Taxes on earnings are taxes on wealth creation. The deferred income tax on your pension is a deferred tax on wealth creation. A tax on the appreciation of the value of your pension fund is a different thing but yes, it's not nearly as clear cut as a property tax.Another tax on work and wealth creation
(Pension pots are predominantly accumulated from earnings, as pension contributions funded from passive income don't qualify for tax relief.)
If that makes you happy then that's fine by me.I only misunderstood it because you didn't communicate it concisely, as evidenced by the fact that you later clarified it. And I did query it literally minutes after you posted it.
taking wealth from someone or some business through taxation and spending it on something else is wealth redistribution. There's nothing wrong with that.Well, you are determined to think that it is.
Ditto.If that makes you happy then that's fine by me.
All's well that ends wellDitto.
We're talking about creating wealth, not creating bicycles. If I'm currently keeping sheep on the best site in the world for creating bicycles....
If people increase their wealth through sacrifice (earning more than they spend) and use this excess to purchase a home or invest I apension they shouldn't be penalised with wealth taxes.Their wealth improves but if it improves through asset price inflation then they are not creating wealth. If it improves through working in the traded goods and services sector then they probably are creating real wealth in the economy. They are also not improving their wealth through their sacrifices, but rather due to the appreciation of existing assets. I'm in favour of taxes that encourage real wealth creation rather that taxes which penalise it. I'm not in favour of a greater net tax take but a shift away from taxing wealth creation and onto wealth retention.
Yes, people who improve their wealth through their sacrifices, in other words through their work, should not be punished. High taxes on labour do exactly that.
People who choose not to make sacrifices but simply own assets are currently rewarded by the hard work of others; their assets appreciate due to the economic activity of others but those hard workers are taxed up to the hilt. That doesn't seem fair to me.
I agree, and we penalise that hard work with income taxes and charges of over 50%. Reduce the income tax and introduce a wealth tax to balance things out.If people increase their wealth through sacrifice (earning more than they spend) and use this excess to purchase a home or invest I a pension they shouldn't be penalised with wealth taxes.
Acquiring them from their family is not a sacrifice.People acquire assets through sacrifice, they either earn income above their needs or they have acquired them from family.
Yes, but a sacrifice by someone else is not your sacrifice.Whether you accept it or not at some point these assets are a result of foregoing spending of income either by the owner of the asset or by the person who has given the asset.
Over 50% marginal income tax rates are more of a disincentive than a small wealth tax.High taxes do indeed punish labour but so too do wealth taxes. A wealth tax acts as a disincentive to better oneself and plan for the future.
Better themselves? That's a very broad definition of increasing your net wealth.One of the main reasons people better themselves is to enjoy a better standard of living as they get older.
The property tax above, compounded over 30 years is still well under 10% of the value of the property. Is that going to stop you buying the house? Is that going to mean you stop saving and investing?Imposing a punitive wealth tax (even a small yearly % figure) when compounded over the medium term can equate to a significant figure.
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