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12 months into the Tory Government - is Britain more open for business?


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Of course it matters- if you merely administrate people handing over their money after doing their returns you are a clerk not really producing anything. On the other hand if you are chasing down evaded taxes that wouldn't have otherwise have been paid you can argue you are bringing in some money. But either way it's the person paying the taxes who is the income generator not the tax administrator.

 

Oh... OK.

 

So if, for example, you work for Fred & Co. You earn a wage, yet your emplyer earns more, therefore you are generating wealth for someone else by working for them. Now, imagine "Fred & Co" employ debt collectors to retrieve a bad debt, now you've got four levels earning from one source (the lowly individual that is collecting from the debtor). One is simply collecting, the two above him are still getting their money, regardless of the source or route.

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Of course it matters- if you merely administrate people handing over their money after doing their returns you are a clerk not really producing anything. On the other hand if you are chasing down evaded taxes that wouldn't have otherwise have been paid you can argue you are bringing in some money. But either way it's the person paying the taxes who is the income generator not the tax administrator.

 

But the person isn't paying the tax, that's the whole point. They are evading the tax and I, and others like me, are taking it off them in order to pay for hospitals, schools, war in Libya etc

 

A person who evades tax may well be an "income generator" but they are generating that income for themselves, not the exchequer.

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Oh... OK.

 

So if, for example, you work for Fred & Co. You earn a wage, yet your emplyer earns more, therefore you are generating wealth for someone else by working for them. Now, imagine "Fred & Co" employ debt collectors to retrieve a bad debt, now you've got four levels earning from one source (the lowly individual that is collecting from the debtor). One is simply collecting, the two above him are still getting their money, regardless of the source or route.

 

From your example:

 

I work for Fred and Co. - I get paid by the company from it's revenue which is produced by the value I and others provide to the company.

 

The employer is also paid by the company from it's revenue based on their value - including being smart enough to hire me!

 

If Fred and Co. employ a a debt collector then they are gaining a service which will increase the net value of the company.

 

Then of course there is also any shareholders of Fred and Co. who receive a revenue in recompense for the money they have put into the company.

 

In all cases the company is is the entity that creates revenue by coordinating their staff and resources. The tax office takes a slice of this and then the government uses it as it sees fit; it's the only entity in this arrangement which doesn't actually put anything directly into the company in order to get money out of it.

 

But the person isn't paying the tax, that's the whole point. They are evading the tax and I, and others like me, are taking it off them in order to pay for hospitals, schools, war in Libya etc

 

A person who evades tax may well be an "income generator" but they are generating that income for themselves, not the exchequer.

 

They are still the income generators aren't they? If they didn't produce an income there would be nothing for the government to take a slice of. The tax office merely administrates taking that slice of income from the people and companies who actually generate it.

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As are the clerks in the tax office.

 

No - they take a slice of income generated to pay to the goverment - they do no of themselves generate income. If no-one in the country made any money then the clerks in the tax office would have no money to re-allocate. It's the individuals and companies who pay tax who actually make the money.

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