference. 20% of £15,000 would hurt someone on that wage a lot more than 20% on £200,000. It would also take a lot of money out of the budget.
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Might not take money out of the budget. A flat rate of say 10% across the board would probably decrease tax dodging, encourage wealth creation and hence increase spending (and profits), stimulate overseas investment (due to the low tax rate) and create jobs (which would then be taxed.
.................or we can simply continue to disincentivize the creation of wealth & jobs in this country
As for 20% of £15k being more painful that 20% of £200k, thats true but it's still fair. What's not fair is taxing someone who earns more, more. They pay more tax simply by dint of earning more, it's not fair to then also put them on a higher tax rate. It leads to a disincentive to make more money/grow your business. It also stops people feeling like we are all in this together when some of us have to pay proportionally more tax.....