I think Munky1080 was referring to your typo "40£" that should have been "40%"?
and if we're being picky the 10% still exists for dividends as well as savings, although doesn't affect the tax liability for a basic rate payer.
10p tax band
- Thread starter shifty_uk
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I think Munky1080 was referring to your typo "40£" that should have been "40%"?
and if we're being picky the 10% still exists for dividends as well as savings, although doesn't affect the tax liability for a basic rate payer.
I'm not a high earner. But to answer your question anyway; yes. I don't think the fact you earn more should make it OK to have to pay more. What's the point in earning more money if everything then costs you proportionally more?
Yeah it would be, but I wasn't suggesting a flat rate of tax. But I also don't think 40% is a fair amount on anyone.
And to think the Lib Dems until a couple years ago wanted a 50% tax rate (I may be mistaken here)... absolute idiots.
Yeah it would be, but I wasn't suggesting a flat rate of tax. But I also don't think 40% is a fair amount on anyone.
And to think the Lib Dems until a couple years ago wanted a 50% tax rate (I may be mistaken here)... absolute idiots.
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Soldato
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The 40% comes in to play for what you earn OVER the ~£36,000 threshold. Not 40% of everything you earn once you go over that amount.
Other countries are just as bad, america charges 35%.
So what do you suggest? Employers DO recognise income tax, hence why you'd get other benefits, they give you an increase of pay which is relevent even after tax. If the government were to introduce a tax rate for everyone which is the same it would hit less earners even harder than it is now. Im not saying I love the 40% tax but I do accept it, and I'd rather live in this country than many others who have less income tax.
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Are you seriously 31 and dont recognise how income tax works? Do you think if you earn over the threshold you suddenly earn less?
I know how tax works, it was just an example, what is the point of improving yourself, if all of a sudden 40% of all the extra you earn at an arbitrary limit is taken from you?
I perhaps didnt word it as well as i should have done.
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I know how it works.
In fact, looking at what ive written, you'd have to go someway to accusing me of not understanding how the 40% band works.
Its says 40% of everything extra i earn once i get over the 40% threshold.
I've used just a random amount of cash in the example, say i got promoted and earnt over 36k, why should everything over that sudden be eligible for 40% tax?
etc etc etc
Perhaps learning how to read would be a good thing to do first before calling me stupid.
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http://en.wikipedia.org/wiki/Progressive_tax
This has some good arguments for and against. I feel the for outweigh the against.
Another thing to note is that because higher earners spend less on goods and more on savings, they evade VAT more, so less of their income is spent on VAT.
Overall the total percentages of direct and indirect taxes for each segment end up being evened out by this effect.
(shamelessly stolen image from one of my economics teacher's presentations
)
This has some good arguments for and against. I feel the for outweigh the against.
Another thing to note is that because higher earners spend less on goods and more on savings, they evade VAT more, so less of their income is spent on VAT.
Overall the total percentages of direct and indirect taxes for each segment end up being evened out by this effect.
(shamelessly stolen image from one of my economics teacher's presentations
)
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Not really. If the upper tax band was at £30,000, and you say you wanted to stay at £29,999. What if I got a promotion to manager at £40,000. Ok so £4000 tax would have to be paid, I'd still be earning £6,000 extra. From what you're saying thats not worth it?
That is such a silly methodology to me, and probably a lot of people, which is why a lot of people would think "that poster would be silly to say that, so they mustn't understand how tax works"
That is why I said it.
You'd need to earn 36k AFTER the personal allowance anyway.
Just be glad you don't live in Denmark. 59% is the higher rate there. Hey also have a 250% rate for luxuary goods.
For example my £45k Lexus GS430 retails at the equivelant of £130k in Denmark.
On the flip side, the Danes have the best NHS in the world, the best welfare system in the world, highly subsidised public transport and they are also the happiest people in the world.
The tax in the UK isn't bad at all but it's the terrible services we get in return that's the issue. People want to feel that they get good value from our tax. At the moment we see the money wasted.
For example my £45k Lexus GS430 retails at the equivelant of £130k in Denmark.
On the flip side, the Danes have the best NHS in the world, the best welfare system in the world, highly subsidised public transport and they are also the happiest people in the world.
The tax in the UK isn't bad at all but it's the terrible services we get in return that's the issue. People want to feel that they get good value from our tax. At the moment we see the money wasted.
Yup, that's the only issue I have. I've no problem with adding another band above the 40% one, but we'd have to see a decent return in public services for it and I just can't imagine that happening.
I think its irrelevant, to suggest otherwise is plainly stupid. If it wasnt stupid then the only way to get round it is to have different prices for goods and services dependant on what you earnt be it less/no VAT or staged pricing. How would you descriminate between the rich and poor, a rich and poor ID card ??
Just because employers shell out more to overcome the tax, it's not "cancelled out" and magically made OK again. If you run your own company there is no employer to pay you more. I didn't (and wouldn't) suggest a flat tax rate, either, but that doesn't mean I think it's OK to "steal from the rich".
I've said it before and I'll say it again; I'd certainly live in a different country and have no attachment to Britain other than my family. Whether I'd stick to that and prefer it when I'm there though, is a question I can't answer. If I disagree with something I won't just accept it.