So why isn't there a mass exodus to these countries?
For the record, I'd be happy to pay 36% tax if it meant I got access to the awesome social welfare system they have in Norway. If you watch that video I linked it says that, amongst other things, that the government there subsidises a two week holiday for all citizens. Can you imagine if anyone raised that in our parliament here? They'd never be taken seriously again!
And yeah the reason there isn't a mass exodus to these countries is for a lot of reasons. Government is rarely a deciding factor in choosing where to live, imo.
Now, she's bought that house. She's also left it in trust to my kids (2 so far). I grew up not spending, hell I'm still so tight I squeak when I walk. I have always lived on "if you don't have it in the bank, and it's not essential, you don't need it/spend it". I've only ever used my current account, currently sat at the 4.5k mark. Must do something about it..more to the ISA.
Missus is from a family of 6, also grew up with minimal money, hand me down everything, beans on toast meals etc.
I got the missus into saving - organised her first bank account (never had one before), ran her through the costs of things, got her round to my way of thinking. Then we moved out and started renting..that got more expensive, but we still saved as much as we could. Then we saw a house @ 115k, and the temptation to buy was high..mentioned it to my mother, who I still let manage my finances apart from the current acc.
"Go for it". I said don't be silly, I can't afford a mortgage..
"Ah. Yes. Right. Here's a statement of your finances, your ISAs, building societies, shares, fallback car fund. Here are the docs. You can afford it, I think you should go for it. "
We were able to put down a 35k deposit on the house, without breaking a sweat on the remaining savings. I now have 71k left to pay. We still scrimp and save, we stretch our money - end of life foods like pasta in bulk, animal feed in bulk from farms (SO cheap, I can recommend it.), ebay clothes /toys for the kids and us, cheapest prices I can find for anything. Missus is self employed ATM (approx 19k/year), but has just had 2 job offers in addition to that, one for 3 days a week, one for full week at 25-30k. I'm part time on 11.5k/year.
Kids are on part time nursery places to save costs, along with my part time meaning I take them in the PM. Time you can't get back, that no financial recompense can replace. I opted for the reduced hours and pay.
My place is an ex-council concrete wimpy, on a council estate. Most of the houses seem to be privately owned now. There are some families that are a PITA, and some kids who quite frankly should be shot - I had words with one who was hassling and abusing my elderly neighbour - he told me to fsck off. I told him to stop being a gobby sh1te and go do his homework. He said he'd "do my car", I said I'd laminate him to the road, and give him a count of 10 to start running. Also asked his name, which he gave me..then said I could also cheerfully report him to his school..as I used to go there and almost certainly knew his teachers.
You know, he's not been seen up our street since. He was apparently well known for hassling the older residents.
As I say, I feel amazingly lucky to be where I am now. My brother lives in Devon, huge house, Merc SLK, expensive tastes..in mums words "I close my eyes when doing his accounts, don't go there. ". I worry about him, but he's not stupid..
Then we look at the mother-in-law. Lovely person, yes. Signed off long term sick, missus who is also signed off medically. They are each others carers. Full motability for both, new car every 3 years, council 3 bed on the social tariff for everything, big TV, buys things like they're going out of fashion until she gets bored of them etc. She's as capable as me..no reason she couldn't have done at least a desk job. Doesn't save or plan, forever whinging about money.
She's offered to "help" me fill in a DLA claim so I can "get a motability car" - I've declined, and it's a mystery to her why. I'm disabled, but I'm not about to lie to exaggerate it.
Now Jems brothers/sister have grown up, they've all got jobs (at long last), but they're constantly amazed at her savings.."you've got loads of money, can I borrow a tenner?"..it's like educating pork sometimes. At least 1 has got it right - just heard he's working and saving like mad for a deposit. Fair play to the lad. Always thought he'd do OK. He always said "I'm able, so I'll do anything. Anything is better than sitting around like this."
We need more of that. He worked in a pound shop at first, then did callcentre work..not glamorous, not good hour wise..now he's just landed a job as a data analyst for something..far better pay.
Netman (25th October 2013)
However, I agree with the sentiments on here that we almost had it too good from the mid 90s to the mid 2000s. John Prescott's utter stupidity in announcing that 'we're all middle class now' was typical of that regime. What he and a fair proportion of the electorate failed to realise was that all they'd actually done was borrow lots of money of which gave themselves a false sense of financial well being. Even better was to follow with the arrival of cheap labour from Eastern Europe. This was a massive positive for the middle class and above because it meant they could pay less for services such as building, driving and other manual trades as well as unskilled labour. However, what they failed to realise was that this very much opened the flood gates for the ruthless financially oriented employment market. This has also filtered across to Education where Universities are now taking in the more affluent from other countries rather than British youngsters. Why shouldn't they? The precedent has been set so why should there be any discrimination against foreign students willing to pay for their education?
I'd be happy to pay 40%, maybe even a little more, if the entire tax system was overhauled and simplified, and we were seen to be getting our moneys worth out of key public services.
I’d say our tax system over here is complex and full of loop holes. I too fall in the make too much for full benefits, but not enough to make it on one income.
We are $17 trillion in debt and I get back more money on tax returns then I pay in.
If I’m not mistaken your VAT is similar to our sales tax. In place of a very complex tax code I’d like to see a tax code fit on one page.
A flat XX% sales tax. No income tax, no property tax etc. I think this is the fairest tax for all. If the rich want to spend $$ on shiny things they pay flat %. If I want to save my money I don’t pay.
Someone who works for cash to avoid income tax will now pay based on what they spend.
All the drug dealers who spend their ill-gotten gains on the latest things will now pay tax just like everyone else.
surely thats where a flat tax comes in. earn so much before youre taxed (with additions for kids up to say 3) then everything after that is taxed at x% same for everyone the more you earn the more you pay and much simpler
ADMaster was for a flat sales tax and eliminate income tax. Sales tax by it's nature varies with the amount of things being sold. IMO your suggestion - a progressive income tax is the only fair way. We just need to eliminate loopholes that allow people to avoid paying their fair share. That seems to involve (at least) two things, first ensuring that when people divert income into their company, live off expenses that they can't then avoid capital gains when they sell shares and take dividends and second ensuring companies are taxed fairly in the countries where they are generating income (so Amazon can't claim that their costs and profits continently occur in a low tax regime when they are creaming billions from customers in the UK).
Yes there may be fluctuation in tax revenue to begin with, but I think it would stabilize. Similar to how folks on all the benefits don’t have much incentive to work because they can make more money than someone with a low paying job. What is the incentive for someone to be a successful entrepreneur? That person progressively pays a higher tax rate based on how much profit they make. A low paid worker may pay 15% and a very high paid owner may pay 30%. In my opinion this is unfair.
Let’s say the low paid worker makes $10,000 @ 15% tax is $1,500
And the high paid owner makes $100,000 @ 30% tax is $30,000
If the owner paid just 15% too that would be $15,000
Still ten times more than the low paid worker, but the same rate. That is the nature of percentages.
Now the owner has an extra $15,000 he could hire a new worker, give the current workers a raise, reinvest in his shop etc.
A progressive income tax only punishes success.
The flat sales tax is aimed at individuals, I’m not sure how you would tax a business with this model, but I’m sure there is something out there better than all the loop holes we have now.
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