Wednesday, 9 December 2009

Free tax advice for entrepreneurs

For my sins, I am having to read some of the analysis leading up to today's pre-budget report, and I've just come across this comment from Tim Gregory. Tim works for Saffery Champness, a firm of accountants who advise owner-managed businesses, wealthy individuals, and the like.

Tim told the FT....

“With a proposed increase in the top rate of tax to 50% (51.5% for earned income), top earners and entrepreneurs are going to shoulder a large burden of tax increases in the coming years, which will inevitably discourage some from putting 100% into helping to rebuild the economy.”

Tim, I think your clients need different advice.

Top earners and entrepreneurs who are in it to rebuild the economy should be delighted that more of their income is going to go to people who need it more than they do. Top earners and entrepreneurs who are in it for the money should work a bit harder so that they can take home as much as they used to. Top earners and entrepreneurs who use their income to measure their worth should just compare pre-tax earnings.

It's the confused and bewildered top earners and entrepreneurs who should be discouraged. And the sooner they stop trying to help the better things should get.


gom1 said...

"British Bankers' Association criticises plans for a windfall tax on bonuses". For the rest of us, that sounds like an endorsement.

Russ Nelson said...

I'm thinking that you don't understand incentives. Until you do, perhaps you could make the world a better place by refraining from commenting on a subject about which you transparently know little.

gom1 said...

Crikey Russ, I'd never tought of looking at that way. Thanks for putting me right.

Paul said...

It is only government posturing, the banks will rearrange any payments to avoid the tax, as they have a legal and moral right to do.