I’ve seen a lot of people saying “if you tax the top 5% more they’ll just leave the country”. Putting aside for a moment the fact that working in other countries is about to become much more difficult for UK citizens and the fact that personal tax in the UK is lower than half the other countries in the G20 (The ten that are lower are Switzerland, Canada and the USA but also Mexico, India, South Korea, Indonesia, Brazil Turkey & Russia – Good luck finding rewarding work and a comfortable lifestyle in the latter seven) exactly how much do the 5% stand to lose?
Exactly what punitive strike to their standard of living is going to make them wipe out their entire life and start again in Switzerland?
Shall we have a look?
There are only approximately 550,000 people in our great nation of 65.14 million earning in excess of £80,000 a year so it is fair to say that they are paying a disproportionate amount of the £243 billion UK tax revenue but let us also remember that they are taking an even more disproportionate share of the $2,269 billion generated collectively by every worker in the country.
Of course to the Super Rich Labour’s tax proposals are just a drop in the ocean, but what about the poor hard working Head of HR at a Supermarket Chain on £100,000? Aren’t we in danger of forcing them to take their unique, nay irreplaceable skills out of the UK thus damaging our economy?
If you earn £100,000pa then, give or take depending on how canny you are at tax avoidance you will take home circa £65,530pa after tax and NI
That’s £1,260 per week.
Under the proposed Labour tax rises they will pay an extra £1,000pa in income tax (an extra 5% on all income over £80kpa. So that’s 5% of £20k = £1,000).
That’s £19.23 a week our HR Director will be short. Out of £1,260 a week.
That’s a cab fare home for them. That’s a round of drinks. When I earned £100k a year I could and frequently did lose £20 notes by leaving them in my jeans when washing them.
Are they really going to pull their kids out of school and go peddle their wares as experts in getting out of paying redundancy money in Indonesia?
£19.23. A week.
It’s nothing for someone on £100k per year. But what is an extra £19.23 for someone on minimum wage? That’s an extra three worked hours at their Zero Hours Contract Employer after tax and NI.
You know who should be taking their labour to places that have really low tax? People on rubbish wages, working long hours stacking shelves with little security and less prospects in order to line to pockets of an HR Director who approved the use of zero hour contracts.