16 May

This fella stood up on Q@A last night and questioned how it's fair that rich people would have almost half their income 'confiscated' if the top tax rate went back to around 50%. Firstly he doesn't understand marginal tax rates. Only the amount above the top tax threshold would be taxed at that rate. But more importantly, this idea that tax is theft is surprisingly common. As if we all have private money, which the government then takes away. There is no such thing as private money, to make any money you need a government. If you don't believe me, go and live in Afghanistan or Syria for a few months. Tax is what you pay to get the services that allow you to live a good life, including making money.