Labours Increase in personal tax over £80k

[OliviaPopeRules]

So Labour have finally announced their 'moderate' tax increase for people over £80k.
These changes mean that if you have a household where one person earns £150k you will pay tax of £58k approx. but if you have a household of 2 people earning £75k you will pay total tax of approx. £37k.

I appreciate a lot of people will think tough shit, you earns lot so screw you but can someone really explain to me how this is not just a tax to punish.

And yes I understand people on lower incomes and disability support and other benefits need to more support and I personally have no problem paying extra tax but this makes the tax system so unequal for couples/ families with only 1 person working.

No commitment to reversing cuts to Universal Credits or Tax Credits either.

Oh I see. You didn't want to debate both sides, you just wanted to have a rant.

I'll pay a bit more.

That's fine and great you feel like that.
But unfortunately a lot of people won't and will move and/or use tax avoidance measures meaning the tax income will go down so there won't be the money to pay for these services. If you don't believe me look at the IFS analysis.

Piglet there has been an earlier commitment to reversing cuts to ESA and other benefits.

Slightly less trips to Waitrose innit

Oh I see. You didn't want to debate both sides, you just wanted to have a rant.

Not sure if that is directed at me but if I wanted to rant why would I bother answering peoples points!
Just because I don't agree with you doesn't make it a rant.

I just meant there's an engagement in people's wider points, or just going on and on about the difference between two working people and one.

I thought this manifesto was going to be completely costed with no unfunded spending in it?

Instead it's full of holes. This has put me right off it. Can't possibly take this seriously.

Piglet there has been an earlier commitment to reversing cuts to ESA and other benefits.

Doesn't matter though. If it isn't in the manifesto the HoP and HoL don't have to stand by it.

HoL have an unwritten rule that they don't tend to argue with things that are in a parties manifesto. If it isn't in its fair game.

Huge, huge mistake to leave it out.

It also won't be in any of the 'costings'

Well that was primarily what I was asking about although I may not have been clear enough in my OP.
Obviously people are free to discuss what they like.

That was always the case though OP as two separate tax payers are entitled to pay at the 30% tax bracket each, also because they each earn under £100k they are entitled to £11500 tax free. This is the case already so you could argue that it is already unfair.

If labour introduce a 45% tax bracket for £80-£150k earners then a £150,000 salary would be taxed £59000 instead of £55,500. That's £3500 extra in tax per year. Not that much.

Happy to be corrected as I've worked this out on my phone so prone to errors

So what's the answer?

From the BBC proposed changes are
£80k - £123k = 45%
over £123k = 50%

So approx. £6k extra per year if you earn £150k (which I don't, just using as an illustration).

The overwhelming amount of people won't be affected by this.

Given the median salary is about £25k.

Taxing is not a punishment. Grow up OP.

These changes mean that if you have a household where one person earns £150k you will pay tax of £58k approx. but if you have a household of 2 people earning £75k you will pay total tax of approx. £37k.

Meh, so what?

We're not quite in the 80k tax bracket but probably will be in the next few years. However we did lose child benefit whereas a couple with a joint income the same as dh pay about 7k less tax and keep it. Unless you want to switch to taxing household income it's just the way it is.

We acknowledge that we're probably in the top 10% of income yet my dh got about £300 tax cut this year. In the meantime dd1 school is losing about 1/2 million from its budget dd2 school about 350k works out at about £500 per pupil.

If we want the NHS, good schools and infrastructure then we need to pay for them. If those of us near the top which is a very wide band won't pay then who will?

All the manifestos are uncosted though. It's just the marketing spin. Tories go for 'Labour can't be trusted with the economy' and Labour go for 'Tories can't be trusted with our public services'. This is just the way they attack each other, and has nothing to do with one side having better costings than the other.

If the Tories were so good at costing, the national debt wouldn't have soared underneath them when they were banging on about using austerity and getting it down.

if you're on a150k a year then 6k is chicken feed...

ohforfoxsake

I guess if I knew I'd probably be a politician rather than moaning on mumsnet :)

I think a tax system that valued a SAHP would be good but will never happen at the moment as it would reduce tax take.
In terms of increasing tax take actually a 1% increase over £35k or so would probably raise more money than what labour has proposed but for obvious reason would not be as popular.

Ah ok i quickly googled and got old articles. My calculations are based on the wrong figures as i thought might be the case!!
Still though OP, there's always more tax being paid if one person earns more rather than two people earning a split of the total as there are more entitlements regarding personal allowance and as the tax increase is staggered. It's nothing new.

To be noted also that they have also pledged a minimum £10 ph by 2020, this will spell the end for tax credits and in work benefits.
Whether it pulls down the millions currently on £10 to £13 ph remains to be seen. It did with the minimum wage.

People talking about printing money and borrowing from the future... have you any idea about quantiative easing or the monumental asset purchase programmes that have been undertaken over the last decade? Labour's spending pledges pale into insignificance in comparison.

Capitalism ran out of other peoples money, see.

More people may be affected by ramping up corporation tax
Less obvious but if small and medium size companies have to factor in this extra tax jobs may well suffer

I'd be interested to see if corp tax is based on profits.