It’s difficult to insist that Britain doesn’t have a progressive taxation system when we get numbers like this. That some 87,000 Londoners paid more in income tax than the entirety of Wales and Scotland. Actually, it’s impossible to insist that we’ve not got a progressive income tax system when we’ve got numbers like this:
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””] In London, the picture is even more stark. The city has 4.2 million income tax payers, but just 87,000 individuals earning over £200,000 a year paid nearly half the £43.8bn income tax raised in the capital. It’s uncomfortable to say it, but if we lose all those absurdly paid investment bankers to Brexit, the hit to the public purse will be painful, as they are clearly paying vast amounts to the Treasury. Those London bankers, lawyers and their ilk paid more income tax in 2016-17 than the entire sum raised from every income tax payer in Scotland and Wales combined. [/perfectpullquote]As to whether the system is progressive enough, or too much such, that’s a different argument. It definitely is, isn’t it?
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Ah yes... Brexit.
‘...but if we lose all those absurdly paid investment bankers to Brexit...’
Two things.
1. It would reduce income inequality.
2. It would reduce inequality between taxpayers, all those less inequal people can pay more tax to make up the difference.
Winner!
Short of a Corbyn government, there's exactly zero chance that any of the 'masters of the universe' will migrate* to Paris (75% taxation) or Frankfurt (because, er, it's Frankfurt). If they do leave, it'll be for Manhattan or Singapore.
* maybe a small number of back office beancounting jobs, but they won't be on 7-figure salaries.
None of these people would leave once Corbyn turned the UK into Venezuela would they? Surely they'd stay to be fleeced for the wages of Tarquin and Jocasta in their cushy non-jobs. And to pay for the Taffs and Jocks to play politics.
One of the iron rules of taxation is that the other bloke never pays enough. Those 87 000 still have more disposable income than the rest so they ('Should' if your Jezza...) can be taxed even more. And besides, not all 87 000 people, and families, are going to depart the nice weather, warm beer and excellent transport of London. Their will be a critical mass left to rip-off!