Too Much Tax?

One of the things in life that I have never had to worry too much about is that of being exceedingly rich. I have, towards the end of my full-time working life, found myself paying tax at 40% and this year I will pay a bit of capital gains tax. But on the whole, the highest tax rates have not concerned me in any way. Last week's imposition of a 50% rate on those earning more than £150,000 per year may be largely symbolic but it seems from newspaper reports that the very rich are not happy. They will, of course, be employing very skilled tax accountants to devise legal ways of avoiding the payments and probably will only pay a bit more than they do now. "It will drive all the innovators and entrepreneurs abroad," they tell us. "It is a tax on hard work and initiative." Is it? Michael Caine has got very excited about it and threatened to go off to the USA. What is he so worked up about? I assume that Sir Michael is relatively rich. He is 76 years old and still working because he enjoys his work. In that, good luck to him. But why is he bothered about the tax? Will he not have enough to live on? Does he feel the pain like other pensioners who have to exist on £95.00 per week - £4,940 per year; a sum that will not appear on the chancellor's chart for paying any tax at all? Calm down Michael, calm down. If things get really bad you can apply for supplementary benefits. After all, you have paid enough towards them during your working life.

It is suggested that footballers and their WAGs will pack up and leave. I will need some persuading of the truth of this. I know we will miss their entrepreneurial expertise if they did leave but in practical terms, how can they play for a Premier League club and live in Switzerland? I know that they could be paid in their "home" country via some fancy system designed to avoid tax due in Manchester or Liverpool but surely, even this government can find a means of stopping such a simple abuse?