Author Topic: Letter in the rag - Why aren't I taxed like a 1.(1).K?  (Read 12492 times)

Jason the Maverick

  • Guest
Letter in the rag - Why aren't I taxed like a 1.(1).K?
« on: September 17, 2008, 06:26:05 PM »
http://www.thisisjersey.com/2008/09/17/why-arent-i-taxed-like-a-rich-incomer/

From Adrian Rabet.
MUCH as I like Senator Terry Le Sueur as a man, his rebuttal of the attacks on the current status of 1(1)(k) residents’ tax arrangements are indefensible.

Why should he be able to say that their arrangements with the States are any more sacrosanct than my own?
It may well be the case that they promised to pay a certain amount in tax indefinitely, but firstly it is a precept of law that one government cannot be tied by the decisions of others, and secondly I cannot recall being asked a similar question – if so, I would like to pay no tax, as this was the case when I first entered employment in Jersey.

Furthermore, the States did not ask my permission to vary my tax rate and amount as I became more successful, nor did they ask me whether I wanted to opt out of GST or the zero-ten proposals. These changes varied my own arrangement with the States of Jersey – why should I not have the ability to reject them in a similar way to 1(1)(k) residents?

I believe that my situation under the law should be treated equal to others. This derives from the Magna Carta of 1215. Consequently, the States of Jersey must act like real legislators and inform 1(1)(k) residents that times have changed and so, necessarily, must their arrangements in order that they pay their tax in a progressive manner and in a way commensurate with their earnings and wealth.


Offline Fritz

  • Hero Member
  • *****
  • Posts: 2680
  • Gender: Male
Re: Letter in the rag - Why aren't I taxed like a 1.(1).K?
« Reply #1 on: September 17, 2008, 06:28:29 PM »
Fair comment.

Offline danrok

  • Hero Member
  • *****
  • Posts: 2856
  • Gender: Male
Re: Letter in the rag - Why aren't I taxed like a 1.(1).K?
« Reply #2 on: September 17, 2008, 06:35:25 PM »
I'd be interested to hear what the newbie candidates' policies would be on this 1(1)K situation, the free-lunchers.

Chief Minister

  • Guest
Re: Letter in the rag - Why aren't I taxed like a 1.(1).K?
« Reply #3 on: September 17, 2008, 06:40:37 PM »
?


Offline Fritz

  • Hero Member
  • *****
  • Posts: 2680
  • Gender: Male
Re: Letter in the rag - Why aren't I taxed like a 1.(1).K?
« Reply #4 on: September 17, 2008, 06:42:42 PM »
Nice machine.

Offline moot

  • Hero Member
  • *****
  • Posts: 1149
  • Gender: Male

Offline stoofa

  • Full Member
  • ***
  • Posts: 145
Re: Letter in the rag - Why aren't I taxed like a 1.(1).K?
« Reply #6 on: October 17, 2008, 03:50:06 PM »
Idealistically inequitable, but 5% of loads is still a lot of tax take.

A rock and a hard place really. Turn a blind eye to the inequity of 1(1)k's being taxed at lower effective rates than everyone else and take the benefit or tax them at a 'fair' rate and risk losing their contribution totally, which will mean higher taxation on the general populace.

I guess lifes easier when you have £10m+ in the bank.....

Offline The Rev Peter Sarkey

  • Hero Member
  • *****
  • Posts: 999
  • Diocese of St Swithins
Re: Letter in the rag - Why aren't I taxed like a 1.(1).K?
« Reply #7 on: October 17, 2008, 06:13:16 PM »
It'd be a shit load worse if I didn't  ;)
"That's not in the effing good book!"

Offline Fritz

  • Hero Member
  • *****
  • Posts: 2680
  • Gender: Male
Re: Letter in the rag - Why aren't I taxed like a 1.(1).K?
« Reply #8 on: October 17, 2008, 08:27:07 PM »
Think of all the extra space we would have for affordable housing in nice areas if they all pissed off.

I reckon 50-60 families would contribute a lot more tax than a 1(1)k taking up the same amount of space.
They would also contribute a lot more to the local economy by simply doing the weekly shopping.

Offline stoofa

  • Full Member
  • ***
  • Posts: 145
Re: Letter in the rag - Why aren't I taxed like a 1.(1).K?
« Reply #9 on: October 18, 2008, 03:07:45 PM »
Think of all the extra space we would have for affordable housing in nice areas if they all pissed off.

I reckon 50-60 families would contribute a lot more tax than a 1(1)k taking up the same amount of space.
They would also contribute a lot more to the local economy by simply doing the weekly shopping.

Well it would certainly be in line with the population growth plan if nothing else:-)

Seriously though the average tax take from the average 1(1)k is pretty significant. You'd need a lot of regular folk to make up for it.

Offline Fritz

  • Hero Member
  • *****
  • Posts: 2680
  • Gender: Male
Re: Letter in the rag - Why aren't I taxed like a 1.(1).K?
« Reply #10 on: October 18, 2008, 04:01:44 PM »
1(1)k,s take up loads of room. They do not contribute significantly to the local economy.

Does a wealthy immigrant eat more than 40 working class families?
Is a wealthy immigrant committed to using local labour?
Do wealthy immigrants pay their fair share of Income Tax?

Offline stoofa

  • Full Member
  • ***
  • Posts: 145
Re: Letter in the rag - Why aren't I taxed like a 1.(1).K?
« Reply #11 on: October 18, 2008, 08:17:20 PM »
1(1)k,s take up loads of room. They do not contribute significantly to the local economy.

Does a wealthy immigrant eat more than 40 working class families?

Unless Rik Waller has recently moved in, no

Quote
Is a wealthy immigrant committed to using local labour?

I doubt they go out of their way to employ overseas labour

Quote
Do wealthy immigrants pay their fair share of Income Tax?

Their effective rate on worldwide income is likely lower than most peoples, so no

Does the tax take they provide subsidise public services for everyone else.

Yes

I'm a little doubtful of the claim that 40 odd familes would fit in the space occupied by you average 1(1)k, unless were talking about chucking up town style dandara blocks everywhere. Can you support that.

On the benefit to the local economy point its also worth noting they don't put any real pressure on infrastructure either.

Devil's Advocate is a fun job :-)

Offline The Rev Peter Sarkey

  • Hero Member
  • *****
  • Posts: 999
  • Diocese of St Swithins
Re: Letter in the rag - Why aren't I taxed like a 1.(1).K?
« Reply #12 on: October 18, 2008, 09:16:31 PM »
Ten guys go into a bar where they meet for a beer every week.
Each week they each have two beers costing £2.50 each. Between them they spend £50.
The first is out of work he has no income and is given pocket money by his wife
The second and third are earning less than £10,000 per annum
The fourth, fifth,and sixth guys earn more than £10,000 and less than £30,000
The seventh , eighth and ninth guys earn £40,000 to £80,000 pa
The tenth has a six figure bonus every year on top of his seven figure salary.
They decide that as they have a routine to ask the landlord for a discount, he decides as they are loyal to give them 10%. Making the bar bill £45.
Immediately the poorer ones start to kick up saying that it isn’t really fair as it barely makes a difference especially the richest, the second and third agree with him.
The landlord then suggests that the richest guy should pay the first £25 and the rest should pay £20 split up in order of earnings.
The Rich guy puts up with this for a couple of weeks and then gets pissed off that he is paying  £20 over the odds for his beer, so one week he decides to move to another bar and make new friends.
This leaves the first 9 guys with insufficient funds to pay for their 18 beers .
Do this with taxes and our rich guys will find somewhere else to go.
"That's not in the effing good book!"

Offline Fritz

  • Hero Member
  • *****
  • Posts: 2680
  • Gender: Male
Re: Letter in the rag - Why aren't I taxed like a 1.(1).K?
« Reply #13 on: October 19, 2008, 05:20:19 PM »
Let them go, and see what really happens.

We dont live in a bar.

Offline The Rev Peter Sarkey

  • Hero Member
  • *****
  • Posts: 999
  • Diocese of St Swithins
Re: Letter in the rag - Why aren't I taxed like a 1.(1).K?
« Reply #14 on: October 20, 2008, 10:32:19 AM »
Fritz I always stick by what I say, If Jersey lost its financial crutch, it may become the nice place it was. This won't affect the millionairs. They will always come and go whether there is a convenient tax scheme or not.
"That's not in the effing good book!"