Stanley Road
Renaissance Man
These percentages are only relevant if we know what % tax the rich are paying on their earnings. All well and good to say they contribute X % in tax collected but unlike joe soap, are they paying the right % tax on their earnings? The answer is no!well yes if you ask say the 10% who earn the lowest they will say they pay too much in tax and the other 90% should pay more
If you ask the bottom 30% you will find they say the same and the yop 70% should pay more
again ask people who are in the top 40% of earners and they will say they pay too much and it should be tose that earn more than them footing the bill
take it up to the top 10% of earners and they will say you should focus on the top 1% and they themselves pay too much
anyway some actual stats
the top 1% of earners in the uk make up 28% of the total income tax contributions
the top 10% of households pay a whapping 27% of the total tax take in the UK
no wonder (legal) tax avoidance schemes are so popular
So whilst you are correct the average person would say the rich should pay more lets keep in mind that at current rates we are still running a budget deficit and not even talking about tackling the nation debt and this same average person who says the rich should pay more probably thinks they should pay less and at the same time we shouldnt have a national debt / deficit yet they dont want spending cuts...
I think there is a valid argument for us all to pay more... but if the burden is ever shifted to the top few% also remember these are the few % with access to tip top legal and financial advice / vehicles and at a certain point it becomes more effective to just pay yourself in dividends or set up a company abroad and cintract through that - and in a world wide connected economy you cant stop things like that so there will be a natural limit as to how high taxes can be on the top 10%
interestingly if you go back to pre thatcher times you will see the rates were very different
what % of total tax take is reasonable for the top 10% to carry?
what level of income is it reasonable to start paying tax and what level should basic tax be?
what should be the maximum tax level we ever look to impose (e.g. is it reasonable to take 100% above a certain threshold - (personally i feel thats unethical... but how much is fair 40%, 50% 60% 90% etc)
and whilst there will be many different opinions as to what is right - its also about what is practical (enforcement, avoidence, people leaving the country or at least taking tax revenue away through offshoring etc) - and of course a government also has to win elections, retain business confidence and well frankly i think its a nit more complicated than most people think thise richer than them should pay more (that statement is true- but it in no way helps to resolve the issue - especially in an environment of deficits, debt and cuts)