Tax questions.. why the banding?
- Thread starter ilcp
- Start date
For each pound earned as it accumulates you pay the same amount of tax regardless of your earnings (generally speaking). Complaining about paying a higher tax on moneys that are above and beyond the point a lower income person is already getting nothing is unnecessary if you take that viewpoint.
Otherwise sure, go for a communist system, equal out the taxes, and equal out the salaries whilst you're at it, no more complaints from anybody (right?).
Otherwise sure, go for a communist system, equal out the taxes, and equal out the salaries whilst you're at it, no more complaints from anybody (right?).
Nobody will be happy about tax until the scumbag leechers who get money for free are eliminated from the system. Change the remuneration model for public sector jobs so that they are comparable to private sector ones, then let's talk. 
Just because you work for a public body doesn't mean you deserve better benefits than everyone else, it just means you care less about making a profit as the taxman is handing you all the money.
Also, not saying people who genuinely need state help shouldn't get it, but help should be in the form of giving a short term leg up to sort themselves out, not to permanently rely on help forever. Good analogy is the "give fish vs teach them how to fish" story...
Oh yeah, having kids does not entitle you to free money. If you can't raise a child without seeking financial help, don't have the ******* child!!
Point is, until we as a nation reach the "nirvana state", there will always be people who think they shouldn't pay tax.
All of you people who think that the people earning £300k are paying the highest tax brackets have obviously never heard of the term "tax efficiency". People on that money can normally afford an accountant who knows many tricks to avoid paying most of the tax they "should" be paying, it's not illegal to avoid tax this way because let's face it, the majority of people who decide its legality are doing the same thing themselves.
Like Rotty said, it is the middle earners who pay the most... let's also not forget that NI tax exists which is a fixed percentage. This is on top of whatever bandings you are in.
Just because you work for a public body doesn't mean you deserve better benefits than everyone else, it just means you care less about making a profit as the taxman is handing you all the money.Also, not saying people who genuinely need state help shouldn't get it, but help should be in the form of giving a short term leg up to sort themselves out, not to permanently rely on help forever. Good analogy is the "give fish vs teach them how to fish" story...
Oh yeah, having kids does not entitle you to free money. If you can't raise a child without seeking financial help, don't have the ******* child!!
Point is, until we as a nation reach the "nirvana state", there will always be people who think they shouldn't pay tax.
All of you people who think that the people earning £300k are paying the highest tax brackets have obviously never heard of the term "tax efficiency". People on that money can normally afford an accountant who knows many tricks to avoid paying most of the tax they "should" be paying, it's not illegal to avoid tax this way because let's face it, the majority of people who decide its legality are doing the same thing themselves.
Like Rotty said, it is the middle earners who pay the most... let's also not forget that NI tax exists which is a fixed percentage. This is on top of whatever bandings you are in.
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You do realise that there are not enough jobs to employ everyone just now?
Change the remuneration model for public sector jobs so that they are comparable to private sector ones, then let's talk.
Oh dear.... you gone and did it now
/awaits Dolph and his "public sector steal money" arguments
This. People earning middle income over £40k pay the highest proportion of tax.
Very high earners can afford good accountants to reduce their tax bill. Example, Mohamed al-Fayed earnt £10m last year and paid only £1m in tax so 10%. He might have paid a firm of accountants £250,000 or more to get it so he only paid 10% tax but well worth it.
I know quite a few business owners earning around £500,000 per annum and they all pay only around 20% tax.
There was a statistic years ago and not sure if still true but a small town in North Yorkshire called Northallerton had the highest average amount of tax paid per head of population. Now you would expect Chelsea or somewhere like that in London to be the top but in reality, there is a very high proportion of people in Northallerton where both adults in a household work and are both "high" earning employees paying tax at source at 40%. Self employed and business owners have a much more lenient tax system and much more scope to (legally) reduce their tax bill. If your an employee on good earnings then your stuffed and will pay tax at 40% (or even 50%)
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