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Corbyn suggests earnings limit

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That's a horrible situation and you have my fullest sympathy. And yes in some of those poor countries I mentioned they probably encounter that situation more than we do, but that's because we have the NHS which I accept is funded by money from taxes from wages and company profits. But if you put a cap on earnings then doctors and nurses would be paid less too so the relative costs of the NHS would fall and therefore would need less tax to pay for it. Simplistic I know, and doesn't take into account the cost of drugs from outside the UK etc.

 

As I said, I love the idea but I love the idea of absolute full socialism as well where there is not money at all, but I can't see either as being realistic unless we find a way to reboot humanity and start over again.

 

I'm fairly sure that if a corby could earn his juicy 6 figure slay without breaching the cap, nurses and doctors would also be fine earning what they do.

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I don't think the cap that Corbyn proposes would be anywhere near the level to affect workers in the NHS. When questioned on what the cap would be he couldn't name a figure, but said footballers shouldn't be paid £50million a year.

 

He said it would be in excess of his salary of £140,000 a year or so, which would rule out the vast majority of people working for the NHS.

 

He probably has in mind something like in excess of £1million a year or so - so way beyond what anybody earns in the NHS.

 

Ah apologies, for some reason I managed to get the massively wrong end of stick there...

 

Unless we ditch capitalism which I'm all for by the way (in theory only...I don't actually want to have to live through the painful transition) then the market defines the wages as rubbish as this is. Clearly footballers don't 'earn' £50m a year but then I don't 'earn' my salary either and probably neither do many of us, but we are paid as by market forces so the rarer the skill or the more profit making the job then higher the salary.

 

There's been many an algorithm showing income tax vs actual tax takings so if the aim is to get more taxes from the rich then this needs looking at careful, but if the aim is simply to make a point and hurt them financially then go for it but that's a dangerous and pointless game to play.

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There's been many an algorithm showing income tax vs actual tax takings so if the aim is to get more taxes from the rich then this needs looking at careful, but if the aim is simply to make a point and hurt them financially then go for it but that's a dangerous and pointless game to play.

 

The top rate of income tax is already above the peak of the Laffer curve.

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Bring back the higher tax rates.

 

What spending would you cut when tax revenue goes down as a result?

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I don't know the exact details of Jeremy Corbyn's speech, however as someone who has worked in the public sector for many years previous, I've seen the creation of so many 'jobs' at the top of these organisations by people paid an absolute fortune ( in public bodies like Executives of Councils, Hospitals, Colleges). So many people working on the front line of these services are facing redundancies, wage freezes - yet this doesn't apply to those in senior positions.

 

Unfortunately I only have anecdotal evidence, rather than hard facts. But it would be very interesting to find out the composition of these organisations in terms of their workforce, their salaries, and where the axe falls.

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Bring back the higher tax rates.

 

To achieve what? If it's to get more tax then you'll need to look very carefully at how best to do that as it's diminishing returns. If it's simply to make a point then go ahead but you might end up reducing tax returns which I don't think benefits anyone.

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It just so deluded and unworkable it's laughable.

 

I read an article the other day that said that Lord Sugar paid himself £181 million in dividends last year (before the rise in tax on dividends). He still paid around £40 million in tax from that sale.

 

What is Corbyn proposing? If he isn't included things like income from dividends from his cap then it is absolutely pointless, as that is how the super wealthy pay themselves - very few people actually have a salary in excess of £1million say, and anyway if they did, they'd just make sure they they were paid in dividends (or some other method) in the future.

 

If Corbyn is including dividends, then he must be willing to let the country lose a hell of a lot of money in tax revenue. Alan Sugar wouldn't have paid the £40million he did for example.

 

How can a man who clearly has no idea about how the economy works be in charge of the opposition.

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I don't know the exact details of Jeremy Corbyn's speech, however as someone who has worked in the public sector for many years previous, I've seen the creation of so many 'jobs' at the top of these organisations by people paid an absolute fortune ( in public bodies like Executives of Councils, Hospitals, Colleges). So many people working on the front line of these services are facing redundancies, wage freezes - yet this doesn't apply to those in senior positions.

 

Unfortunately I only have anecdotal evidence, rather than hard facts. But it would be very interesting to find out the composition of these organisations in terms of their workforce, their salaries, and where the axe falls.

 

This is what happens when government throw money at the state sector rather than reforming it. It's why Labour keep getting kicked out of government.

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Bring back the higher tax rates.

 

What? Why?

 

You realise that when Labour increased the top rate of tax to 50% the total amount of tax revenue fell.

 

It was only when the Conservatives cut it again that tax revenue increased again. Indeed now the wealthiest in this country are paying a higher percentage of the total tax revenue than ever before.

 

http://blogs.spectator.co.uk/2015/04/george-osborne-has-squeezed-more-from-the-rich-than-any-uk-chancellor-ever/

 

http://www.telegraph.co.uk/finance/personalfinance/tax/10368203/Top-earners-to-pay-third-of-all-income-tax-despite-rate-cut.html

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To achieve what? If it's to get more tax then you'll need to look very carefully at how best to do that as it's diminishing returns. If it's simply to make a point then go ahead but you might end up reducing tax returns which I don't think benefits anyone.

 

There has been much made of the costs of a widely unequal society - both the social and economic costs. I think they should be considered as well.

It is said to impact on issues like social mobility, educational outcomes, criminality, economic growth and health. Even the OECD last year pointed out the impact of inequality on Growth stating that:

 

"....the UK economy would have been more than 20% bigger had the gap between rich and poor not widened since the 1980s".

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There has been much made of the costs of a widely unequal society - both the social and economic costs. I think they should be considered as well.

It is said to impact on issues like social mobility, educational outcomes, criminality, economic growth and health. Even the OECD last year pointed out the impact of inequality on Growth stating that:

 

"....the UK economy would have been more than 20% bigger had the gap between rich and poor not widened since the 1980s".

 

Can we have a reference for this quote please? I'm pretty sure it's false.

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