Government to bring in 45% income tax for top earners (£150k pa)

Hades

Hades

Hades

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Just heard it on the BBC. Income tax rumoured to go to 45% for "top earners" (which they quoted as people earning £150k+).

Now I'm nowhere near that top rate (looooooooooooong way off it). But I'm now starting to get worried about the government having knee jerk reactions in all directions on tax.

I'm really now going to start battening down the hatches and spend as little as I can. My job is probably not safe and I've no idea what costs/tax are coming up.
 
When will government learn that it can't tax its way out of a recession. Also taxes are pretty poor at enforcing policy as well. What we need is cash flow - taxes don't create a cyclical cash flow like we need....

I'm no where near £150K (less than 20% of it) but its really sad to see.
 
It's politically brilliant in some ways, negates the argument they aren't funding spending and tax cuts elsewhere from the tories. Yet the tories can't really argue against a tax rise for people making £150k+ without looking out of touch. Clever.

Economically, it won't raise anywhere near the equivalent of the 2.5% reduction in VAT so it's pure politics...
 
Can we drag Maggie back out to save us again please?
(I have a feeling that may stir up a hornets nest)
 
How stupid. It'll cost a fortune to administer while brining in a bit more tax revenue and making more and more people likely to move to a different country, thus removing investment and tax income from the country.
 
I wonder how many people will be effected by this? Most people that I know who earn more than £150k run their own businesses and take dividends or similar therefore they don't pay tax at anything like 45% anyway and won't be bothered about this rise.
 
cheets64 said:
You could say big earners go us into this mess so hit them where it hurts their wallets.

:p
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You could say that, but you'd be very wrong.

It was the people spending beyond their means that got us into this, not the people with ample spending power.

:rolleyes:
 
Abolish the 10p, then give money back to the poorest ones who were hit (but not everyone else), lower VAT for everyone (handy mostly for businesses), then tax the top earners even more just to discourage them from spending any extra money. Awesome!

Not complaining about that VAT cut though, that is handy for us :)
 
Kemik said:
How stupid. It'll cost a fortune to administer while brining in a bit more tax revenue and making more and more people likely to move to a different country, thus removing investment and tax income from the country.
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Hardly any cost to administer over the existing system though, and if it was me, I'm not sure I'd move abroad for the sake of an extra 5% of everything over £150k...
 
It'd be nice if they could raise the threshold for 40% income tax. It does my head in doing overtime and seeing 40% of it get wiped out by tax :( Middle earners get hammered at the moment.
 
paradigm said:
You could say that, but you'd be very wrong.

It was the people spending beyond their means that got us into this, not the people with ample spending power.

:rolleyes:
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But who lets people spend beyond their means, people at the top earning very high wages not people making minimum wage for 40 hours a week. I worked partime time and had 5 credit cards with £2k limit on each no questions asked.
 
Beansprout said:
Abolish the 10p, then give money back to the poorest ones who were hit (but not everyone else), lower VAT for everyone (handy mostly for businesses), then tax the top earners even more just to discourage them from spending any extra money. Awesome!

Not complaining about that VAT cut though, that is handy for us :)
Click to expand...

Giving the rich tax breaks has been fairly well proven not to provide an economic stimulus at times like this, if you give the less well off more cash they are more inclined to spend it. If you earn £150k+ you likely don't alter spending habits in a recession anyway, so says previous experience anyway.

It is very old labour though, increase a progressive tax and cut a regressive one, we'll have the closed shop back next :p
 
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