Are taxes too high?!?

[RedneckStumpy]

As a Brit living in the US I often get asked about life in the UK. Last night I Went through the usual discussion, then was asked what the taxes were like. So I outlined income tax and sales tax and was challenged with a question that stumped me.

Why would you bother trying to better yourself?

Taxes in both the UK and the US are MUCH TOO LOW

that is why both governments run eye watering levels of government deficits

and UK taxes include universal healthcare, unlike the US

@Ta1kinpeace couldn't agree more. People want Scandinavian level public services on a US level tax system, not possible.

I also think our taxes are too low.

You obviously didn't explain it accurately then.

I agree with Ta1k - I think both systems are too low. And I say that as someone who struggles financially month to month - I would still pay a few % more tax if I thought it could help "fix" some things in the UK.

The other thing is, the tax bands are arranged so you are never worse off. (At least not when taking just one source of income into account). So when you go from 20% to 40%, you are still tax 20% on all income under the 40% threshold, then 40% on earnings above that.

Agree with the above. I would willingly pay more taxes for a better health service, to help our severely underfunded education system and for better emergency service provision.

Agree with all above posters.

You think someone earning £200k is so heavily taxed it’s not ‘worth’ then earning it? Please.

I’d rather pay more and have the health and care services properly funded.

The US is a joke - the inequality and disdain for supporting those in need is disgraceful.

Well, how exactly did you explain income tax in the UK?
Every single pay rise that I have had in 30 years has left me with more net pay in my pocket.
So why wouldn’t I try to “better myself”?

Yanbu.
An £80k salary is knocked down by tax and the costs incurred with having an £80k job, to result in barely a difference in disposable income from a £15k salary which is topped up through benefits and added to with free this and free that.

And that’s before the fact that I’m PROUD to be a net contributor now.

UK taxes, particulary income tax, national insurance and council tax, are too low for the services we want. It's difficult to explain to those without a system of universal healthcare coverage about the social contract that was made after WW2 between the state and it's citizens.

I think they're too high personally. Way too much of my salary is taxed.

High taxes in the UK is why Louis Hamilton left the country.

@arethereanyleftatall you do talk nonsense. Anyone who earns average wage or more everytime they get a reasonable pay increase gets more money in their pocket. It is up to that person if they then decide to up their spending because they think they deserve a life style.

One of the things I was told by many people after being a student is that if I had any debts e.g. credit card, bank overdraft and got a pay increase then use the money to pay off the debts instead of increasing my spending.

An £80k salary is knocked down by tax and the costs incurred with having an £80k job, to result in barely a difference in disposable income from a £15k salary which is topped up through benefits and added to with free this and free that.

Bullshit!

arethereanyleftatall - well go for the £15k job and lifestyle, then.

Who is Louis Hamilton?

And rich people moving overseas to avoid tax is the biggest failing of the world economic system.

The sooner the UK and US grow up and refuse to recognise tax havens, the sooner inequality will reduce

nobody NEEDS £45 million pounds a year
therefore those rent seeking at that level deserve to be taxed

An £80k salary is knocked down by tax and the costs incurred with having an £80k job, to result in barely a difference in disposable income from a £15k salary which is topped up through benefits and added to with free this and free that

Can you provide figures to back this up?

Why would you better yourself? Because it's lot easier being on £89k and paying tax than it is trying to raise on kids on NMW.

@arethereanyleftatall BOLLOCKS. I'll keep my 90k job and pay the tax thanks. 15k does not give you the same level of income.

Tax is an emotive subject

Services have to be paid for, one way or another.

Those that can, avoid it by various men’s so the Government ofvthevday, go for easy pickings.

Target the waste in government would be a goof first step

Men’s!!

Means, autocorrect grrr

Tax is not necessarily too high on its own, when combined with national insurance, student loan repayments and pension contributions it does severely limit the incentive to work for many (40%+12%+9%+9%+whatever is at least 70% for higher rate taxpayers who have done both an undergraduate and masters under the current student finance system).
Inheritance tax is also too high and encourages people to think short term meaning people have less money available for care costs.

£80k take home is over £4,500

£15k take home is around £1,130

You think benefit top ups amount to over £3k a month?

Be cause it's not about 'bettering' yourself it's about making a better society for everyone. Both country's taxes are too low.

Target the waste in government would be a goof first step
Sorry but as a tax accountant
the waste in government pales into UTTER insignificance compared with the billions and billions and billions stashed in offshore bank accounts.

If all of the Caribbean islands and Delaware and the Channel Islands and the Isle of Man and Luxembourg were forced to allow profits to be banked where they were earned
the tax take of the Western world would clear a huge chunk of deficits

Austerity is a political decision, not an economic one

One of the 'reasons' that some (JRM and the ERG particularly) are so keen on Brexit is that I think around May next year more rigorous rules about 'tax havens' are being introduced by the EU, so they want 'OUT'.