To think that taxing high earners even more would actually be a bit unfair?

[bubbleymummy]

I hear this suggested a lot on mumsnet and I really disagree with it. High earners are paying a huge contribution in tax already - thousands and sometimes 10s of thousands more than a lot of people who are clamouring for them to be taxed even more! Why should they be punished for having a highly paid job? How would you like handing nearly half your income over to the government? I think we should be thankful that we do have high earners who are already making a significant contribution. We would be a lot worse off if we drove them away with higher taxes!

Up to 50 per cent tax in uk then 20 per cent vat.

15 per cent in Singapore and much lower gst at 7? Per cent.

Choice of office bases. Very hard to see a reason to stay. Over 10 years that would be a loss of 750k tax and to uk for both of us.

the balance in taxation lies in keeping taxation fair, and keeping people keen to earn more (and be taxed as residents of this country)

when the UK had a 90% tax on high incomes, that was a disasterous policy that drove high earners overseas.

its been about right recently.

You only pay 40% on the earnings above the 37.5k, the earnings before that are taxed at 20%

rina- I'm not defining 'poor people' for goodness sake! There are some people who can't afford to pay any tax and I don't have a problem with that. I am going to clarify that I am NOT having a go at anyone who earns below whatever threshold- I am complaining that 'tax the rich' is not a great or fair solution.

YABU.

And don't forget that "higher-rate tax payers" only pay higher-rate tax on what they earn above the threshold amount which is currently £37,400.

For everything they earn up to and including that level, they'll pay the basic rate of 20%

Its only 40% on the bit above £42k and 50% on the income over £150k (also because you loose the personal allowance at £100k its 60% on the income between £100k and £112k.)

The problem with taxing the super rich (say those on more than £250k) is that there aren't that many of them AND many of them can leave - and many of them employ etc other people.

We both have good jobs but its not luck, we both have middle class parents who paid for our private schools, university education and guided us to getting good jobs.

I don't have a problem with taxing the well paid more, even if it hits us but I do have a problem with the current level of benefits for those who are not actually poor (ie those who can still afford cars/holidays ie luxuries). Of course there should be a safety net (esp for the most vulnerable), but I have a problem with all the benefits for those on middle incomes.

Cross-post FabbyChic :)

bubbleymummy

Well who else will pay taxes? I can't pay taxes. There are people for whom 5k is as much as they can afford to pay in taxes. If you are earning more, of course you must pay more in tax! If we need more tax money then we need people to pay more! I'm sure you'd prefer not to pay tax but we can't all not pay tax, y'know?

Changeisagoodthing

Do you mean live in Singapore or just base the company there? There was a fairly recent story about a British man who moved there, published a book critisising the fact that they have the death penalty and no trial by jury and then was convicted of "challenging the integrity of the Singapore judiciary" :| We pay higher taxes here (well, we, as I've said, I don't personally) but I think what we get can't be measured so easily.

Tbh the only people I hear moaning are those who are think the high earners aren't paying enough tax!

I think 50% for over 150k is high enough and the 40% threshold should be higher than the current 37.5 k

YANBU. Those who contribute so much already should be celebrated and everything done to encourage them to provide more jobs and growth to Britain.

Instead, driven on by the left-wing media of the BBC and Guardian, we vilify our achievers, and discourage aspiration.

The best people can choose where in the world they work. We should do everything we can to bring them to Britain.

Lowering tax rates can increase tax take. We saw it happen in the 1980s. We should do it again.

I think anyone who has educated themselves (often paying back huge student loans), worked extremely hard and has a high-paying job - deserve every single penny and shouldn't be penalised through tax, for DARING to be educated and to achieve. Often you reap what you sow.

There can't be that many earning £150k anyway so I don't think it would really bring in that much revenue. Besides high earners (DH and I are not) can always leave the country.

TBH I think the tax levels are about right.

I too am a little weary of hearing some of the comments from people who seem to think higher rate tax payers are just lucky bastards who swan around in high status jobs, not really working that hard, and living in huge great houses.

The reality is that many people who pay a lot of money each month in tax work EXTREMELY hard, in careers which are pressured and challenging. Often the sort of career that many people, if they are honest, don't want.

I don't think its mainly 'luck' that I have a well paid career. An element of luck, yes, that I am reasonably intelligent, but a bigger element of hard graft. It wasn't 'luck' that I decided to work hard at school and University. It wasn't 'luck' that I decided to invest in further career training, even though it meant years of living in terrible, unheated rented flats, rather than get the immediate cash from a job. It wasn't 'luck' that I took minimum maternity leave, and went back to work when my first child was 12 weeks old. It wasn't 'luck' that I moved to where the jobs were. It isn't luck that I've applied for promotions at various points in my career.

TBH, if high rate tax payers were hit any harder, I think you'd find people would just work fewer hours, or take on less challenging jobs. Let's have a little honesty here - not everyone WANTS to have a full time, pressured job. There are frequently threads on MN from people saying they want to work part time, or take their foot off the pedal career wise. Horses for courses.

rina- sorry that should have read 'tax the rich more' which seems to be several people's solution at the moment! Of course people who earn more should pay more but I think 40% of an income up to 150k is quite enough! Several people suggest increasing that to 45-50% and I just think that is unfair.

Rinabean

Singapore was just an example. In some countries taxation is even less. Many companies that operate globally give a choice of office bases and being based abroad can avoid uk tax.

There are plenty of people who are intelligent, have degrees and pressurised jobs and have worked extremely hard to get where they are, but just don't happen to be in a high-earning field. I'm not sure why some people equate these things with high earnings, as there is not much of a correlation there. There are also high earners who are not particularly well-educated and don't work especially hard.

Poor little rich boys stuggling by on £150,000.

For those on low wages or trying to get off benefits, the equivatent tax rate is 95%.
The government has finally seen how this is a problem so is kindly reducing it to 'only' 65% tax. Stick that in your aibu.

Violethill - I couldn't agree with you more. Both myself and husband are paid well but both have stressful careers involving a lot of responsibility. We both come from council estates and have worked bloody hard during our lives and sacrificed a lot. That is what a lot of people don't seem to understand.

Wow! I'm really surprised that so many people agree with me! I thought I was going to get absolutely flamed! :)

Totally agree with the first point Planet.

And yes, there are some high earners who are not well educated, and don't work especially hard, but tbh it begs the question of why isn't everyone doing whatever it is they do?! If its that easy, and you don't need qualifications......?

I think if you look around at various careers, anything where you are a HR tax payer is likely to mean a high level of education, and a lot of years hard graft, as well as ongoing pressure and challenge

Lifeinlimbo - sorry I don't understand your point? How are they being taxed 95%?

lifeinlimbo If it weren't for the "rich boys" (presumably you don't think women can be high earners) there wouldn't be any benefits at all.

And we all agree that high marginal tax/benefit withdrawal rates are a huge problem. Why didn't Labour do anything about it? One day Iain Duncan Smith will be spoken about with the same reverence as Beveridge.

somebody earlier asked if you got a payrise from £40k to £45k would you suddenly pay 40% of your salary in tax...

the answer is NO.

you'd only pay the higher rate on the amount OVER the threshold.

without going into the complications of childcare, nobody suddenly takes home less money by getting a payrise into the higher bracket.