UK capital gains taxed at 10%-28% rate; Dividends at 8.75% - 39.35%. No NIC levied. Wages at 20% - 45% rates + NIC. Taxing wealth at lower rates is unfair. By aligning taxation of dividends & capital gains with wages & charging NIC, govt can collect up to £20bn. No case for austerity. - ThreadSky

premnsikka.bsky.social • 73 days ago

UK capital gains taxed at 10%-28% rate; Dividends at 8.75% - 39.35%. No NIC levied.
Wages at 20% - 45% rates + NIC.

Taxing wealth at lower rates is unfair.

By aligning taxation of dividends & capital gains with wages & charging NIC, govt can collect up to £20bn.

No case for austerity.

Comments

man-the-barricades.bsky.social•73 days ago

Are the only one that sees this?

If so many are seeing it, why isn't the government unless there is a clear agenda to either protect the wealthy and/or punish everyone else.

premnsikka.bsky.social•73 days ago

Please see the linked article for further examples (not a comprehensive list) of UK tax anomalies, which if addressed can raise billions more.

man-the-barricades.bsky.social•73 days ago

I will, it was a leading question because I *know* of more well worked out of examples of how they could raise more cash more equitably vs this broad attack on the vulnerable in society.

fractious-punk.bsky.social•73 days ago

Do you think it would work if the rule was that if you have any income from anything other than PAYE, you have to do a tax return, then all income from all sources is lumped together, and the standard income tax bands are applied? So all income is taxed equally?

elgatothe43rd.bsky.social•73 days ago

I think you may share some common ground. https://bsky.app/profile/richardjmurphy.bsky.social/post/3lk3j3uxbbk2t

tooting-pop-front.bsky.social•73 days ago

What I hate about this whole argument is it starts with the premise that taxation is bad. If you want a fair society with good services then you need taxation.

tooting-pop-front.bsky.social•73 days ago

Wealth tax works ok in France

paulclark42.bsky.social•73 days ago

I used to be a company director. Our accountant persuaded me to take dividends instead of a salary and I was shocked by how little tax I ended up paying. My hourly rate was only ever 2.3 times what the lowest paid staff earned but even so, I ended up paying hardly any tax at all.

pwrussell.bsky.social•73 days ago

Yes, but why do that when you can take money out of disabled people’s pockets instead?

jm64.bsky.social•73 days ago

Everything and everyone should be on the same rates and the same thresholds. It’s one of the reasons why there’s such disparity between rich and poor. It’s why the elderly are getting the grubbiest pension in Europe. The upper tax rate is far too low. The politicians are ok though so there’s that.

premnsikka.bsky.social•73 days ago

Income whether from wages, capital gains or dividends has the same purchasing power, and must be taxed at the same rate.
Over the years, govts have privileged wealth. The return on wealth is taxed at a lower rate than labour. This is discriminatory and unfair.

katrinabryce.bsky.social•73 days ago

The argument for having dividends taxed at a lower rate than wages is that wages is an allowable expense in the company's own tax return whereas dividends is not. But once your factor in National Insurance, dividends still result in a lower tax take overall.

katrinabryce.bsky.social•73 days ago

If I was Chancellor, one of the first things I would do is have the same rules for taxing both interest and dividends, ie reverse the changes that Gordon Brown made to dividend tax. That would stop a lot of the shenanigans that Private Equity gets up to.

jm64.bsky.social•73 days ago

Completely agree. Any property other than primary residence should be treated as income and subject to the same tax rules. Any income generated should be taxed at a higher rate. Multiple properties should attract multiples of council tax. One extra property double tax, third tripled and so on. Greed

thinkitthrough.bsky.social•73 days ago

No case for austerity.

TAX THE WEALTHY!

✔️

joseph-yossarian.bsky.social•73 days ago

Capital gains is a fair point, but dividends have already had corporation tax levied on them so you should add this in too. Then you will find that dividends are highly taxed.

tooting-pop-front.bsky.social•73 days ago

Isn't that a conflation of two different things, tax the company pays and income tax.

joseph-yossarian.bsky.social•73 days ago

As a shareholder you have partial
Ownership of the company

tooting-pop-front.bsky.social•73 days ago

I don't understand how that supports your argument?

joseph-yossarian.bsky.social•73 days ago

Very simple I own the company I pay corporation tax on its profits and then I pay tax on any dividends I take out from those after tax profits.

So it’s a double tax

joseph-yossarian.bsky.social•73 days ago

That is why dividend tax is set where it is. Because the alternative is to take the money out as salary pre-tax and pay income tax.

tooting-pop-front.bsky.social•73 days ago

But they are two separate issues, the dividends are income for you and should be taxed as income. Why not take a bigger salary thus reducing profits and cooperation tax?

iangrant25.bsky.social•72 days ago

📌

honestdrjohn.bsky.social•73 days ago

Wages are tax's more than that.
I know you'd have no sympathy for those on (approx) £100-125k, but (because their personal allowance drops) their marginal top rate is over 60%.
More than those over £125k.

honestdrjohn.bsky.social•73 days ago

*taxed

robstewartwriterq.bsky.social•73 days ago

Yes!!

glostermeteor.bsky.social•73 days ago

This didnt actually used to be the case. It was actually the Tories who RAISED Capital Gains to bring it in line with top rate of income tax. It was Labour in their ultimate stupidity under Gordon Brown who lowered it to 18%. It was then subsequently raised by the Tories again under Osborne.

listeningmainly.bsky.social•73 days ago

Any idea why Brown lowered CGT?

glostermeteor.bsky.social•73 days ago

So there is a theory that if you lower CGT it encourages a glut of people selling their assets to take advantage of the new rate. It creates a short term spike in tax receipts. Longer term though it doesnt last, and then creates big distortions in the economy.

listeningmainly.bsky.social•73 days ago

Thanks for info

glostermeteor.bsky.social•73 days ago

Brown probably did it because he was desperate for cash.

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