To not want a Tax cut with the expense of the poor

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The Tories want to cut £12 bn of welfare. Aibu to not want a tax cut at the expense of the poor.

I doubt we will get a tax cut, somehow!

Don't worry then, that's not happening.

A tax cut is happening Osborne is bringing the 40%tax rate up to £50000

Yes, but that's not at the expense of the poor. I don't see the two things as being related. It is right that the 40% tax rate is raised. Higher rate of tax should be paid by the rich, not by people who still have to budget.

And even at £50K you are not rich. Comfortable maybe - rich. No.

Remember though, you are always welcome to write a cheque to HMRC if you feel you would like to pay more tax. .

Tax cut for savings too - first £1000 of interest is now tax free instead of subject to income tax.

So people with about £100,000 in the bank and a high income get £400 tax cut.

People with less money in the bank and lower income get anything down to £0 tax cut.

No problem with a tax cut just make sure that it is funded by tax avoidance not a further assault on welfare

Austerity™, innit.

I'd call myself a middle earner. I think middle and top earners need a tax rise rather than a tax cut. The Coalition spending cuts have hit the poorest in the country and if they get back in, the poor will keep getting poorer and the rich bastards who got us into this mess will keep on getting richer.

rich bastards

Nice. Nothing like wearing nasty prejudice on your sleeve.

Those savings, by the way, will - for the most part- have already been taxed once when earned nafd probably at 40%.

It's the income from the savings that attracts income tax, not the capital.

So no, not already taxed.

Erm, how do you think the majority of people get savings? By putting away earned i.e already taxed income.

Which is why the tories want to stop taxing it twice.

Cariadlet, if you want to give more of your money to the people you think need it most, then you are free to give it to them.

Super suggestion, Ptolemy.
I expect she is away doing just that right now

Only basic rate taxpayers get the £1000 savings interest tax free, higher rye tax payers get £500 and if you earn more than £150k you are taxed on all of it. Administratively it will also be easier.

It also means for low earners they can invest in non-ISA high interest accounts and get the return tax free so it gives more choice.

cariad you are aware, aren't you, that the poor actually got poorer under Labour?

You are also, I'm sure, aware that The Rich now pay more in tax than they did for 13 years under Labour?

The capital may (or may not) have been earned by working.

The interest is unearned income. You put it in the bank, they give you money.

I've just inherited a lump sum - I'm making money from it by sitting on my arse. The hardest thing I've had to do to earn this was drink a cup of tea in the bank while we discussed which dotted line I should sign on.

[Disclaimer: both my income and the lump sum are so small I don't pay income tax anyway. But had it been a larger inheritance, I would still have done the same amount of work for it.]

Everyone who works is getting and has got a tax cut - the personal allowance is going up again...
Which means for the last year the part time workers I do the wages for haven't paid tax - not a penny. (NI is a different story and I wish they'd tackle that -only paid term time means that occasionally they do get stung for NI which they can't get back)
And if you work 30 hrs a week on NMW you will be paying about £30 a year tax at current rate ...compared to almost £800 at the 2009 rate (assuming they earned the same as they do now - so not taking into account the NMW rate as it was then) ...ok people who earn more benefit too but on a percentage earnings basis it makes a greater difference to the lowest paid workers. And more sense than the 10% etc rate - this is keeping it simple!
(I love this - I hate having to take tax off people who aren't paid a lot anyway ...)

Don't spoil a good rich bastard bashing with facts, now build

Everyone who works is getting and has got a tax cut - the personal allowance is going up again...

Not true. Those earning over £100K get no personal tax allowance.

Actually quite a lot of MNers are busy giving their money away to people who need it, if the food bank threads are to be believed.

Many of them very low earners.

I wonder how many people from this thread are doing the same.

Shame food banks are such an inefficient and inadequate support for the poorest.

Eds -I don't do the wages for anyone who earns anywhere near that much!!!! - But if that is the case - even better news!

Thanks for that, build, I'm glad to see it is at least staggered. So only £200 pa tax cut for higher rate tax payers with large lump sums.

Agree. People should be given a living wage

pausing that inheritance was likely earned by someone ...who had paid tax on their income ... it is the result of someone you most likely cared about working and saving to put something aside for their 'old age' and to look after you when they can no longer do so in person ....