Skip to main content

The Government Tax and the Wealthy

Another of Labour's misleading comments about tax relates to the government and tax cuts for the rich. It is true that the government cut the top rate of tax to 45% from 50%. It is worth noting, however, that it was only at 50% for one month of the Labour Government from 1997-2010. However, if you want to look at how fair policies are then you need to take into account more than just income tax.

Unusually this government has done "distributional analyses" for policies.  There is a distributional analysis that relates to the 2015 budget.  That can be found:

here

This chart from it looks at the effects from June 2010 through to March 2015 by expenditure decile.

I prefer the expenditure analysis to look at the spending power of households which in many ways is a better indication of economic power than the formal income. You should note from this that the top 10% (the richer households) are paying a lot more in terms of tax than those lower down the expenditure analysis. Chart 2D in the document (which I have not extracted) does the same calculation by income decile and comes with the same conclusion (the rich are paying more tax as a percentage of income - notwithstanding the change in headline rate).

Comments

Popular posts from this blog

Millionaires and politics

The Labour Party spent most of the last election criticising me for being a successful businessman (aka millionaire). That is business in the private sector employing over 250 people. It is worth looking at the situation for the Labour Candidate now:

For the year 2016-7 Annual Income from Parliament74,962Specifically for her book51,250Other media income etc5,322.82Total declared income131,534.82

Traditionally anyone with an annual income of over £100,000 has been considered to be a millionaire. I did not use my position in parliament to increase my income.


I have been asked for sources for this. This BBC piece looks at how one should define rich. It was written in 2011 so the figures will be slightly out of date. There are perhaps 2 relevant pieces:
"In 1880 a rich person would have had £100,000 in assets or an income of £10,000 a year, he says. About a hundred people a year died leaving £100,000 and by 1910 this was 250 - "a microscopic fraction of the number of death…

Gender Issues comparison of candidates

John Hemming believes that an MP should represent everyone in their constituency.  This should be regardless of their race, religion, gender, abledness, sexual orientation or anything else.  It should be everyone.

When he was an MP he worked on issues relating to men, those relating to women and those relating to non-binary people. Everyone.

For example here is John Hemming on a demonstration outside the courts with the campaign group Women Against Rape (it related to the case of a mother who had her child removed from her because the mother was raped).




Jess Phillips, who campaigns on women's issues, notwithstanding the questions asked about her appointments in her parliamentary office, had the following response when asked for a debate on issues specifically relating to men:

The Labour Candidate's Book Promotion Tour and Why It Matters

In the 2015 General Election the Labour Candidate criticised John Hemming for having an external interest and made a pledge that she would be a "Full Time MP for Yardley and my only other job will be mom & carer ...".  Here is a copy of that pledge:


Since that point she has been working on paid Television Programmes and has also written a book. John Hemming has made no secret of the fact that he chairs the board of the company he founded in 1983. This involves one meeting a month. When he was the MP for Yardley he was a full time MP and the Job of being MP for Yardley came first. The Labour candidate has reported 1,274 hours of work other than being an MP in the two years she has been elected and her income in the last year was over £131,000.

Ignoring the question as to how she reconciles that with her "pledge" the question is raised as to what extent her external activity conflicts with the role of Member of Parliament for Yardley. She is supposed to de…