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.

Right so it will make it easier for those from other parts of England to buy 2nd homes or properties to invest in, in the north. Marvellous, what an excellent plan.

I do hope Caps you'll judge any non Conservative Chancellor on results 9 months after a budget and similarly ignore the financial markets.

lol

You can think of it like that…though unlikely.
more so people in the north will need to take out 10% less mortgage on a 250k home.

You have to admit it's a cunning wheeze. They've been in power so long they can no longer blame Labour for all of the problems, so they just blame last years Conservative government instead.

And people fall for it.

But will have to pay interest rates that are 5% more due to the governments policies.

Yes I can see that working well.

The UK has the fourth highest marginal income tax rate in the world, at 63.25%. Just behind Finland and Portugal, but quite a way from Belgium's eye-watering 79.5%. That's just marginal rates though. To be honest it would be more effective if the government concentrated on flattening out those instead of removing the 45% rate. High marginal rates are far more of a drag.

The UK's tax bands are broadly similar to France (who apply a 45% rate above €157k, in the UK it's £150k). The big difference however is that in France, income is considered by household rather than as an individual, so your thresholds are effectively averaged out between you. Therefore a couple would have to earn €314k between them before being charged the 45% rate, which makes a big difference if you have one very high earner and one low earner. Children are included too (though at a half-rate for the first two), so a household with two adults and two kids would have to earn €471k between them before hitting the 45% threshold. So assuming that the kids aren't working each adult can earn €235k without paying the 45% rate.

There has been (since 2012) a 3% surcharge on incomes above €250k, and 4% on incomes above €500k. Remember though that in the UK there are NICs on top of Income Tax which at that level are 2%.

I've seen nothing mentioned on Capital Gains Tax. I'd like to see that move over to the Australian system, where capital gains are treated the same as income. Inheritances are taxed based upon capital gains too, which seems fairer.

1 day move in the markets (2% move vs all currencies excluding the Dollar), is noise….if the pound keeps falling to below 1, then that would be a concern.

What do you mean exactly when you say the North? Which bit of England? I’m not trying to be difficult - it’s a genuine question. Also, there are lots of very expensive areas in the North of England where a saving of £2.5k really isn’t going to go very far.

Probably 3% more….but the reason rates are going up are due to inflation that was caused mainly by the war in same rates in USA, Australia, Europe beginning to increase rates….next thing the tories are to blame for global inflation and high rates

Denmark was top for years.

you are paid to go to school (University) and during that time you have the option of paying unemployment insurance. This insurance will payout a livable amount of money for up to 2 years after leaving University if you are unable to find work.

Even 6 figure salary earners think this is irresponsible. Public services are needed and they’re not for free…

Interests rates are going up. Obvious thing is to save more again. The money won’t go back into the economy. It’ll be saved. That’s obvious

Are you saying that inflation and interest rates have gone up by similar amounts in other countries?

the Red wall counties…..no idea, but the average home in the north of England will be significantly lower than the south.

average house price on North is 150 to 200k. So there will be a very good saving there.

@Caps0218 I think the government are being criticised for global inflation and high rates because:

a) this country is going through massive inflation at the moment that doesn’t seem to be going down (we’ve now had high inflation for over 6 months) and the government really doesn’t seem to be controlling it well

and b) if you mean high interest rates by ‘high rates’, again, the government is doing a very poor job of controlling these.

USA - inflation 9%
Australia - 7%
Europe - 9%

rates similar in the first 2, Europe starting to raise rates.

Here's a curious thing. The rate of inflation in France is about 6% but in the UK is about 10%, I wonder why that could be?

The government are trying to prevent stagflation, hopefully these new measures will boost growth, interest rates will help to reduce inflation and we will have sub 5% inflation by end of next year.

So all lower than the world leading UK. Well done us.

@Caps0218 Why has the same government for the last 12 years been trying to create stagflation?

Is the average house price really £150k to £200k in ‘the North’? Do you have any links to show that? I think you should do a bit more research before making statements like this. It just comes across as if your post is lumping together everyone in the North in one giant category.

France unemployment is 7.8%, UK is 3.6%.

germany inflation is 8%.

They are lower are they started raising rates earlier than we did.
the energy cap will help significantly, and we should see a fall soon.

How are you defining the North?
Average house price sold in this northern county in last 12 months is £266,238 and in this district is £373,015

So the difference is perhaps our incompetent government? Or is it something else?