Tie Your Camel

Tracey Emin decides to weigh in with an uninformed opinion

You can’t go a week without reading another story about the wealthy threatening to leave our shores because of something or another. ‘Taxes are too high!’ cry the bankers and glitterati. Tracey Emin has decided to join the whining droves, per BBC:

The government’s 50p tax rate for incomes of more than £150,000 will be introduced in April.

Emin said she is considering France because she thinks it has lower taxes and appreciates the arts more.

She said: “So much here is simply not working now. The taxes are too high, there aren’t enough incentives to work hard, and our politicians have put me off. We’re paying through the nose for everything.”

‘Importance of culture’

Referring to the new tax, she said: “I reckon it would mean me paying about 65p in every pound with tax, National Insurance and so on.“

Oops. Someone doesn’t understand how income tax in the UK works.

Income tax is not levied at a fixed rate. It is charged in bands. Your first £6,475 (current allowance) is not taxed. From £6,475 to £37,400 you’ll pay tax at a rate of 20% which means of the £30,925 you will pay £6,185 in tax. Above £37,400 you’ll pay at a rate of 40%. The proposed limit for the 50p tax band is £150,000. So, from £37,400 to £150,000 you’ll pay £45,040 on £112,600. Let’s say you earn £200,000, to create an example of what happens with tax, you’ll pay £25,000 tax on the £50,000 above £150,000.  This means that out of £200,000 you’ll pay £76,225 in tax, or a total of 38.11% of your total income.

Now what about National Insurance? Well if you’re employed you won’t really have worried about it, because it all happens on the employer’s end. It’s probably just a figure you look at on your pay slip. Take a look at an explanation on Direct Gov. Tracey Emin is probably self-employed (being an artist) which means (and let’s use the £200,000 figure as an example), she will pay 8% national insurance on a sum between £5,715 and £43,875 (on taxable profit which we’re assuming is £200,000 heading her way) which works out as £3052.8. At 1% NI on the remainder of the taxable profits she’ll pay another £1561.25.

This all means a total bill on her side of £80,838.80 which translates to 40.42% (rounded up) of her yearly income going on tax. This presumes no exemptions or naughty ways of getting around taxable income that the wealthy with their clever and highly-paid accounts manage to employ.

So no Tracey, you’re not going to pay 65p on the pound on income tax and national insurance. You’ll pay about 40p overall. But thanks for weighing in on the topic.

If you think any of my figures are incorrect, please do get in contact and enlighten me.

According to the BBC, David MacKay (who will be the government’s new energy advisor) has warned that if we don’t step up our conversion to greener energy, we will start facing blackouts when we phase out coal and nuclear power stations.

I’m not really sure of the veracity of this story and it could simply be a piece of ‘Flat Earth News‘. I doubt the Government would allow the phasing out of the plants if it would lead to significant blackouts. However hyperbolic the claim, it does contain an important message: we should be switching as far as possible to greener sources of energy. I’m seriously considering investing in putting solar panels on my roof so that in the summer I can start using solar energy instead of energy from the grid. I’m still investigating the possibility.

In the mean time, remember to do the basics: switch off your lights when you’re not using them or when they’re not necessary; do unplug your electronic equipment when you’re not using it and (this is rarely done), do write to your local businesses and MPs and complain about the habit of leaving on lights, signs, televisual equipment etc throughout the night.

If you’re a little to the left like me and you give a damn about the environment and sustainability, you might be interested in having a look at this website: Breathing Earth. It has realtime updates of the global population, births and deaths per country, and CO2 emissions. It will also give you detailed stats for each country when you hover over it with a mouse. Go check it out!

Not so much 'breathing' as 'suffocating'

Hannan has issues a response (or a ‘final word’) on, surprise surprise, the Daily Telegraph’s website. You can read the whole article here.

It’s clear Hannan’s an intelligent fellow. I think it’s easy to assume that when he goes on US TV, he’s not being ambushed, but he knows exactly what sort of environment he is getting into and exactly what sort of effect his comments may have. I am sure he is well aware of the current political circumstances in America. He seems to be a politican 2.0 sort, so no doubt he’s crawled through youtube looking at the same sort of videos anyone who’s interested in American politics will have seen.

So he does the rounds on Glenn Beck and Sean Hannity and is praised by the likes of cretinous Cavuto. His words are being used right now in the US to support the idea that the NHS is evil and Orwellian. They are being used to directly influence American domestic opinion and policy.

Meanwhile, the examples he provides are terrible. For example, from the Glenn Beck clip I posted in a previous blog post:

And he said, “Look, I’m in real pain, can I have some painkillers while I’m waiting.” And they said, “No, get to the back of the line.” He said, “Look, I’d buy them.” And they said, I think they became very aggressive, “What do you mean you’re going to buy them. This is the National Health Service, so we don’t have any provision for independent purchase of medicine.”

So, that’s the — that’s the mentality.

Let’s give him the benefit of the doubt over the phrasing. There is a very good reason as to why receptionists don’t have the power to immediately hand out painkillers or any medicine. Firstly, they are not doctors and may not know what is appropraite. Secondly, they do not know if this person is some kind of drug addict. Thirdly, they don’t know if this guy is going to have an allergic reaction to painkillers or if he’s already taken the accepted dose. It isn’t their job to do it. If the pain was pretty bad, he should already have bought and taken over-the-counter drugs. If the pain was extremely bad, he should have emphasised its urgency (the example doesn’t sound too urgent). I’m sure that when you go to A&E in the US, you get instant treatment and the receptionists hand out painkillers like candy (or maybe not).

We have 1.4 million people employed by the National Health Service. It is the third biggest employer in the world after the Red Army in China and the Indian National Railways. Most of those 1.4 million people are administrators, that the managers outnumber the doctors and nurses. And that is the electoral bloc that makes it almost impossible to get rid of.

This is a mix of a massive fallacy and an outright lie. Firstly, about 3% of the NHS workforce is managerial and about 40% are doctors and nurses, while a further 40%-odd are directly involved in patient care. Secondly, Wal-Mart employs about 1.8 million. Thirdly, the fact that it is ‘one of the biggest employers in the world’ really isn’t relevant. It is here considered a single, massive organisation, that is not broken down into chunks. If private healthcare in this country had the capabilities of the NHS, it would need similar staff levels. Places like Germany do not have a single health employment umbrella and so several organisations involved in patient care. So, for example, in the US, about 12 million people are involved in healthcare. Yes that’s right. To cater for a population about 5 times the size of the UK’s, the US has 10 times the number of people involved. This does not indicate that the NHS is bloated. In comparison to the US it is positively anaemic.  Even if you accept that this workforce shouldn’t be employed by the state, the workforce involved would probably need to be at least at the level it is at the moment. Oh-oh.

So what’s the problem with Hannan again? His erroneous consideration of the NHS is being used as an example to manipulate American domestic opinion and block what might be one of the biggest and best changes to hit America in the last few decades. It is horrific and I hope his political career suffers as a result.

Oh God, I'm HARDtalking!

If you’re outside the United Kingdom, you may not be able to watch the video in this link, and if you are in the UK I’m not sure how long the link will remain active on BBC iPlayer, so get it while you still can! Livingstone is being interviewed by Stephen Shakur. It’s well-worth watching; Ken defends his tenure as Mayor and current & former stances on the labour party with his usual wry wit. Shakur is unable to crack him, even on the Chavez issue.

Looks like Ken’ll be running in 2012 then!

Click on the picture to the right to view the video on BBC iPlayer.