If the rich are getting richer than Croesus while we have significant unemployment, underemployment and working poor then they are clearly not paying enough.Sandydragon wrote:UGagain wrote:Sandydragon wrote: Yes, they own property. M not sure how that distracts from the fact that the rich pay a large amount of money to the treasury.
You entire premise of "fairness' is based on the spurious assumption that the government requires tax 'income' to spend and therefore tax is a 'contribution' to the operation of the state.
It is an entirely false notion. The government creates the money that pays the taxes.
Pretending otherwise is futile.The UK government is the monopoly issuer of pounds sterling in any form. Only government created pounds can settle tax liabilities or buy government bonds (that you call debt).The government creates the money we use in a physical form.
The pound is a sovereign, fiat, floating exchange rate, non-convertible currency. It is not 'based on' anything. The government creates money every time it spends. They create money when they pay your salary.But the government tends to avoid creating money without basing it on something.
Vast amounts of money are created and destroyed every day of every week of every year.
QE is merely swapping treasury bonds for reserves. It is an asset swap, a reshuffling of the non-government's financial asset portfolio. Nothing more, nothing less. The effect is to drive down long term interest rates and is likely to contribute to deflation due to the loss of interest income to the private sector.QE is dangerous and is thus used sparingly.
What makes you think it is 'dangerous' and why are you even mentioning it?
The tax system in the neoliberal era has been designed to be non-redistributive. The rich pay far less than they used to under a far far more successful political/economic regime.The tax system is designed to be redistributive and does that to an extent.
The net effect for people is the rich pay a considerable percentage of the nations taxes, proper people pay less, with a high proportion of homes receiving more back than they pay in.
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If the government needs to supplement the wages of a significant proportion of the population that means the rich business owners aren't paying their employees sufficiently.
It's hard to see that the rich are being hard done by when you look at just those two facts alone.