Politics in General

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Paul Worsley
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Re: Politics in General

Post by Paul Worsley » Tue Dec 03, 2019 12:34 am

Jon O'Neill wrote:
Sun Nov 24, 2019 11:06 pm
None of this is to say that I accept the original premise, that higher tax kills aspiration. People are motivated by more than just cash.
Just out of interest, how did you come up with 75%? If punitive tax doesn't kill aspiration why stop there? Why not 85% or 95% or even 100%?

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Jon O'Neill
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Re: Politics in General

Post by Jon O'Neill » Tue Dec 03, 2019 8:53 am

75% was a nice round number that took the overall picture into "profit" vs. the status quo.

With a high non-100% number there is still a financial reward for increasing income. At 100% this is not the case. Between 0% and 100% it's a sliding scale of how much financial reward you get. Apparently it's painstakingly obvious to everyone else that the aspiration-death tipping-point is somewhere between 40% (aspiration alive and well) and 75% (aspiration would be dead). For me it's nowhere near as clear.

In theory you could quite easily come up with a logarithmic function that never reaches 100% tax, so there's always a financial incentive for the absolute mercenaries.

Conor
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Re: Politics in General

Post by Conor » Tue Dec 03, 2019 11:01 am

I don't think 75% is such a crazy marginal tax rate, but 50k is too early for it to kick in - in some places it's barely above the median income. The £20,000 threshold from the 70s translates into around £150k today. And while people do respond to more than financial incentive, they are disproportionately disincentivized by feeling unfairly treated.

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Marc Meakin
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Re: Politics in General

Post by Marc Meakin » Tue Dec 03, 2019 12:02 pm

If Amazon ,Starbucks etc paid all the tax that they morally should , then maybe we don't need to tax the wealthy so much...maybe 49%
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