Income tax

[Gib]

Hi again, I was looking at the income tax rates in Gib and it obviously
struck me that they're quite a bit higher than the UK. Anyone know the
reason for this?

Potentential reasons for such a high rate strike me - not VAT, low
corporation tax, no capital gains tax...

[Steve]

You have about summed it up.

I have always said if they stuck 20p on and pack of fags and 50p bottle of
plonk then they could lower tax rate ;-)

Steve

"Gib" <g...@invalid.net> wrote in message
news:1h6r10demgt6g$.dlg@invalid.net...

[Ken]

"Steve" <No_e...@mail.mail> wrote in message
news:ctqbr...@news1.newsguy.com...

No inheritance tax either - you forgot that one. The reasons are also
historical. The UK has lower rates of personal taxcation than many
jusrisdicxtions in Europe, and I think it harks back to yesteryear. When the
UK built its roads and rail network the London Underground etc., who do you
think paid for it? The UK taxpayer? No way! That was paid for by Malasian
rubber, S African gold, Indian diamonds etc. The preseumption was that
whenever these projects might need updating, these same (other peoples)
natural resources would do very nicely, thank you very much. In the interim,
the UK lost or was relieved of her empire. Now thgese major projects need a
revamp and noone is prepared to pay. Hence the hassles with the exchequer,
parliamentary term over and again, and no govt will do what has to be done-
increase taxes significantly.

Meanwhile, all over Europe other people have had to fund their projects
themselves. They are used to paying for it, and can readily raise cash for
their upkeep.

Gib has no natural resources, so the UK could steal none. That is perhaps
why the UK is better though of in Gib than in the rest of the erstwhile
empire - nothing was taken from Gib. Gib meanwhile built its own roads and
services from her own sources of funding. Sure, the local economy was
heavily dependent on UK defence spending - but these were not handouts.
Money coming in to Gib was earnt in trade, be it the supply of skills or of
goods imported.

My ha'pence worth.

K

[Jim Watt]

On Wed, 2 Feb 2005 11:15:04 +0100, "Steve" <No_e...@mail.mail> wrote:

>You have about summed it up.
>
>I have always said if they stuck 20p on and pack of fags and 50p bottle of
>plonk then they could lower tax rate ;-)

Thats the simple view, in practice if you do that sales go down so the
return is not what you expect. In practice a lot of research thought
and consultation with the suppliers goes into setting rates to
maximise income from those things. Of course if our neigbours
increase their prices there is room for tracking them.
--
Jim Watt
http://www.gibnet.com