Numbers to Ponder On.
As seems likely in the next budget there will will be some form of wealth tax therefore some figures that appeared in the press at the weekend are worth examining and hypothesizing on.
In 2024 10,800 millionaires left this country and a further 16,500 are projected to leave in 2025.
Now it is reasonable to assume that these are all people with an INCOME of, or in excess of£1million since having assets of £1million is not uncommon, most people with a house in band F or above are in, or close to, that bracket.
Now for the first £1million of income the PAYE tax revenue is £430,546's and for every £1million after that £450,000. Therefore in 2024 we lost £4.65billion in tax revenue and are projected to loose a further £7.104billion this year a combined total of £11.754billion.
Now a person on an average salary of £40K pays £5,486 in tax therefore to recover this lost revenue the government needs to create the equivalent of 2,142,527 jobs. At present the job vacancies stand at 781,000 and the number of unemployed is 1,610,000. so there aren't enough jobs and even if there were there aren't enough people to fill them.
These calculations ignore all the other taxes that these people pay, to whit VAT, Council Tax, NI on their employees and the PAYE that the employees pay.
As stated this is hypothesis but I would argue that they must be of the right order since I have based them on each millionaire only having an income of £1million and we know that there are some who pay in excess of£450 million IN TAX.
Surely these figures show clearly that wealth taxes are both stupid and counter productive.
In 2024 10,800 millionaires left this country and a further 16,500 are projected to leave in 2025.
Now it is reasonable to assume that these are all people with an INCOME of, or in excess of£1million since having assets of £1million is not uncommon, most people with a house in band F or above are in, or close to, that bracket.
Now for the first £1million of income the PAYE tax revenue is £430,546's and for every £1million after that £450,000. Therefore in 2024 we lost £4.65billion in tax revenue and are projected to loose a further £7.104billion this year a combined total of £11.754billion.
Now a person on an average salary of £40K pays £5,486 in tax therefore to recover this lost revenue the government needs to create the equivalent of 2,142,527 jobs. At present the job vacancies stand at 781,000 and the number of unemployed is 1,610,000. so there aren't enough jobs and even if there were there aren't enough people to fill them.
These calculations ignore all the other taxes that these people pay, to whit VAT, Council Tax, NI on their employees and the PAYE that the employees pay.
As stated this is hypothesis but I would argue that they must be of the right order since I have based them on each millionaire only having an income of £1million and we know that there are some who pay in excess of£450 million IN TAX.
Surely these figures show clearly that wealth taxes are both stupid and counter productive.
