First France, Now Britain Plans To Slit Economic Throat

[pspr]

As part of the global push to tax the rich, Britain is now debating an “emergency” wealth tax. But the idea has hit fierce opposition from conservatives, who say the “politics of envy” hasn’t made the country rich.

Deputy Prime Minster Nick Clegg, leader of the Liberal-Democrat Party, has proposed a one-time tax on the wealth (rather than the incomes) of high-net-worth Britons. The details aren’t clear, but Clegg says the country is facing an economic war caused by a prolonged recession, and needs to tax the rich in order to avoid social unrest.

He told the Guardian that unless the country “hardwired fairness” into the budget, “I don't think the process will be either socially or politically sustainable or acceptable."

Chancellor George Osborn shot back, saying the plan would chase out the rich and make the odds of full recovery even worse. Bernard Jenkin, the chair of the House of Commons' public administration committee, told the BBC that the tax could strangle the golden geese of Britain. “If the politics of envy made a country rich, we'd be very rich … Most rich people are contributing far more in tax than other people."

Britain has already hiked taxes on the rich to 50 percent but amid a weak economy and reports of wealth flight, the tax was ratcheted down in April to 45 percent.

http://www.cnbc.com/id/48825978

 

[377OHMS]

Quote from pspr:

As part of the global push to tax the rich, Britain is now debating an “emergency” wealth tax. But the idea has hit fierce opposition from conservatives, who say the “politics of envy” hasn’t made the country rich.

Deputy Prime Minster Nick Clegg, leader of the Liberal-Democrat Party, has proposed a one-time tax on the wealth (rather than the incomes) of high-net-worth Britons. The details aren’t clear, but Clegg says the country is facing an economic war caused by a prolonged recession, and needs to tax the rich in order to avoid social unrest.

He told the Guardian that unless the country “hardwired fairness” into the budget, “I don't think the process will be either socially or politically sustainable or acceptable."

Chancellor George Osborn shot back, saying the plan would chase out the rich and make the odds of full recovery even worse. Bernard Jenkin, the chair of the House of Commons' public administration committee, told the BBC that the tax could strangle the golden geese of Britain. “If the politics of envy made a country rich, we'd be very rich … Most rich people are contributing far more in tax than other people."

Britain has already hiked taxes on the rich to 50 percent but amid a weak economy and reports of wealth flight, the tax was ratcheted down in April to 45 percent.

http://www.cnbc.com/id/48825978

When I think about this trend I wonder what possible responses we might see.

Will creative and successful people respond by demanding deferred types of compensation and off-the-book perks like access to company properties, country club memberships, increased vacation time accrual, access to company vehicles etc? There might be a return to the widespread use of stock options as part of compensation packages if capital gains are treated more favorably than simple income.

Or will creative and successful people respond by demanding even larger salaries and compensation so that their employers are effectively paying their taxes? If a guy earns 250k per year maybe he'll simply demand 350k for the same position in order to compensate for the increased tax rates. The company might have to charge vastly increased fees for its goods or services to pay the increased salaries and there might be a type of wage inflation that effectively creates inflation on goods and services. People with businesses will likely pass these taxes onto the consumer as well.

 

[Lucrum]

"emergency wealth tax" eh? I suppose the idea of some emergency spending cuts never crossed their feeble little minds.

 

[Tsing Tao]

Happens like that in Moscow. Employees are routinely told what their salaries will be grossed up to. So if the job is advertised at 5000 a month, that number is the number you take home.

 

[pspr]

Quote from Lucrum:

"emergency wealth tax" eh? I suppose the idea of some emergency spending cuts never crossed their feeble little minds.

ROFLMAO

It would be like me upon seeing my finances didn't balance planning an emergency bank heist. Just one time, mind you.

 

[Martinghoul]

This is mostly about internal LibDem politics. The Tories (aka the Conservatives) aren't going to let this happen, or at least I hope so. The problem, of course, is that it can turn into a big stink that would endanger the coalition, with will in turn threaten the spending cuts. That's in nobody's interest, so there's a certain aspect of blackmail to this. Still, at this stage it's predominantly posturing.

 

[mrbill]

Well, I have to say that I hope this doesn't make it to the U.S. I really worked hard for my money, and I want to keep it. Pay taxes, sure, give it to the government just because I have more, no fucking way.

 

[Lucrum]

Quote from mrbill:

...I really worked hard for my money, and I want to keep it. Pay taxes, sure, give it to the government just because I have more, no fucking way.

Your messiah Odumbo never got that memo.