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Income tax - top 45% rate scrapped! Bonkers!

1000 replies

HoppingKangaroo · 23/09/2022 12:29

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.

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Am I being unreasonable?

AIBU

You have one vote. All votes are anonymous.

Isyesterdaytomorrowtoday · 23/09/2022 13:16

Unless you’re in Scotland.

I wonder if employers will have to start paying a ‘Scotland weighting’ to attract talent in the way a london one exists.

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beguilingeyes · 23/09/2022 13:17

'We don't care about the poor..they don't vote for us'
The Tory philosophy in a nutshell. We are just the great unwashed to this government.

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Threadkillacilla · 23/09/2022 13:19

Who is voting YABU? I thought trickle down had been thoroughly debunked now?

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Indigoo03 · 23/09/2022 13:19

Why not just 1pc deducted from all income tax bands? I'm wondering if cutting to 39pc costs way more than 5pc cut on the additional 45pc rate...1pc wholesale benefits everyone working wage above nil rate

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inheritanceshiteagain · 23/09/2022 13:22

My Tory voting DH has just said this has turned him socialist!

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Anonymouslyposting · 23/09/2022 13:22

DH and I both earn over £150k and even I think it’s insane.

I can understand trickle down in theory but when we’ve got massive inflation and a cost of living crisis it really doesn’t seem the time to make ideological tax cuts…

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Xiaoxiong · 23/09/2022 13:22

Whammyyammy · 23/09/2022 13:02

Thought most of MN were 6 figure salary earners, so this thread should be one of joy....🤷‍♂️

Because some of us with 6 figure salaries think it's a bad policy.

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Popaholic · 23/09/2022 13:23

@Whammyyammy not all high earners believe in increasing wealth inequality and the life chances of our children by letting the very wealthy get away with a reduced tax burden.

It is indefensible.

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MarshaBradyo · 23/09/2022 13:25

beguilingeyes · 23/09/2022 13:17

'We don't care about the poor..they don't vote for us'
The Tory philosophy in a nutshell. We are just the great unwashed to this government.

They need the middle though to win

Just the top earners won’t do it

Seems madness on that count alone. Nearly all of the population are looking at the bigger cut and not included

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red4321 · 23/09/2022 13:26

At one point, I recall that the 50% marginal tax rate (introduced by Osborne?) cost the government more to administer than it received in revenue.

If this is still the case, then I understand it being scrapped. If it's not, then it's more controversial.

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FinallyHere · 23/09/2022 13:26

Whammyyammy · 23/09/2022 13:02

Thought most of MN were 6 figure salary earners, so this thread should be one of joy....🤷‍♂️

It's entirely possible to be successful in a role which pays well, even lavishly, while still have eyes to see the poverty which is still around us everywhere.

Unlike eg Rees-Mogg who married into money and loves to ape the manners of the really rich and landed. It's painful to watch

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MarshaBradyo · 23/09/2022 13:27

sst1234 · 23/09/2022 13:11

Tax take increased by £8billion when the 50% rate dropped to 45%.

You could either make hysterical, hyperbolic statements or look at the evidence. I’m sure most people here are in former camp.

Optics aside, they need something from it so if tax take goes up then we’ll see

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Luckydip1 · 23/09/2022 13:27

This is a great budget which rewards success.

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Ohtsd · 23/09/2022 13:28

It's probably cheered Holly and Phil up a bit

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JamesBondOO7 · 23/09/2022 13:29

Good luck to them. We've never earned more than 50k in a year but good luck to higher eearners.

Are you aware anyone earning above 100k and then more than 125 has NO tax allowance?

You can't keep on giving handouts to those on benefits and or low wages.

The whole system has to be working for any country to prosper.

Liz Truss is going to f up the country and possibly get us nuked

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MrsBennetsPoorNerves · 23/09/2022 13:29

MintJulia · 23/09/2022 13:03

The reason given is that they are trying to tempt back high earners who have chosen to live elsewhere to avoid high tax rates. Footballers, racing drivers, film/music types etc

I'm not convinced.

Perhaps there should be some monitoring of this, and if the number of high earners coming back to the UK doesn't cover the cost of this tax cut, then the front bench can start paying it back themselves in monthly installments until they die.

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IrisVersicolor · 23/09/2022 13:30

I think we have to bear in mind how incredibly stupid and weak Liz Truss is, which is why she was voted in. She and Kwasi are in thrall to the swivel-eyed loons.

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MrsBennetsPoorNerves · 23/09/2022 13:30

Luckydip1 · 23/09/2022 13:27

This is a great budget which rewards success.

Which is another way of saying that it helps the rich who are in the least need of help.

🙄

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shropshire11 · 23/09/2022 13:35

We used to have 98% marginal rates of tax in the 1970s. All this achieved was causing people to either a) leave the country, b) stop working above a certain threshold, c) use tax avoidance schemes.

Rinsing the rich feels good, but the highest-earning already underwrite the vast majority of the state's expenditure. If you keep increasing taxes, you actually reduce the amount you collect.

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HoppingKangaroo · 23/09/2022 13:35

This is a great budget which rewards success. is this genuine or sarcasm?
Are you aware anyone earning above 100k and then more than 125 has NO tax allowance? the poor dears, good thing this new budget has come in otherwise they may really stuggle this year 🙄

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Fishandchipsupper · 23/09/2022 13:37

It’s insane, I really wish sensible Rishi was prime minister, he at least knew basic economics. Trickle down economics doesn’t work and the additional tax from bankers in the city isn’t going to scratch the surface of the debt the government is getting us into with this budget.
They are kicking a debt problem down the road. Theresa May needs to tell Liz that the magic money tree doesn’t exist. The Tories are usually the party of caution and sensible spending,
thank god they still know what a woman is.

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SnoopLabbyLab · 23/09/2022 13:39

I understand the intention to release money into pockets to provide fiscal stimulus. But I thought that lower earners spent a great proportion of their income. Therefore, wouldn’t a tax cut for lower paid earners make more sense? Especially given the larger volume of lower paid workers. Not to mention any moral case.

I don’t buy the argument that this will incentivise people not to leave the UK. In my experience, it takes a lot more than saving ten grand a year to incentivise people to leave their home, job, family etc. Not least because relocating is hugely expensive. In fact, the primary reason I’ve come across for people relocating has been Brexit. Our circle is full of bankers, hedgies, business owners etc. and they don’t just come and go between countries as this policy suggests.

As you can tell, I’m no economist. Any enlightenment gratefully received.

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lightisnotwhite · 23/09/2022 13:39

I was listening to a report on Kwasi on Radio 4. He’s incredibly clever apparently. I would love to know how he came up with this crap. Just why? (possibly it’s the sector they can cheer up as public service workers, the poor, the middle class are all fucked off atm)
And I never minded the Tories.

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Dannexe · 23/09/2022 13:40

Deguster · 23/09/2022 13:13

@Dannexe they haven't done anything about pension taper relief - that is what is needed to persuade doctors to work more hours.

DH is not happy but I suspect LTPM was not keen to draw attention to the enormous NHS pension while people on ordinary incomes can't afford to heat their homes.

Exactly. I think they’ve done this instead because they can justify it by saying “trickle down”

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Quincythequince · 23/09/2022 13:40

HoppingKangaroo · 23/09/2022 12:29

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.

They want people to spend more. Those at the top have more to spend.

Dont confuse disposable income of higher rate taxpayers to ‘very wealthy’ people, who this really won’t make any difference to either way.

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