I agree we need to change the tax system.
We may not agree that the income tax should be binned en-mass and replaced with progressive consumption tax.
Might still pay 50%, but only if you consume above average amounts: https://bsky.app/profile/avraam.bsky.social/post/3lcieb4lf6c2x
The rate of tax on capital gains is much lower than the rate on income. That means people have a massive incentive to try to magically convert their income into capital, and pay less tax.
The Beatles weren't particularly shy about stating their view about that 95% income tax rate - "there's one for you, nineteen for me": https://www.youtube.com/watch?v=gMdcE8jdz70
'One for you, 19 for US'
They neglected to mention they also benefited from where taxation is spent. Schools, hospitals, roads and transport, policing (which was particularly useful to them), etc. Hippies were always libertarians.
And they didn't just sing about it - they set up a company, and sold their music rights to the company. So instead of receiving royalty income (and paying 95% tax) they received a capital sum (and paid 30% tax).
We don't know the taxman's view of the song, but we definitely know his view of the tax trick. He stopped it, with the "Beatles clause". This says that, if you try to convert your earnings into capital, it gets taxed as income anyway.
Comments
We may not agree that the income tax should be binned en-mass and replaced with progressive consumption tax.
Might still pay 50%, but only if you consume above average amounts:
https://bsky.app/profile/avraam.bsky.social/post/3lcieb4lf6c2x
[in the 50s there was no capital gains tax at all - so the common claim the wealthy paid more tax in the 50s is hilariously wrong]
They neglected to mention they also benefited from where taxation is spent. Schools, hospitals, roads and transport, policing (which was particularly useful to them), etc. Hippies were always libertarians.
Poor Ron, though 😢