Tuesday, 18 January 2011

Just attacking the rich?

The sun newspaper is truly home once again. Most of its reader are suffering from the cuts, the vat and the petrol increase and how does the Sun report it? Attacking the rich does not help. It was a good job I was reading it in work where Helen could not hear my anger.
When you tax the 'Rich' you are trying to divert some of the funds in the economy from those who have plenty to those who needs more.
This is not wrong, it is hard for those who have plenty to see more of their money being taken than is taken from the less well off - but it is just hard - not wrong. Without the people at the bottom of the ladders on which the rich sit, the rich have no ladder to climb and therefore no way of increasing their wealth.
It has been proven that the 'Healthiest' economies are ones where the distance between the top and the bottom is less. Economies where the overwhelming majority of people feel comfortable in their situation are the most resilient to shocks and show a more consistent growth pattern and this is what we should be aiming for.
I would like to see a situation where the top earners can offset more of their taxes against charity donations. I believe we should have a system where if you donate £50,000 to a national charity fund you get to keep and extra 1% of your income (the numbers are irrelevant - that is for others to decide on - this is about the principle). The money should be paid into a national charity fund, along the lines of the Lottery fund only for charities such as help the aged etc. This would ensure the funds are spread evenly throughout the country and not just donated to the local brass band charity or something similar. It is vital that the mechanism moves the money around the country in the same way that a companies Head Office does the opposite i.e. if you buy a coffee in the north of Scotland, you will be supporting a HO in London with the profits made on the cup.
The HO also holds most of the high paid jobs and therefore a lot of the profits from that company will be spent locally rather than nationally, so the redistribution of this wealth plays an important part of the solution.
This (along with the moving of government offices) will help to smooth out the money across the country and will help to create a more even distributed economy. It is not the complete solution but it is part of it - it allows high earners to earn more and keep more while at the same time giving more to those who need it most.
One final thing, to return to my original point. This is not taxing the rich - it is taxing the greedy. I don't think anyone in society has a problem with some people earning more than others, provided it is deserved and they have worked for it and that they then re-pay some of it to society. The greedy are those who feel they should not contribute funds back into the economy and do everything they can to avoid helping others. This is why the Sun (see earlier posts regarding the over centralisation of political power) is wrong.

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