The UK tax system is a con | Economics | New Statesman

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Published 2023-09-13
A tax system that allows millionaire Rishi Sunak to pay a lower tax rate than working people is in dire need of reform, says Harry Lambert.

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“If everyone in the country understood how the tax code worked, it wouldn't last very long.” - Harry Lambert

Did you know that the burden of council tax is about ten times as heavy in poorer areas as in richer ones? Did you know that Rishi Sunak’s effective tax rate was 23% last year, which is lower than the tax rate you pay if you earn £37,000 in income?

Harry Lambert speaks to Freddie Hayward about his cover story for the New Statesman and explains how the UK’s tax system entrenches inequality, stymies growth, and rewards a few at the expense of the many.

Read the piece here: www.newstatesman.com/politics/economy/2023/08/brit…



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All Comments (21)
  • @isoconfused8744
    I plan on leaving the UK after living here 42 years. I have had enough of this countries rule, government and the whole lot!
  • @Squinge123456789
    I would argue that this tax system is one of the reasons we have low economic growth because it doesn’t encourage us to be productive. Why would anyone with lots of money invest in new factories and technologies when they can buy and sell assets, such as property, which will earn more money than working on something that improves the countries ability/productivity in producing something like a good or service?
  • The irony that an ad popped up halfway through this video claiming you can make 1 million tax free through commercial property
  • @blackbeard6423
    I am particularly upset as high earner. I just worked over a year to earn a significant bonus. The tax burden is so high, it prevents me or anyone from ever becoming wealthy as an employee. The only path to true wealth is via the limited company/corporation.
  • @RedC220
    As a business owner I've reached a point where I now see little to no value in investing further in my own business. Any potential increase in returns is so punitively taxed that it's no longer attractive in any way shape or form. The bigger problem I see is there's no viable alternative to the shambles we currently have in power. We have two major political parties that are simply varying degrees of right with seemingly nothing new on offer. I'm in my 50's and I've never before reached a point where I don't feel there is a party who I feel inclined to support. I genuinely see no viable party right now.
  • @alexmeager233
    It is has always amazed me that we tax actual work progressively at 20%, 40% and 45% but capitals gains tax is lower at 10% and 20% (18% and 28% for residential property). So you literally get taxed more for producing goods and services and contributing to the economy than being lucky enough to own assets and doing nothing to earn that the return on those assets.
  • @CaptCanuck4444
    Young people like this give me hope for the future. Unfortunately, Britain has been governed for far too long by rich men born into generational wealth, intent on preserving their privilege. Taxing wealth is the solution to a better society, if only someone in power has the courage to do it.
  • I love that these corrupt politicians are being found out by these intelligent people. People are finally awakening to these corrupt and illegal schemes that is being imposed on them.
  • @albertbrammer9263
    Cut budget of prisons: more drugs and overfull prisons. Cut budget to rebuild schools: pupils cannot attend crumbling schools. Cut budgets to Councils: roads are terrible, councils going bust, poor social services, poor children's services. The list of years of cutting budgets is our country becoming crap.
  • @harrystraw9975
    This is an amazing conversation between two intelligent, articulate, and engaging young men. I was interested from start to finish. We need more people voicing sensible, reasonable and forward-thinking ideas such as this. Is it not too late to get these guys into politics? Thank you NS for this sort of content. You’ve got a new subscriber.
  • @daljitsingh2143
    You guys are men after my own heart. You've outlined how corrupt and unfair the tax system is in this country
  • @ApexCypher_
    Taxes * Income Tax * Capital Gains Tax * National Insurance * VAT * Council Tax * Corporation Tax * Dividend Tax * Bank payroll Tax * Petroleum Revenue Tax * Fuel Duties * Vehicle Tax - VED * SORN - Vehicles parked off road * Vehicle Registration * Vehicle MOT * Inheritance Tax * Stamp Duty * Tobacco Duties * Spirits Duties * Beer Duties * Wines Duties * Cider Duties * Betting & Gaming Duties * Air Passenger Duty * Insurance Premium Tax * Landfill Tax * Climate Change Levy * Aggregates Tax * Congestion Charge * ULEZ Stealth Taxes * Income Tax Threshold Freezes * Personal Savings Interest Threshold * Lifetime Allowance on Pensions * Parking Fines * Speeding Fines * Box Junction Fines * LTN Fines * AI Cameras
  • @deanroberts2021
    Would agree , I earn about £1300 after tax per month my council tax is £1260 per year. Its a big chunk of my already taxed pay.
  • @andrewcrawford1003
    The UK tax code should be a compulsory topic in state school curriculums. Tory politicians are practiced, professional (many are lawyers) liars. Teach students about the facts of the economic environment and their welfare so they can recognise a liar or a grifter when they see and hear them, and vote accordingly.
  • @ryanwilliams989
    The utilization of after-tax money and tax-free growth makes opening a Roth IRA very advantageous. Through a careful guidance of my FA, I did not pay taxes on my withdrawals of $2.86 million when I retired.
  • @mahalia_kendrick
    Some economists have projected that both the U.S. and parts of Europe could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capita income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth...
  • @zeez202
    Thanks for bringing light to this. I was astonished that Labour didn’t make any noise about this when Starmer and Sunak were made to publish their tax returns.
  • I was born towards the end of WW11, spent some years teaching the tax system for the old Workers Education Association. I would simply write a few examples of earnings on the black board and apply the tax system to the numbers. The title of my class ... If folks knew how the taxation system works, there would be a revolution. So no change here then.
  • @holdupmaster
    keep in mind that you can't 'spend' the value of your house, council tax is paid from earned (and taxed) income. This creates a problem seen in the US, where homeowners house value ends up taxing them out of the ownership of their home.