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Original poster

Liz Truss to raise income tax thresholds?

231 replies

GreenLunchBox · 06/09/2022 22:18

There are rumours that she's going to increase the higher tax threshold to £80k. I think this is a good idea and will increase productivity. Sunak keeping the threshold frozen was a sneaky stealth tax. In this time of rampant inflation it's unfair for people to receive a small payrise and find themselves significantly paying more tax than before

It will also help with the rental property shortage as it will help to mitigate the unfavorable tax changes for landlords so less will be likely to sell up

OP posts:
kweeble · 06/09/2022 22:21

Okay so the rich will be even better off - congratulations! Bully for you

Mediumred · 06/09/2022 22:29

This is a crap idea, our public services are already on their knees, I’m a higher tax payer and would Gladly pay at the current level or pay a bit more in order to improve them. Sadly don’t trust the Tories to sort anything out.

blacksax · 06/09/2022 22:31

Oh my heart bleeds for all the poor souls earning as little as that, it must be awful for them.

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General money
Octomore · 06/09/2022 22:32

I'm intrigued by your idea that this will increase productivity. How exactly? By what measure?

BuffaloCauliflower · 06/09/2022 22:32

How in any way will it increase productivity?

Octomore · 06/09/2022 22:33

In this time of rampant inflation it's unfair for people to receive a small payrise and find themselves significantly paying more tax than before

I've just re-read this..... you don't actually understand how tax works, do you?

NoSquirrels · 06/09/2022 22:35

Pfft.

There’s so many weird assumptions and wrong assertions in your post OP that I can’t be arsed.

Jenn3112 · 06/09/2022 22:35

If she makes any change she should raise the personal allowance. Then all people who aren't really wealthy will benefit.

Original poster
GreenLunchBox · 06/09/2022 22:41

This clearly isn't the place for a debate on this subject. Lots of angry replies. So I'll bid you all goodnight

OP posts:
Octomore · 06/09/2022 22:42

Basically, you can't actually substantiate anything in your post, so you won't discuss it?

Seriously - do you think that earning above the threshold means that all someone's income is taxed at 40%? Because that's what your post implies you think!

Octomore · 06/09/2022 22:48

It's scary how many people simply do not understand how tax works, and yet have the confidence to go around spreading their ignorance and misinformation.

MoistBandana · 06/09/2022 22:55

People on that money can buy a bit more tat from Dunelm...
Meanwhile the old, poor and disabled will die.

Still, Tory mindset..
Wealth for the rich more important than the 'little' people.. every single time.

Original poster
GreenLunchBox · 06/09/2022 22:56

Yes I know how tax works.

But any income above the threshold equates to significantly less per hour than the pounds you earned before you hit it. It's only worth being a higher tax payer if you earn a lot above the threshold. Lots of people reduce their hours to keep below the threshold

OP posts:
Original poster
GreenLunchBox · 06/09/2022 22:57

MoistBandana · 06/09/2022 22:55

People on that money can buy a bit more tat from Dunelm...
Meanwhile the old, poor and disabled will die.

Still, Tory mindset..
Wealth for the rich more important than the 'little' people.. every single time.

I'm definitely not a Tory

OP posts:
LemonSwan · 06/09/2022 22:59

She’s bonkers. We are all fucked.

JudesBiggestFan · 06/09/2022 23:01

I agree. £50,000 is a decent salary but not a fortune by any means. I currently earn £49,000 and am deterred from applying for jobs at around the £55,000 mark because £5,000 would be taxed at the higher rate, plus I'd lose some child benefit. It's not worth it. Raise the threshold and I'm more likely to apply for the job, and this will pay more tax than I do now anyway.

Octomore · 06/09/2022 23:05

JudesBiggestFan · 06/09/2022 23:01

I agree. £50,000 is a decent salary but not a fortune by any means. I currently earn £49,000 and am deterred from applying for jobs at around the £55,000 mark because £5,000 would be taxed at the higher rate, plus I'd lose some child benefit. It's not worth it. Raise the threshold and I'm more likely to apply for the job, and this will pay more tax than I do now anyway.

Why don't you apply for those jobs and put the difference in your pension so it's not taxed?

You're cutting off your nose to spite your face.

izimbra · 06/09/2022 23:08

GreenLunchBox · 06/09/2022 22:18

There are rumours that she's going to increase the higher tax threshold to £80k. I think this is a good idea and will increase productivity. Sunak keeping the threshold frozen was a sneaky stealth tax. In this time of rampant inflation it's unfair for people to receive a small payrise and find themselves significantly paying more tax than before

It will also help with the rental property shortage as it will help to mitigate the unfavorable tax changes for landlords so less will be likely to sell up

What public spending cuts do you think she should make to pay for it?

KnickerlessParsons · 06/09/2022 23:11

Jenn3112 · 06/09/2022 22:35

If she makes any change she should raise the personal allowance. Then all people who aren't really wealthy will benefit.

This.

If there starting point for paying tax were raised to £20k/£25k there'd hardly be a dent in total tax income, but it would make the world of a difference to an awful lot of people.

LimboLass · 06/09/2022 23:13

This clearly isn't the place for a debate on this subject. Lots of angry replies. So I'll bid you all goodnight

Roughly translated

'I have no idea whatsoever how it would increase productivity and was clearly talking out of my arse'

Original poster
GreenLunchBox · 06/09/2022 23:14

JudesBiggestFan · 06/09/2022 23:01

I agree. £50,000 is a decent salary but not a fortune by any means. I currently earn £49,000 and am deterred from applying for jobs at around the £55,000 mark because £5,000 would be taxed at the higher rate, plus I'd lose some child benefit. It's not worth it. Raise the threshold and I'm more likely to apply for the job, and this will pay more tax than I do now anyway.

This is exactly my point

That £50k point is a barrier because of this.

OP posts:
Original poster
GreenLunchBox · 06/09/2022 23:16

LimboLass · 06/09/2022 23:13

This clearly isn't the place for a debate on this subject. Lots of angry replies. So I'll bid you all goodnight

Roughly translated

'I have no idea whatsoever how it would increase productivity and was clearly talking out of my arse'

Ok then 😂

OP posts:
Dasher789 · 06/09/2022 23:20

I totally agree op. Im in scotland so we pay higher rate tax from £43663. I earn £50k. It makes me so angry that if i was a hundred or so miles down the road the threshold in England is £50271. I refuse to pay the additional tax so i salary sacrifice all the additional into my pension.

PiffleWiffleWoozle · 06/09/2022 23:25

Rumoured where?

Doesn’t sound likely or credible Truss would do this. What is your source please?

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