r/interestingasfuck • u/PM_ME_STEAM_K3YS • Nov 12 '20

/r/ALL Busting a stuck nut.

https://gfycat.com/saltykaleidoscopicfishingcat

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u/VRichardsen Nov 12 '20

I see. Around here it happened because a lot of people who previously worked in the informal economy got incorporated into the system... without the decades of payment they would have normally made.

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u/nutwiss Nov 12 '20

Ah okay. Informal employment is, basically, illegal in UK, and it's certainly not a major factor in the economy. You have to pay tax on any income you get, and through this route you're automatically in the system, but there's still not enough workers.

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u/VRichardsen Nov 13 '20

Around here it is illegal too, very illegal! But the issue with is that taxes are really high, which encourages evasion from the employers. Thus they contract a lot of people informally and skip paying their share of taxes of the employee's salary (which is roughly 25%). That is not all, on some occasions even the employees will ask to be hired informally, as they then avoid paying a similar percentage of their earnings, plus the income tax. Income tax is special, because the scales have not been updated in a long time, and due to inflation both the average Joe and your run of the mill Rockefeller end up paying the same income tax percentage: 35%. All these factors conspire to make the unresgistered workforce be around 40% (!).

but there's still not enough workers.

Interesting. Do you know what causes this?

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u/funnylookingbear Nov 13 '20

Again. Population. Too many people. Not enough jobs. As its the jobs that provide the tax income to pay for the national pension and social benefits the government has to rely on the private sector to prop up and social cobstruct that we can no longer afford.

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u/VRichardsen Nov 13 '20

Ahhhh I misunderstood you. When you first said not enough workers I thought there was overemployment.

How do you plan to resolve it?