Quote Originally Posted by ragingpup View Post
So you think we should allow things to stay as they are? Effectively the wealthy and even the super wealthy effectively paying the same rate of tax, if not less, than the rest of us?

Fair enough - so that keeps the sustained existing pressure on public services and a big question for us who use the public services. Hence surely we will have to change the rates of tax if we are to improve services (appropriate for this week). Are you happy to pay more personally as you and I will surely have to do, whilst Chris and much wealthier even than he, continue to pay less than us?
My own view is that, rather than this being cloak and dagger, everyone should pay a flat rate of income tax, irrespective of earnings. That would pretty much wipe out avoidance and evasion at the upper income levels, and attract a lot of high net worth individuals into the country, bringing their money and their jobs with them. I believe this could be achieved at a flat income tax rate at, or lower than, the current basic rate.

There's quite a bit of research that shows that as you increase tax rates beyond about 45%, no additional revenue is forthcoming because of avoidance and satisficing behaviours. It would be interesting to see how the overall tax take changed if top rates were slashed. I know what I think would happen, but it's untested in an economy like ours as far as I know.