Proof that Balls doesn't know what he is on about

[IC1967]

Balls wants a top tax rate of 50% to appeal to the working class that think the rich aren't paying enough tax. He knows he is being disingenuous and is putting short term gain against the best interests of the economy.

Figures from HM Revenue and Customs that show a £9bn increase in tax receipts this year - after the top rate was cut to 45%. What a plonker.

http://www.bbc.co.uk/news/uk-politics-26875420

[Glyn_Wigley]

It'd be more believable if they just quoted income tax figures to back up their argument, but for some reason they want to lump in every tax in that collection figure they're trumpeting. I wonder why..?

[BillyStubbsTears]

It's true that the tax receipts from the top rate HAVE gone up this year. That was an utterly predictable event. It has come about primarily because there has been a surge in dividend payments declared as tax by the highest rate tax payers. That follows a big drop in dividend payments last year.

Doesn't really take a genius to figure it out.

2011/12, Osborne announces that he will cut the top rate in 2013/14

2012/13, the top rate is still 50%. Top rate tax payers who own their own businesses and pay themselves through dividends defer those payments, so they don't have to pay 50% tax on them.

2013/14, the top rate is cut to 45%. Top rate tax payers who deferred their dividends in 12/13 now make those payments to themselves and pay only 45% tax on the income.

It is a one-off boost, following a one-off dip last year. It means nothing whatsoever in terms of whether cutting top tax rates actually substantively leads to a structural increase in tax income. It doesn't. But right-wing ideologues like John Redwood (who has been all over the media making this claim) will always claim it does, despite the welter of historical evidence to the contrary. And useful idiots like Mick will always parrot the same information, untainted by any passage through their own neurons.

[IC1967]

£9bn. Game set and match.

[IC1967]

There is a great example on our doorstep of what goes wrong when you have a leftie socialist in power that believes in over taxing the rich. It's called France.

I think Billy and Mr Wigley should move there as the way the country is run seems to be more in keeping with their world view.

http://www.telegraph.co.uk/finance/10390571/france-hollande-taxes-socialist-farrage.html