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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

Labours Increase in personal tax over £80k

438 replies

OliviaPopeRules · 16/05/2017 11:25

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.

OP posts:

Ceto · 16/05/2017 12:09

It blatantly isn't a taxation system to "punish". Tax is tax, the more you earn the more you pay: that's the way the system has worked for decades. Tweaking of tax rates is also the way the system works. By contrast, cuts to benefits increasingly look very much like that.

I'm all for getting rid of the subsidy for businesses that the tax credit system offers.

Original poster

OliviaPopeRules · 16/05/2017 12:09

Imstickingwiththisone

You are correct it was always there .
What I was trying to get at, not doing it very well, was that this increases it further (by approx. £6k I think). Doesn't seem to place much value on SAHP.

OP posts:

InTheRedTent · 16/05/2017 12:09

In regards to self employment, yes there has been massive growth, but the numbers suggest a lot of people didn't actively choose to go into self employment, rather they went into it through lack of other opportunities. One of my parents and myself were made redundant in local government cuts, neither could find paid employment anything like what we had been earning (and these were not higher managerial salaries, just 25-40k bracket professional salaries) and in my case couldn't find anything that would cover my childcare. Both my parent and myself ended up self employed to try to make a living, both still 3/4 years later not making our former salaries even with all our lucrative 'tax breaks' - but we're supporting our families enough to not be on job seekers and that's all the numbers need to show to make a positive news story.

NoLotteryWinYet · 16/05/2017 12:10

my main concern isn't this announced income tax hike, it's what the plan B is when they still can't afford everything they want to do. We could swallow this, DH would probably cut his hours and we'd work on maximizing my salary for the reasons Op stated - but what about the next rise?

CoffeeCrisis · 16/05/2017 12:10

to be fair OP the system at the other end (tax credits) doesn't favour SAHP either

PigletWasPoohsFriend · 16/05/2017 12:11

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.

They wouldn't disappear. It could also lead to more unemployment as for some small business for example it may be too much for them.

It was going to £9 an hour under the current government.

NoLotteryWinYet · 16/05/2017 12:11

yes, it's very clear there this is not valuing having a parent staying at home, and that's a shame and quite possibly not optimal to have 2 parents both working full time + (she says from experience).

JamieXeed74 · 16/05/2017 12:12

The overwhelming amount of people won't be affected by this. Given the median salary is about £25k
Then what is the point of all this massive increase in tax borrowing and spending if he isn't helping those on £25k? There is nothing in this that will help working families that are struggling. Except of course to saddle us with more debt. Not getting my vote.

Polidori · 16/05/2017 12:14

Seriously, Kursk? "Equally poor"? So someone earning £80k+ paying a bit more tax means they are equally poor with those who can't afford electricity every other day and who depend upon food banks? Aw diddums, my heart bleeds.
And no, OP, it isn't punishment. Don't be petulant. It's paying for services.

CoffeeCrisis · 16/05/2017 12:15

What do we mean by 'helping', JamieXeed74? I happen to think that hospitals and schools and libraries and roads are very helpful to people on all incomes.

They make a lot more difference to our lives than a few extra quid.

nInachu · 16/05/2017 12:15

Sorry not crying here. If I was earning that amount of money I'd be happy to pay more tax. How about people who are just managing wanting to be SAHP? I'd love to stay at home and take care of my LO but we cannot afford it.

papayasareyum · 16/05/2017 12:16

Labour in tax the rich shocker.
That's a new one!
We've been a center right country for decades. That's not about to change soon .
Jeremy will be gone soon and in a few years you'll have forgotten what he looked like.

Original poster

OliviaPopeRules · 16/05/2017 12:17

Maybe if the tax system for fairer for couples with a SAHP then you could, if you could pass your allowances to your OH. Works on all levels not just for higher earners.

OP posts:

ChocChocPorridge · 16/05/2017 12:18

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

Not really - on 150k you take home 7.5k a month - so 6k is nearly a month's salary - I don't think anyone would consider a month's salary chicken feed.

RoccoW14 · 16/05/2017 12:19

Some odd comments on this thread, but saying that if you were earning that much you'd be happy to pay more takes the cake! Seriously? What a nonsense statement.. happy to pay more when it won't affect you? How noble!!

CoffeeCrisis · 16/05/2017 12:21

Maybe if the tax system for fairer for couples with a SAHP then you could, if you could pass your allowances to your OH. Works on all levels not just for higher earners.

No, even the maximum £800-odd quid you can swop lower down the line wouldn't pay for a year's childcare. The simple fact is that life is very different at £80,000 a year than it is at £15,000.

nInachu · 16/05/2017 12:23

@CoffeeCrisis exactly!

wasonthelist · 16/05/2017 12:23

I earn over 80K - happy to pay more tax and will be voting Labour.

Jux · 16/05/2017 12:26

So you're just "me me me" as opposed to part of a society for which you have some responsibility?

Redpony1 · 16/05/2017 12:29

It doesn't affect me directly but i still care!

It does affect my brother, who isn't well off even though he earns over £80k, because most of his income goes towards things like saving for his children's Higher Education, so they do not have to start their working lives heavily in debt. It was a big thing for him, working his arse off for one family holiday a year and to save for their future.
Why should he be penalised for more tax just because he has gone above & beyond working his arse off and working his way up to where he is?

I hate the MN mentality of 'they dont struggle to pay bills each so i dont care about them'

ohforfoxsake · 16/05/2017 12:31

I don't get it.

The NHS is fucked. State education is fucked. The middle classes are just-about-managing (or not) the working classes are plunged into poverty. That's the Tories social mobility for you. Homelessness has increased and there is no provision for mental health support. Where's the humanity?

I couldn't give a shit about support for SAHPs. I am one. I'm just grateful for what we have, and hope my children can go to university, that my grandchildren will have quality NHS care, that I won't spend my retirement in poverty and there will be end of life care when I need it.

Blaaaaaaaah · 16/05/2017 12:31

If they had a chance of winning and I was someone in London earning £80k I would be worried. It doesn't take account of regional differences. Someone in London earning £80k is not going to be rich and may have very little left at the end of the month after commute and housing.

lizzyj4 · 16/05/2017 12:31

I'm a high-earner, single parent, running my own company. I receive no CM for my younger kids, and amazingly did not have a SAHP to cover my childcare costs when they were younger (thanks for remembering all us single parents though, Sonnet). One of my adult children has ASD and I've accepted the fact that I will probably be supporting him for the rest of his life. None of us receive any benefits - I may be a high earner, but it all goes and not on luxuries. It seems I'm going to be paying more on all fronts (tax, corp tax, etc.) if Labour have their way. I voted Labour for many years, but this sort of unrealistic, unfair policy is why I no longer do so. They have absolutely nothing to offer me.

Original poster

OliviaPopeRules · 16/05/2017 12:32

So you're just "me me me" as opposed to part of a society for which you have some responsibility?

Yep of course a person earning £150k and currently paying taxes (income tax and NI) of £60k along with employers NI being collected of £20k is all me me me for questioning what they consider an unfariness in the tax system.

OP posts:

Blaaaaaaaah · 16/05/2017 12:35

fox, I would very much say most of the things you describe are things which have their roots in the previous Labour administration. The decrease in standards of living certainly does. And they were the ones who started the process of privatising the NHS.

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