81–90 of 467 posts
Meanwhile my (single-person) company is paying around 20% corporation tax, and then I'm getting taxed a further 20-40% on top of that when I pay myself.
And they keep making it worse for small companies too!
We should stop all taxation and use inflation to pay for everything instead. Much simpler and no one can get out of it.
Meanwhile my (single-person) company is paying around 20% corporation tax, and then I'm getting taxed a further 20-40% on top of that when I pay myself.
Earlier quoted context omitted.
There you pay 40-50% incometax first
No one pays that much in a progressive tax system. Every time this discussion comes up people spout off these numbers but if you calculate out how much you actually pay it's probably in the 20-30% of total salary range. That's still high but it's just dishonest and makes people look like idiots when they throw around 40% etc. If you are truly paying 40% of your income in tax you are earning millions and are benefitin…
Earlier quoted context omitted.
The best tax is one that is imposed on an individual but paid at source by the corporation paying them. Individuals shouldn't see tax. That way the voters don't complain when you need to put it up. Sales tax is similarly a pain - particularly when you have differing rates. At which point we get into the famous is it a cake or a biscuit type cases to decide where the dividing line is.
>Individuals shouldn't see tax. That way the voters don't complain when you need to put it up. If taxation is such an inherent good then why does it need to be hidden from people? If the rate is justifiable the government shouldn't need to hide it. When you consider a democratic society where the government at least indirectly serves the will of the people the idea of the government needing to pull a fast one on the…
Because the externalities are not always visible, and people do not have enough free bandwidth to spend the time understanding them.
Why can't governments learn that taxing corporations is pointless? The same revenue is can be raised more simply through sales tax and personal income tax on salaries and distributions.
> taxing corporations is pointless the argument for taxing profits: - incentivise investments - companies are less likely to hide expenses like salaries - It's more fair for high cost business (car company vs google) Personally, I'd tax all corporation 3% of their revenue. You could lover it by to 2% by what is your operating profit ratio to revenue. You can lower it to 1% by a list of 20-30 deductibles e.g. you inst…
Earlier quoted context omitted.
No one pays that much in a progressive tax system. Every time this discussion comes up people spout off these numbers but if you calculate out how much you actually pay it's probably in the 20-30% of total salary range. That's still high but it's just dishonest and makes people look like idiots when they throw around 40% etc. If you are truly paying 40% of your income in tax you are earning millions and are benefitin…
They are surely talking about Europe. Not US.
Earlier quoted context omitted.
There you pay 40-50% incometax first
No one pays that much in a progressive tax system. Every time this discussion comes up people spout off these numbers but if you calculate out how much you actually pay it's probably in the 20-30% of total salary range. That's still high but it's just dishonest and makes people look like idiots when they throw around 40% etc. If you are truly paying 40% of your income in tax you are earning millions and are benefitin…
Earlier quoted context omitted.
You're right - but it depends how and when you pay yourself... a balance of salary and dividends, where dividends are not deductible. For me I may have a good year followed by a weak year, so I use last year's profit to keep me going!
If you're in the UK and still using dividends as a significant method to self-compensate, you may benefit from speaking to a (better) accountant. (Your circumstances may vary, this is not financial advice, YOLO, etc)
Let's say your company has £100K to play with and you want it all.
- You can pay yourself a £100K salary, of which take home pay will be about ~£67K
- You can pay yourself a £8,840 salary tax free in order to qualify for the state pension but minimize national insurance, and pay 19% corporation tax on the remaining £91,160, which leaves £73,839 to pay in dividends. Take home pay will be ~£69K. A win.
- Roughly (as this is more complicated). You can pay yourself a £48,840 salary, sacrificing £40K in to your pension completely tax free, pay corporation tax on the remaining ~£51K, and then pay it out as dividends. Take home will be about ~£47K with another £40K in your pension!
- More elaborate schemes are possible, where you use your personal pension to invest in commercial property which you then lease back to your company as a tax deductible expense.
Earlier quoted context omitted.
There you pay 40-50% incometax first
No one pays that much in a progressive tax system. Every time this discussion comes up people spout off these numbers but if you calculate out how much you actually pay it's probably in the 20-30% of total salary range. That's still high but it's just dishonest and makes people look like idiots when they throw around 40% etc. If you are truly paying 40% of your income in tax you are earning millions and are benefitin…