That’s just not how it works. It’s income above that threshold that is taxed at the new rate. And Scotland have deviated for a year already and haven’t seen any exoduses, only extra money
I think he’s talking about how rich people are valuable on paper but they’re typically not very liquid at any given time. Like how Musk or Bezos don’t actually have bank accounts with hundreds of billions of dollars in them; they just take out loans against their asset portfolio when they need something.
Unless this hits them hard in capital gains, you aren’t doing anything but taxing workers; and even then I don’t think these loans count as income.
Top earners get 75k, because people earning more than that are rarely paid in a fixed wage.
They get stock options, stuff gets moved to an off-shore company, you start a company that pays you out a dividend under the threshold, any income paid out gets spread between partners, etc.
Until the Scottish government tackles large land owners, capital, and loopholes this is partly(!!!) performative. Something’s better than nothing though.
I think you simply didn’t understand me. I’m talking about tax dodging by wealthy people. If you think this plan doesn’t already have convenient loopholes, then I’m afraid you are naíve to think wealthy people are simply going to pay up.
I have fair bit of insight into the UK tax world through CA circles. In fact, if you like reading, I would recommend a book called “Taxtopia” that was just recently published. That might serve as a good introduction.
Your run of the mill wealthy person doesn’t “earn high income” on paper. Expect a lot of people suddenly earning 69999 next tax cycle
That’s just not how it works. It’s income above that threshold that is taxed at the new rate. And Scotland have deviated for a year already and haven’t seen any exoduses, only extra money
I think he’s talking about how rich people are valuable on paper but they’re typically not very liquid at any given time. Like how Musk or Bezos don’t actually have bank accounts with hundreds of billions of dollars in them; they just take out loans against their asset portfolio when they need something.
Unless this hits them hard in capital gains, you aren’t doing anything but taxing workers; and even then I don’t think these loans count as income.
EDIT: top earners get £75k? wut?
Top earners get 75k, because people earning more than that are rarely paid in a fixed wage.
They get stock options, stuff gets moved to an off-shore company, you start a company that pays you out a dividend under the threshold, any income paid out gets spread between partners, etc.
Until the Scottish government tackles large land owners, capital, and loopholes this is partly(!!!) performative. Something’s better than nothing though.
I think you simply didn’t understand me. I’m talking about tax dodging by wealthy people. If you think this plan doesn’t already have convenient loopholes, then I’m afraid you are naíve to think wealthy people are simply going to pay up.
I have fair bit of insight into the UK tax world through CA circles. In fact, if you like reading, I would recommend a book called “Taxtopia” that was just recently published. That might serve as a good introduction.
This isn’t designed to close loopholes, indeed the Scottish Government cannot tackle these
Look up how tax bands work mate.
https://www.theguardian.com/money/2012/apr/24/how-avoid-paying-tax-maximise-income