Tuesday, April 10, 2012
Shock Horrow- Rich people Fiddle Their Taxes
It always worries me sometimes how long it takes for widely known information to filter through to decision-makers. We've read all about fat-cat tax dodgers in the Eye, the Guaardian, even the Mail and the ST, yet our Chancellor was 'shocked' to discover so many of our wealthiest citizens paid little or in some cases no tax at all. Frankly I am shocked at his ignorance but glad that the awful truth has now hit home: wherever they live- USA, Far East, UK-rich people are very mean. Actually they are especially mean in UK where charitable giving by the richest 1% was exceeded by the same group in the USA ninefold. Osborne told the Tories daily broadsheet:
“I was shocked to see that some of the very wealthiest people in the country have organised their tax affairs, and to be fair it’s within the tax laws, so that they were regularly paying virtually no income tax. And I don’t think that’s right.
“I’m talking about people right at the top. I’m talking about people with incomes of many millions of pounds a year. The general principle is that people should pay income tax and that includes people with the highest incomes."
The Telegraph continued:
The report[by HMRC] found that Britain’s 20 biggest tax avoiders have used three main loopholes to legally reduce their their income tax bills by a total of £145 million in a year.
Two thirds of them wrote off business losses in one of their companies against their income tax bill, reducing it by as much as half .
Several of them offset the cost of business mortgages or borrowing on buy-to-let properties against their income tax bill, while others took advantage of relief on donations to charity.
Interestingly, the Torygraph's editorial found difficulty with swallowing George's determination to swat tax cheats down. While just about supporting a crackdown it warned the Chancellor, with i thought crocodile tears, that he would end up deterring philanthropists and urgiung that he 'should think again'. Oh dear, the Tories do so find it hard to admit they are so greedy and prepared to cheat to retain their unjustified swag like portions of the nation's wealth.
contact those champions of the PAYE system Bliar & Brown for the explanation.