Why I love those that scream about Taxing people more

[TheAnimus]

http://www.newstatesman.com/uk-polit...or-livingstone

So for some reason some people are supporting Ken Livingston for London mayor again, I've met the man twice, on both occasion I've considered him less consistent than a 555 multivibrator.

He was a very vocal person with the campaigns against firms paying only the minimum tax they legally had to, yet he is doing exactly that. I don't begin to criticise him for this. I have a UK LTD of my own, and pay myself mostly with dividends when I'm able. I'll be paying myself pretty much just enough money to keep my state pension going for the next two years as I go off round the world trying to see if I can pay for my travels indefinately whilst selling simple little Apps. Any windfall I have should I happen to make a successful one I'll obviously pay myself with via dividends, why the hell wouldn't I?!

I know there are many people on this forum that claim such behaviour is wrong, that were in favour of people launching sit ins, in Vodafone shops. To them I quote one of the comments on the article:

Ken Hall
07 March 2012 at 22:29
If you were to ask any self-respecting labour voter if they would vote for a racist, homophobic, tax-avoiding multi-millionaire, they would say, "Of course not!!!"

Yet they will loyally line up to vote for Ken Livingstone. A tax avoiding liar who has racially attacked jews, defended Islamic homophobia and is a multi-millionaire.

Do labour supporting voter's principles mean ANYTHING to them? Some of them would vote for Hitler if he wore a labour rosette.

This, many times over.

[roachcoach]

The country is losing the plot - people are content to see bad fiscal policy implemented so long as it 'hurts' the people they deem 'bad' or 'undeserving'.

There are examples of this all over the place recently, very people think of the big picture and far more attention is paid to sticking it to <current media/mob decided group of evil people>

[aidanjt]

And this is why tax law needs to be massively reformed and simplified. With all the loopholes which exist in the law now you could sail the titanic through it. But of course, politicians and their wealthy cronies benefit from complex tax law, so that probably wont happen.

As for the promise of a 5% pay cut in exchange for reelection? lol.. The first thing the current Irish President did upon entering office was to take a pay cut of 23%, nor was it a bribing point. Talk is cheap.

[scaryjim]

... should I happen to make a successful one I'll obviously pay myself with via dividends, why the hell wouldn't I?!

I know there are many people on this forum that claim such behaviour is wrong, ...

I have to admit that as a good little socialist I, personally, wouldn't take it in dividends, and nor did I when I was running a ltd - I paid myself a decent living wage, PAYEd those earnings, and took anything that was left over as dividends. But then, I - personally - believe in higher taxation for those that can afford it to benefit society as a whole (and to clarify -I don't actually thik my taxes are currently being used to benefit society as a whole, but that doesn't change the principle I work under). I definitely didn't pay as much tax as I would had I been receiving my contractual payments as earnings, but I definitely didn't pay as little tax as I could have: and I stress again, that was a personal choice.

All that said, I don't think there's anything wrong with using the tax planning regulations appropriately to pay the minimal amount of tax that you legally should, and if/when my friends ask me about such issues I explain to them (in as much detail as I am capable, whilst disclaimering that I'm not a trained accountant!) exactly how they work their income to ensure they pay as little tax as possible. One of the points of it being tax-beneficial to, for example, run a ltd company is that it encourages entrepeneurship, which can in turn help to boost the economy, and so benefit society in general.

The key word in the previous paragraph is, of course, legally - if the government wishes to make certain models of payment tax-beneficial, then use them. The problem comes with people reducing their tax burden either within the letter but against the spirit of the law (tax avoidance), or illegally (tax evasion). The former can only really be sorted by an overhaul of tax law to shut as many of those loopholes as possible - which would be costly and time-consuming. The latter will never be completely sorted, as you'll always get a group of people who consider themselves above such foolish inconsequences as taxation - something I find particularly frustrating...