Income tax - top 45% rate scrapped! Bonkers!

[HoppingKangaroo]

The 45% top rate of tax (which currently applies on earnings above £150,000) will be scrapped entirely. How will this help the economy? It will just add to the government debt and it just helps out the very weathly.
Why not have more help for the poorest in the country and not have tax cuts for the very wealthy.

Oh, there it is, the benefit scroungers canard.
You say 'subset', I say 'vanishingly small number, so small as to not matter.'

Deutsch Bank is now predicting 5.5% interest rates next year. Good luck to anyone with a variable mortgage.

Mmm from what I have read they are not scrapping it entirely they are reducing it from 45% to 40%. Some people still won’t agree with this but a bit misleading to say scrapping it entirely!!

If only doctors could have a different tax/pension arrangement. I know this wouldn't be workable - thin end of the wedge and all that.

The title doesn't say 'entirely'.

But the first sentence does, so fair!

The Tories are only interested in helping the wealthy.

Oh, there it is, the benefit scroungers canard.
You say 'subset', I say 'vanishingly small number, so small as to not matter.'

I'm not sure if the £8.6bn lost to fraud in 2021 was vanishingly small. Although that was over double due to pandemic fraud. Still not an insignificant number though.

I despair, I just cannot believe they are doing this. Using tax payer money to make the rich, richer.

We are fucked

I assume the retort will be, no one does that. £8.4 billion last year in benefit fraud, that we know of

Exceeded by the amount of unclaimed benefits.

To quote the rationale provided in the "Growth Plan":

From April 2023, the basic rate of income tax will be cut to 19% and will mean 31 million people will be better off by an average of £170 per year. Due to the combined impact of the reversal of the HSCL and the reduction of the Income Tax Basic Rate, someone working full time on the current National Living Wage will see a tax cut of over £100.

Alongside cutting the basic rate of income tax, the Chancellor also abolished the additional rate of tax, taking effect from April 2023. In its place will be a single higher rate of income tax of 40%. The policy removes the UK’s previous top rate tax, which was higher than countries like Norway, USA and Italy, and is designed to attract the best and the brightest to the UK workforce, helping businesses innovate and grow.

The argument is that the banker's bonus cap didn't actually cap banker's remuneration, so all it does is provide HMRC with an admin burden.

I was very surprised that they scrapped the 45% higher income tax rate. It seems they are trying to compete with other countries to encourage high paid workers to move to the UK. If it works, the overall tax take might increase.... but it's a big if.
Not sure why you think cutting corporation tax rises only helps the rich?

Won't they benefit from the cut in the basic rate of income tax and the abolition of the NI hike?

Here (Denmark) the highest is, this year, 65.90% and the normal Personal Income Tax.RATE is 56.90% on income like labour, pensions, interest and dividends. And on social security benefits.

Finland is slightly higher at 56.95% and Japan a tad higher at 57.9%.

Worldwide, there are at least 5 countries that do not have personal income tax. But, they aren't the places I would visit, let alone live. (that is only my opinion, I realise other Europeans live there happily)

An unnamed tory MP (so take that with as much grain of salt as you like) has briefed journalists: "we've just filed the UK for bankruptcy."

£8.6bn that we know of. I agree, this is not a small number and vastly outweighs the £2.2bn it will cost to reduce income tax on those who earn > £150,000 / year. But its much easier to 'bash the selfish rich' that look at the flaws in our society which benefit dishonesty and encourage people not to work and contribute

I'm afraid this is more common than many would like to believe and this does not include people who 'play the system' so that they legally can claim support that they are not morally entitled to.

personally I would like to see a basic living allowance given to every single person of working age, if you ant more you work for it,, if not you make do... like the experiments done in Finland a few years ago. www.theguardian.com/inequality/2018/jan/12/money-for-nothing-is-finlands-universal-basic-income-trial-too-good-to-be-true
.

I wonder if Rishi regrets knifing Boris politically?

i would have picked Rishi over Liz Truss if I were a Tory member but he got so much hate because he was rich, I suppose if any of them looked at this site, they’d have assumed he was unelectable. But people really hate anyone who isn’t poor on this site. The vitriol directed at “the rich” is so unproductive - they pay a lot of tax. Let’s keep them and their tax here. They will hopefully continue to spend in restaurants and with small businesses.

I don’t earn enough to pay tax and at this stage, I’m insanely grateful for the price cap - I was really panicking when it said 50p a KW for Oct and up again in Jan. The £400 for energy will mean that if I’m really really careful I can put the heating on when it gets to 5 degrees or below. The £150 council tax rebate felt like a windfall. I cancelled my TV license to free up more cash.

For me, personally, it will be manageable because of these payments and I can just get through it with a lot of pasta and tinned tomatoes. And I don’t mind confessing to being quite relieved alcohol duty won’t go up further as my treat bottle from Aldi is one of the few things I look forward to..

@SleeplessInEngland when you look at the level of borrowing compared with expenditure, the unnamed Tory MP is not far wrong. Today's announcement increases government borrowing this year by 50%.

Hurrah, someone talking sense

The trouble is that work, for many, doesn't pay enough to cover bills/the rising cost of living.

The hit they'll take from Inflation will wipe that out and more.

It's a bit more complicated than that. In fact it barely qualifies as true: fullfact.org/economy/did-cutting-50p-rate-tax-raise-8-billion/

They're not using taxpayer's money, that would be bad enough. They're borrowing money to make the rich richer.🤯

Liz Truss clearly hasn't seen Kevin Bridges

A very good question....