would you still work if

I'd say the majority of the forumites would just continue on working, but benefits would seem like even more of a good alternative to working to even more people.
 
The next 20 years your standard of living is going to drop like a rocket, the government needs more money in fact a hell of a lot of money.
 
I'd keep working, in the knowledge that a decision like that would cause a massive economical collapse.
 
I wouldn't work for 50% tax, So for example if I was ever in a position where I could earn over £150,000 I wouldn't bother. I'd just take the rest of the year off or something.

However if the basic rate of tax ever did go up to 30% I'd be very very tempted to move country.
 
mattheman said:
so your looking at 42% taken from you then your left with 58% for all other expenses like council tax etc.. how would you afford to live?
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What you really mean is the government are nice enough to leave you 58% of your salary left to pay all their other taxes with, council tax, car tax etc etc!!!:p:p
 
mattheman said:
so your looking at 42% taken from you then your left with 58% for all other expenses like council tax etc.. how would you afford to live?
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So i'd lose an extra 10% on earnings between £6400 to £43,800pa. Thats equates to an extra £3750 per year in tax payable.

It would suck, but what else would anyone do? Live on the street?
 
I'd move.
take into account your tax on earning 30%, tax on savings 10-40%, tax on spending 17.5%. You'd have 12.5% of your wage left!!


p.s. I know you wouldn't, but still, it's shocking the amount you pay out to them!
 
mattheman said:
so your looking at 42% taken from you then your left with 58% for all other expenses like council tax etc.. how would you afford to live?
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there are a lot of people here who are in the 40% bracket already (plenty well over the 40% threshold).... whats your point?
 
As mentioned what would you do? Attempt to live on JSA?

Of course you would work. Although you may decide to work less because at some point you value your leisure time more than the after tax wage you'd reccieve.

The actual answer requires a slutsky equation decomposition combined with discontinuities in the tax schedule.

http://en.wikipedia.org/wiki/Slutsky_equation

At lower incomes you will get dicrete participation effects which depend on your own preferences and how generous the welfare system is for someone in your situation. So if you are single then you get very little.
 
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Morba said:
there are a lot of people here who are in the 40% bracket already (plenty well over the 40% threshold).... whats your point?
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He is saying an extra 10% on top of the 20% basic rate, so a 40% tax payer would pay the extra ~£3750 due on the whole increased band.
 
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