Will New Tax Rates Spell the End For the Chelsea Tractor?

Executive Summary About Will New Tax Rates Spell the End For the Chelsea Tractor? By Shaun Parker

Corporate State Tax Rates

The government are taking a hard line on cars with high CO2 emissions by introducing the new taxing system where drivers pay more tax if their vehicle has high emission levels. This is a conscious effort by the government to do their bit to reduce global warming by outlawing the likes of the Chelsea Tractor!

As of the beginning of the 2009 tax year, from April 1st onwards, the higher your emission levels, the more you will be charged for road tax. So will this mark the end of the SUV? Firstly, BMW in particular are reducing the CO2 emissions of their new range of SUV’s, for example, BMW’s highest charged SUV, the X5 xDrive48i M Sport, has CO2 emissions of just 286g/km – well below some of its competitors’ SUV’s. In comparison, a Land Rover Range Rover Sport emits 374g/km; a Porsche Cayenne S lets out 358g/km CO2 and a Mercedes-Benz GL Class 500 emits 317g/km.

Also, if you can afford to buy an SUV, then you have to be able to afford to run it and an extra couple of hundred quid a year on road tax isn’t going to be a deciding factor as to whether to buy an SUV or opt for a more eco friendly car. And given the fact that car manufacturers such as BMW are making increasing efforts to design and build motors with more eco friendly engines, fans of SUV’s will be even more inclined to continue driving their vehicle of choice.

Also, from April 2010 if you purchase a new car you will be required to pay a different rate of vehicle tax for the first year of registration. If you were to opt for a one year old used BMW X5 the price would be considerably cheaper – up to 30 per cent – than a brand new one, plus road tax would cost you more than 50 per cent less, at 455 pounds.

If you were to take this route, a brand specific dealer would be the more viable source to buy from given their expertise and offers of at least 12 month warranty, MOT and deals on servicing. Given my experience, I would always advise prospective buyers to check out their local dealership depending on which make of car they desired because of these reasons alone, but also to give the buyer peace of mind, especially when spending a considerable amount of money on an SUV.

Global warming is, of course, an extremely important issue but love ‘em or loathe ‘em, despite the government’s best attempts, I believe the SUV is here to stay. Hopefully manufacturers can continue to lower those emissions, then everyone will be happy.

Tax Rates Reflect Quality Of Life

Executive Summary About Tax Rates Reflect Quality Of Life By Sandy Cosser

It’s been found that high tax rates generally relate to outstanding social services and high standards of living. Developed countries, where the tax rate exceeds 40%, usually have free health care, free education, systems to care for the elderly and a higher life expectancy than those with lower tax rates.

Countries competing for the highest tax rates in the world are Denmark, Sweden, Austria and Belgium. According to the Guinness Book of World Records the honour goes to Denmark, where top earners are taxed up to 68% of their earnings, and the basic tax rate starts at a whopping 42%. According to a table provided by worldwide-tax.com, Denmark’s individual income tax is graduated from 35-59%. Worldwide-tax’s table shows that Sweden’s individual tax rate peaks at 56%. In answer to a question on Yahoo.Answers, a Swedish resident claims that the tax rate is around 60%. Belgium and Austria are both in the 25-50% tax bracket.

These figures seem to support the argument that countries with high tax rates take care of their residents. Israel, however, has a tax rate that peaks at 47%, very nearly equal to that of Belgium and Austria, yet few would contend that it is in the same class with regard to civil delivery.

Dubai, Russia and Hong Kong have the lowest tax rates in the world. Those working in the UAE take home 95% of their salaries. In Russia tax rates begin and end at 13%, while you can expect to pay tax of between 16 and 20% in Hong Kong. After about 5 – 10 years they go back home and pay large deposits on property, minimising their bonds and the pay back period, or set themselves up for a comfortable retirement.

Tax is a universal certainty. Another tax-related certainty that’s virtually universal is that single people pay more tax than their married brethren. Married couples with children pay even less tax. In fact, the more children you have, the lower your tax rate. Being fruitful and multiplying is not, however, widely regarded as a successful tax evasion strategy.

Chek out others articles on File Taxes

Popularity: 15% [?]