A nation of millionaires
You'll recall this week's story based on a report by accountancy firm Smith & Williamson, that said the average higher-rate taxpayer pays 50% of his/her income in tax. As I pointed out, the analysis was laughable, as it included seven years' housing stamp duty in one year.I said at that time that there were two conclusions one could draw
1. Smith & Williamson knew that this was wrong, but they didn't care, because they wanted to score political points.
2. Smith & Williamson genuinely didn't understand how averages work.
It appears there is a 3rd suggestion. A correspondent writes:
Smith and Williamson may have correctly calculated the stamp duty over seven years, but perhaps they believe the average higher rate taxpayer pays some £1.3m for their property.
This indeed might be the case. If so I expect a press release from Smith & Williamson, and an editorial in The Telegprah lauding this government for creating a class of over 3m millionaires. Truly an economic miracle.
posted by Matthew @ 9/10/2004 08:48:00 AM
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