Beer economics...

Easy_Rider · Mar 16, 2013

Neil":3th0b9ej said:
Easy_Rider":3th0b9ej said:

gtRTSdh":3th0b9ej said:

I get the point, but how deos the wealth of the 10 men actually relate in reality?

Click to expand...

Very few of us are net tax contributes. That means even though we may not get direct benefits we still use services such as schools, hospital, roads etc etc. That means if we had to pay for everything directly but didn't pay any tax, very few of us would actually pay less than our current tax bill. So it takes large corporation taxes and rich top tax band people to balance the books (or not balance as we currently do)
This article explains it a bit better
http://www.thisismoney.co.uk/money/news ... state.html
I don't recall what the percentages are.

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There's a big fallacy of the occluded middle in all of that - and big liberties being taking and assumed in the arguments made.

Probably the biggest number of higher rate taxpayers are nothing like mega rich - look at the top incomes in that table.

Going off an average month of direct taxation deductions in PAYE an NI, I've worked out my payments in direct taxation over 12 months are a few hundred shy of 20k - and whilst I'm probably a ways away from minimum wage, I'm hardly highly paid, nor mega rich. That's before you get to indirect taxation I'm paying, and in many cases, VAT on top of that. Are these articles considering any of that? The indirect taxation that probably cuts a lot harder at the lower end.

The people who you'd truly think of buggering off because of too much direct personal taxation are probably likely to be earning in the millions, and probably have mucho assistance by reasonably well paid accountants to minimise how much of their "income" actual goes to the tax-man. Something I very much expect is either not cost effective for, or they do not have the luxury of, for the occluded middle.

The reality is, it's rare, really, to see the super-rich directly affected by personal taxation - it tends to be Mr Average, in suburbia that takes the hit - after all, that's probably where the numbers are, in personal taxation.

Sounds like you are in the 5th quintile of the household income split according to the article I posted so you would be a be contributer by far.

I don't think it's talking about the mega rich at all, simply only 40% of households are net contributors. That is those with a household income above £35,500.

Neil · Mar 16, 2013

Thing is - the initial "tale" plus your post in support of it, and citing this argument, was conflating higher-rate taxpayers, with the "rich" and suggesting a certain degree of keeping them sweet, else they'd bugger off elsewhere.

But that is detached from reality. The true reality is, it's middle-England footing the tax bill, not the mega rich.

Easy_Rider · Mar 16, 2013

Like I said its the trend that's worrying, if the "middle" are now only a 2.7% net contributor now then the balance must have shifted somewhere, becauses taxes certainly haven't decreased then I believe its because the cost of services has increased quite significantly. A simple analogy would be the cost per head of a child in school has far outstripped inflation over the last two decades probably because teachers salaries have increased a lot, increased in insurance, energy, technology, h&s etc have all made it more expensive to educate a child now.

The reason I liked the original post is because it showed less than half paid the actual cost of the pint, the rest paid less, just like a net contributors or not in our society. Where the line falls is debatable for sure but I think more households are receivers than those households may believe.

Grannygrinder · Mar 16, 2013

Neil":2ug1jj2s said:
Thing is - the initial "tale" plus your post in support of it, and citing this argument, was conflating higher-rate taxpayers, with the "rich" and suggesting a certain degree of keeping them sweet, else they'd bugger off elsewhere.

But that is detached from reality. The true reality is, it's middle-England footing the tax bill, not the mega rich.

You make my point much better than i do

Neil · Mar 16, 2013

Easy_Rider":13mshhri said:
Like I said its the trend that's worrying, if the "middle" are now only a 2.7% net contributor now then the balance must have shifted somewhere, becauses taxes certainly haven't decreased then I believe its because the cost of services has increased quite significantly. A simple analogy would be the cost per head of a child in school has far outstripped inflation over the last two decades probably because teachers salaries have increased a lot, increased in insurance, energy, technology, h&s etc have all made it more expensive to educate a child now.

The reason I liked the original post is because it showed less than half paid the actual cost of the pint, the rest paid less, just like a net contributors or not in our society. Where the line falls is debatable for sure but I think more households are receivers than those households may believe.

No doubt there are some groups in society who don't have that accurate picture of whether they are net contributor, or not - but all the same - the "middle" is occluded. There's no real talk about the rich, or their tax scenario, just the natural limits for "normal" earners, and their tax scenario.

In short, it very much doesn't relate to the conclusion postulated in the initial "tale". And I'm really not buying into the almost consequential area your proposition is taking us too - voodoo economics.

Easy_Rider · Mar 16, 2013

Ok here is some basic economics. Again this is just some quick Internet research and I haven't taken into account any indirect tax which would be quite significant.

Average cost of educating one child in a state school as far as I can find out is £9000/yr
To pay £9000 is tax and NI one must earn £40,000, so that just covers one child and no other services. £40,000 happens to be the average household income.
Like I said that's very basic just to make a point, I know there is council tax, VAT etc I really don't have the inclination to put together a detailed point, but just want to point out when a service is used it does cost a lot.

Neil · Mar 16, 2013

Easy_Rider":1wjpkmfl said:
Ok here is some basic economics. Again this is just some quick Internet research and I haven't taken into account any indirect tax which would be quite significant.

Average cost of educating one child in a state school as far as I can find out is £9000/yr
To pay £9000 is tax and NI one must earn £40,000, so that just covers one child and no other services. £40,000 happens to be the average household income.
Like I said that's very basic just to make a point, I know there is council tax, VAT etc I really don't have the inclination to put together a detailed point, but just want to point out when a service is used it does cost a lot.

I get what you want to point out.

Thing is, that has digressed quite a bit with the point being made by the "tale" which is what you supported with, in agreement, and cited your argument - which is where I came in.

I get, for a lot of people, what they pay in what many assume they are paying in taxation (funny how much of that has slid from visibility in recent decades, though, ain't it - almost as if it's not un-coincidental...) may not seem that different to what they are putting in - perhaps even worse.

All the same - the suggestion that all of this hits the rich worst - which is where the thread came in with accusations and suggestions about what the rich would tolerate, is worlds apart.

NONE of what we've been discussing, either in the thread, or in the tables and commentary, has actually been focused on the rich - just the trite platitudes that society should be grateful for their continuing forbearance - which was the conclusion of the original post.

Easy_Rider · Mar 16, 2013

Yes it does tie into the original post. The cost of the pint was £10, only the 8th, 9th and 10th men paid £10 or more and so covering their costs.
Much the same way only 40% of society are net contributors.
I liked the analogy because fewer people were contributors than receivers.

Just to add, someone on a £1,000,000 salary will pay £460,000 tax a year and they would probably have private health care and private schooling for their children so not burdening the state much. It will take the average household of £40,000 income 50 years to contribute the same tax, (not taking into account any benefits).

Neil · Mar 16, 2013

Easy_Rider":1u3u45za said:
Yes it does tie into the original post. The cost of the pint was £10, only the 8th, 9th and 10th men paid £10 or more and so covering their costs.
Much the same way only 40% of society are net contributors.
I liked the analogy because fewer people were contributors than receivers.

The analogy failed - because the assumption / conclusion was that the 10th guy will just take his ball home.

The reality is, there's a whole swathe of middle England paying that 40%.

Easy_Rider":1u3u45za said:
Just to add, someone on a £1,000,000 salary will pay £460,000 tax a year and they would probably have private health care and private schooling for their children so not burdening the state much. It will take the average household of £40,000 income 50 years to contribute the same tax, (not taking into account any benefits).

So you suspect the people really propping up the tax bucket, out of personal taxation, are the 1 mil + earners?

How many of those earning in the 100s of thousands, to millions, would you imagine, are simply paying taxation like the plebs, as PAYE?

Easy_Rider · Mar 16, 2013

Jeez Neil, did I say they were propping anything up? Yes there are over 11,000 people earning £1million or a lot more, i would be interested to know just how much they did contribute as a percentage of total revenues but i think you're just making an argument for yourself to try to say I think they are propping the system up.

My point is there are fewer net contributors than receivers, and some may be surprised to learn they are not net contributors despite earning a good income and not claiming benefits, it's a point of interest. That is all, thank you and good night.

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