Can I take you to task over the premise that proposed benefit cuts have to be ‘value for the tax payer’? This is a total misconception. People on benefits pay more in tax and profits pro rata of income than a high rate taxpayer! Tax is not the privilege of the worker either! Lots of workers earn below the threshold to pay income tax yet despite they work, they have something in common with the poor and those on benefits…. They all pay as much tax as they possibly can! Fact! So they self contribute to paying for themselves! Conversely, people who may pay income tax avoid paying tax on the major part of their income by NOT spending it all! By only spending some of their monthly money they contribute less per month in tax revenue as a percentage of income as those on benefits and low income. So ‘we the taxpayers’ is misused unwittingly by those who wrongly assume their tax contribution solely pays for benefits. When in fact it’s probably them who point the finger pay less in tax pro rata of their income than those they are pointing at and blaming! I’d like to educate those as they don’t see how our tax system works! Income tax is misunderstood and used by them as a reason that they pay for themselves benefit recipients when they don’t. Picture this, a homeless tramp beggar who has just spent his days earnings on as bottle of whisky and is now comatose on the village green intoxicated from downing that bottle. He or she has just paid over 73% in Vat dnd alcohol duty let alone contributed to profit for the retailer supplier and manufacturer! Thats more than a high rate tax payer! The fact is anyone who works it not on benefits or now those family’s stretched to the limit, all pay the must tax as they spend all their money each month. That’s the point! Those who spend all their money each month pay as much tax as they can! Conversely it’s those who don’t spend all their money each month pay the least pro rata of income! Why? Because tax is only triggered by money being spent and it money having to move. For example employers spending on employees or when we spend on goods and services Vat is triggered! When and where money is unspent and unused NO tax is triggered NONE!!!!! It is those who wag their finger at the least able and blame for the cost to the taxpayer! We are all taxpayers but some think they pay more and ironically they don’t! The monthly economy is devoid of money because so much money is not being spent in the same time frame and that’s why we are not making enough tax to fill the coffers of the exchequer! It’s that simple, not enough money is being put back in to he working pot via spending. Let’s look at income tax. It’s basically robbery! Money taken before the earner can enjoy spending it and as a result gets nothing in return for it either having something for it! If we make spending the way tax is triggered and most our money is not being spent why is it a surprise there is not enough tax revenue!? And so the government borrow from who? The same people who gave too much of it! So they get richer with interest and the poor get poorer! We need spending policy that gives everyone more each month to make a tsunami of flus and clocking up a tax revenue that overflows the coffers of the exchequer! Cutting is not the answer! So much money is out there in the ether it’s just not being spent back to renter the pot that revolves it to trigger tax take in an exponentially way that a wealth tax could not achieve as it’s only one tax take! Whereas a revolving amount via spending produces many many more tax revenues with all that inter spending! Honestly, had no one realised, we are not short of money that could be spent. We owe £2,800,000,000,000.00 trillion that’s out there somewhere! What do you think would result if that were to be spent every month!….perpetually!!! We would all be wealthy and we could afford proper benefits not less! We are not using all our money! We think we do but don’t. 95% of money is held by 5% of people. So if that’s correct 95% of people only have a working pot of just 5% of money! Thats not democratic! Be wealthy from stuff you buy not from holding the money itself!
Wealthy people don’t “hold money”, beyond a modest reserve to meet fluctuations in monthly outgoings. They invest it in the productive economy. And then get taxed on the income they derive from that investment. The idea that wealth, health and happiness can be delivered by spending 100% of our incomes is, bluntly, absurd. To the contrary, one of our problems as a country is that too high a proportion of incomes in aggregate is devoted to consumption rather than investment.
Hi Paul. Thanks for your reply. My point was more to do with answering the use of “we the taxpayer” by those who really don’t understand our tax system. As I say all people who spend all their income each month which used to be the poor but now they extends to most of the working classes mean they pay as much tax as they can. My point was that unspent money actually attracts no tax if it is unused. In the main it’s a criticism of our tax system and aimed at the mega rich who pay little tax into our pot. You may be happy in them not paying in but I’m not. The reason we are in deficit every month is our tax revenue isn’t enough. Now they can cut expenditure as much as they want but our needs are not being covered. That’s before they start paying back any debt! If they can’t see how the system works now, how on earth can they fix it? You may not spend all your money that’s fine yo be honest we all need rainy day money. But really can we accept the ratio if us at present? What is fair? I’m all for earning as much as you can. But I’m not up for all that money to be in effect hoarded for want of a better word. We all forget what money is? It’s an exchange of work. In the time frame we work. But honestly, I work harder than musk and I can run an exchequer better than Reeves! But should their income be many thousand times more? Not in my book. But then I am biased. No in reality a nurse is worth more than us all! The point is it’s become absurd! Your words. Investments are just spending! They should use spending instead of investments! Investments warrant a return but it’s never guaranteed. Spending is more precise and accurate. And we can’t grow an economy! It’s got a finite amount. So it’s impossible to grow it. All we can do is mean what we say… instead of grow say “ we need more tax revenue” that’s more accurate! I hope you agree. Money unused is useless to our tax system! So it’s the tax system that’s at fault. We only save as we think money won’t come round again. But if it were guaranteed we can be happy and enjoy it all the time and not just once in a while. Hope that helps you understand better. Your investments don’t necessarily mean profit and profit doesn’t necessarily mean tax revenue. Your investments may go bust if the economy continues in this ludicrous way.
Can I take you to task over the premise that proposed benefit cuts have to be ‘value for the tax payer’? This is a total misconception. People on benefits pay more in tax and profits pro rata of income than a high rate taxpayer! Tax is not the privilege of the worker either! Lots of workers earn below the threshold to pay income tax yet despite they work, they have something in common with the poor and those on benefits…. They all pay as much tax as they possibly can! Fact! So they self contribute to paying for themselves! Conversely, people who may pay income tax avoid paying tax on the major part of their income by NOT spending it all! By only spending some of their monthly money they contribute less per month in tax revenue as a percentage of income as those on benefits and low income. So ‘we the taxpayers’ is misused unwittingly by those who wrongly assume their tax contribution solely pays for benefits. When in fact it’s probably them who point the finger pay less in tax pro rata of their income than those they are pointing at and blaming! I’d like to educate those as they don’t see how our tax system works! Income tax is misunderstood and used by them as a reason that they pay for themselves benefit recipients when they don’t. Picture this, a homeless tramp beggar who has just spent his days earnings on as bottle of whisky and is now comatose on the village green intoxicated from downing that bottle. He or she has just paid over 73% in Vat dnd alcohol duty let alone contributed to profit for the retailer supplier and manufacturer! Thats more than a high rate tax payer! The fact is anyone who works it not on benefits or now those family’s stretched to the limit, all pay the must tax as they spend all their money each month. That’s the point! Those who spend all their money each month pay as much tax as they can! Conversely it’s those who don’t spend all their money each month pay the least pro rata of income! Why? Because tax is only triggered by money being spent and it money having to move. For example employers spending on employees or when we spend on goods and services Vat is triggered! When and where money is unspent and unused NO tax is triggered NONE!!!!! It is those who wag their finger at the least able and blame for the cost to the taxpayer! We are all taxpayers but some think they pay more and ironically they don’t! The monthly economy is devoid of money because so much money is not being spent in the same time frame and that’s why we are not making enough tax to fill the coffers of the exchequer! It’s that simple, not enough money is being put back in to he working pot via spending. Let’s look at income tax. It’s basically robbery! Money taken before the earner can enjoy spending it and as a result gets nothing in return for it either having something for it! If we make spending the way tax is triggered and most our money is not being spent why is it a surprise there is not enough tax revenue!? And so the government borrow from who? The same people who gave too much of it! So they get richer with interest and the poor get poorer! We need spending policy that gives everyone more each month to make a tsunami of flus and clocking up a tax revenue that overflows the coffers of the exchequer! Cutting is not the answer! So much money is out there in the ether it’s just not being spent back to renter the pot that revolves it to trigger tax take in an exponentially way that a wealth tax could not achieve as it’s only one tax take! Whereas a revolving amount via spending produces many many more tax revenues with all that inter spending! Honestly, had no one realised, we are not short of money that could be spent. We owe £2,800,000,000,000.00 trillion that’s out there somewhere! What do you think would result if that were to be spent every month!….perpetually!!! We would all be wealthy and we could afford proper benefits not less! We are not using all our money! We think we do but don’t. 95% of money is held by 5% of people. So if that’s correct 95% of people only have a working pot of just 5% of money! Thats not democratic! Be wealthy from stuff you buy not from holding the money itself!
Wealthy people don’t “hold money”, beyond a modest reserve to meet fluctuations in monthly outgoings. They invest it in the productive economy. And then get taxed on the income they derive from that investment. The idea that wealth, health and happiness can be delivered by spending 100% of our incomes is, bluntly, absurd. To the contrary, one of our problems as a country is that too high a proportion of incomes in aggregate is devoted to consumption rather than investment.
Hi Paul. Thanks for your reply. My point was more to do with answering the use of “we the taxpayer” by those who really don’t understand our tax system. As I say all people who spend all their income each month which used to be the poor but now they extends to most of the working classes mean they pay as much tax as they can. My point was that unspent money actually attracts no tax if it is unused. In the main it’s a criticism of our tax system and aimed at the mega rich who pay little tax into our pot. You may be happy in them not paying in but I’m not. The reason we are in deficit every month is our tax revenue isn’t enough. Now they can cut expenditure as much as they want but our needs are not being covered. That’s before they start paying back any debt! If they can’t see how the system works now, how on earth can they fix it? You may not spend all your money that’s fine yo be honest we all need rainy day money. But really can we accept the ratio if us at present? What is fair? I’m all for earning as much as you can. But I’m not up for all that money to be in effect hoarded for want of a better word. We all forget what money is? It’s an exchange of work. In the time frame we work. But honestly, I work harder than musk and I can run an exchequer better than Reeves! But should their income be many thousand times more? Not in my book. But then I am biased. No in reality a nurse is worth more than us all! The point is it’s become absurd! Your words. Investments are just spending! They should use spending instead of investments! Investments warrant a return but it’s never guaranteed. Spending is more precise and accurate. And we can’t grow an economy! It’s got a finite amount. So it’s impossible to grow it. All we can do is mean what we say… instead of grow say “ we need more tax revenue” that’s more accurate! I hope you agree. Money unused is useless to our tax system! So it’s the tax system that’s at fault. We only save as we think money won’t come round again. But if it were guaranteed we can be happy and enjoy it all the time and not just once in a while. Hope that helps you understand better. Your investments don’t necessarily mean profit and profit doesn’t necessarily mean tax revenue. Your investments may go bust if the economy continues in this ludicrous way.