Britain INCREASES tax on ebooks

[Iphinome]

Originally Posted by GeoffC

In my scenario I am assuming that after 2 years, I would sell ... capital gain losses are (as far as I understand it in the UK) not tax deductible, for me as an individual.

In the US you can deduct losses I'm afraid local tax laws are the only ones i have any familiarity with but be that as it may do you understand my point about taxing unearned income?

[omk3]

There are some camps of economists that claim that the most fair taxation system would be VAT only - no income tax or anything else, as the income is demonstrated in your consumption. It is an interesting idea, though I'm not sure if I agree.

Emotionally, I tend to say, why not tax heavily the huge incomes, and leave most of the people who are struggling alone? But that, as Geoff said, encourages cheating. It encourages people with money to take their money elsewhere. Hiding it completely, or letting more friendly governments take advantage of them. That's one of the (many) problems Greece is facing right now. People with money just take it and run. Leaving the rest to pay for everything, whether they can or not.

[murraypaul]

Originally Posted by omk3

There are some camps of economists that claim that the most fair taxation system would be VAT only - no income tax or anything else, as the income is demonstrated in your consumption. It is an interesting idea, though I'm not sure if I agree.

I don't.
You have to eat and buy clothes, no matter how little you earn.
This would hit low-income families proportionality much harder than the current system.

[GeoffC]

Originally Posted by Iphinome

In the US you can deduct losses I'm afraid local tax laws are the only ones i have any familiarity with but be that as it may do you understand my point about taxing unearned income?

I do understand that point.

It seems I am also incorrect in my comment about not being able to claim losses ....

or at least partly incorrect - though in order to make up for losses, they have to be offset against the gains...

[omk3]

Originally Posted by murraypaul

I don't.
You have to eat and buy clothes, no matter how little you earn.
This would hit low-income families proportionality much harder than the current system.

I know, that's my objection too. But if it went with fair prices, where essential goods are kept cheap, it would maybe make sense.

[Iphinome]

Originally Posted by murraypaul

I don't.
You have to eat and buy clothes, no matter how little you earn.
This would hit low-income families proportionality much harder than the current system.

That would be a regressive tax, where the people who earn the least pay a greater percentage than people who earn the most. of course those people are probably also more likely to directly benefit from government spending especially the spending for social programs and the higher income people still might pay more total money even if its a lower percentage.

I'm not a fan of that system though. If you imagine for a moment you're about to be reincarnated, you have no idea what kind of situation you'll be born into, how much money you'll be able to gain when you grow up. Now choose the tax system. A higher income person won't go hungry with a greater tax burden and the taxes won't reduce what they have to less than someone who earns less and pays less taxes. It is not fair but it beats the hell out of a peasant revolt.

Wow, got more than a little off topic, sorry.

[mr ploppy]

Originally Posted by omk3

Emotionally, I tend to say, why not tax heavily the huge incomes, and leave most of the people who are struggling alone? But that, as Geoff said, encourages cheating. It encourages people with money to take their money elsewhere. Hiding it completely, or letting more friendly governments take advantage of them. That's one of the (many) problems Greece is facing right now. People with money just take it and run. Leaving the rest to pay for everything, whether they can or not.

There is also a lot more poor people than there is rich people. The poor generally don't tend to vote (or at least not vote Conservative), and nobody who does vote for them cares what happens to the poor anyway. In fact the sort of people who are likely to vote Conservative will be more than happy that the poor, disabled, and single parents are going to bear the brunt of the mess that the rich have made.

[GeoffC]

Originally Posted by mr ploppy

There is also a lot more poor people than there is rich people. The poor generally don't tend to vote (or at least not vote Conservative), and nobody who does vote for them cares what happens to the poor anyway. In fact the sort of people who are likely to vote Conservative will be more than happy that the poor, disabled, and single parents are going to bear the brunt of the mess that the rich have made.

that's a bit of a generalisation ....

[TimMason]

You have to eat and buy clothes, no matter how little you earn.

Eat the rich.

[GeoffC]

Originally Posted by TimMason

Eat the rich.

are they tasty ?

[TimMason]

Depends on whether they are free-range or battery-farmed

[deltop]

Originally Posted by mr ploppy

There is also a lot more poor people than there is rich people. The poor generally don't tend to vote (or at least not vote Conservative), and nobody who does vote for them cares what happens to the poor anyway. In fact the sort of people who are likely to vote Conservative will be more than happy that the poor, disabled, and single parents are going to bear the brunt of the mess that the rich have made.

Originally Posted by GeoffC

that's a bit of a generalisation ....

Yes it was, and a rather insulting one too. I voted Conservative this time and I certainly don't conform to that very limited and I have to say rather bigotted interpretation of Conservative voters. Both my wife and I have both had personal experience of what it's like living on the breadline and of being single parents too. I know fine well I'm going to be hit hard due to this and probably any follow up budgets, but I'm willing to accept that.

But anyway, VAT on ebooks? If your that bothered just buy abroad it's pretty easy to by-pass those pesky regional restrictions

[GeoffC]

Originally Posted by deltop

Yes it was, and a rather insulting one too. I voted Conservative this time and I certainly don't conform to that very limited and I have to say rather bigotted interpretation of Conservative voters. Both my wife and I have both had personal experience of what it's like living on the breadline and of being single parents too. I know fine well I'm going to be hit hard due to this and probably any follow up budgets, but I'm willing to accept that.

But anyway, VAT on ebooks? If your that bothered just buy abroad it's pretty easy to by-pass those pesky regional restrictions

yep - especially if they are not drm'ed ....

[mr ploppy]

Originally Posted by deltop

Yes it was, and a rather insulting one too. I voted Conservative this time and I certainly don't conform to that very limited and I have to say rather bigotted interpretation of Conservative voters. Both my wife and I have both had personal experience of what it's like living on the breadline and of being single parents too. I know fine well I'm going to be hit hard due to this and probably any follow up budgets, but I'm willing to accept that.

The odd exception doesn't disprove a rule. I doubt there will be many Conservative voters complaining when they start kicking financial crutches away from the poor and disabled.

[GeoffC]

Originally Posted by mr ploppy

The odd exception doesn't disprove a rule. I doubt there will be many Conservative voters complaining when they start kicking financial crutches away from the poor and disabled.

:stickshandup: as one of the poor and the disabled ....