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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.

Parker231 · 23/09/2022 14:02

Luckydip1 · 23/09/2022 13:27

This is a great budget which rewards success.

What about those working multiple jobs on minimum wage or those unwell or disabled - how will this budget them?
Which services will be cut due to less tax revenue? Funding to public services needs increasing not reducing.
This budget is a million miles away from reality.

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HoppingKangaroo · 23/09/2022 14:03

Luckydip1
There has never been a better time to look for a job, lowest unemployment for generations but you have to want to work and not sponge off the state like so many people in this country whilst at the same time moaning about the rich.
Are you a troll or for real? Yes everyone needing help from the government is just some sponge off the state, probably smoking and drinking their benefit money away. Someone who can't work because they need to take care of sick family members/ children or can't support their family on low wages should just be sent to a victorian style workhouse or something 🙄

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Leilu · 23/09/2022 14:06

lannistunut · 23/09/2022 14:01

Yes but you are a member of a tiny minority, this is a mad budget in terms of getting re-elected.

No disrespect but electorally you are not very important - the expectation is you almost all vote Tory anyway, so you are not worth fighting over.

That’s true, but I’m looking at this from what I think is right, not what will win elections.

The top rate has now dropped back to what it was under Labour, which I don’t think was causing them electoral issues.

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Doubledenimrocks · 23/09/2022 14:06

twitter.com/montie/status/1573238591496634370?s=20&t=2--5IHh422GehRWrsjJ3OQ

This is why OP. I thought it was a parody but no ..

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kistanbul · 23/09/2022 14:06

So much of this budget is madness - the world and commodity prices in particular is likely to be turbulent for the next couple of years. Investment requires stability more than it requires tax cuts. That’s what the government should spend money to try to encourage. And yes that will probably involve some foreign aid spending.
I’ve worked in the City with tech companies relocating from low-tax Ireland - they are wanted to move to London because it was one of the worlds great cities. Our competitors were Paris and New York. If the streets in Paris and New York are cleaner and the schools are better, no major companies will move here except as shell companies that do nothing for the UK economy.

And do people think that those earning £150K will be tripping down to Wakefield market to share the wealth?

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nonono1 · 23/09/2022 14:08

From the Daily Mail:

The Chancellor abolished the 45p top rate for around 660,000 people earning £150,000 - saving them an average of £10,000 a year each.

So there’s a cost of living crisis, I can barely afford to heat my home but wealthy people are now going to be 10 grand a year better off?! Fucking hell.

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Doubledenimrocks · 23/09/2022 14:09

Luckydip1

It doesn't reward success. It rewards wealth. I am successful in my chosen career. I don't earn enough for there to be any meaningful impact on me. I would rather be able to have security in old age or just be able to get a GP appointment would be nice

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MrsBennetsPoorNerves · 23/09/2022 14:10

If the government was truly confident that this budget was going to generate growth that would ultimately benefit society as a whole, then why didn't they agree to the OBR (a body created by the Tories after all) to produce a new economic forecast on the basis of this budget? Why are they afraid 9f scrutiny?

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Endlesssummer2022 · 23/09/2022 14:10

'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’

The poor DO vote for them as they have been taught to vote against their own interests.

I was watching the news during the leadership contest and they were interviewing Tory voters to ask who their preferred PM would be and all of the Tory voters appeared to have jobs working in cafe’s or on a market stall.

If the BBC did a vox pop at a Wetherspoons in Stoke on Trent today, the majority of interviewees would still be praising Tories and mumbling something about Corbyn.

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Isthislife · 23/09/2022 14:11

Luckydip1 · 23/09/2022 13:44

In Britain success seems to be frowned upon even resented as unfair. I think we should celebrate success and hard work and reward and admire people that go the extra mile and over achieve.

If you want everyone to have the same amount of money you have communism and we all know how that works out.

This assumes you only measure success on earnings, and assume everyone who works hard and goes above and beyond is paid accordingly. But what about our hard working public sectors workers, without whom society would fall apart. Do nurses, healthcare assistants, teachers not work really hard? Of course they do, but the government doesn't give a crap about paying them accordingly. They're more than happy for bankers to be get bonuses most of us could only dream of but god forbid the people that care for us in our darkest hour should be thrown some scraps.

And as for the stamp duty cuts, as shown before, people will just use that to buy 2nd homes. It won't help a young nurse with a family to get on the ladder as the lending requirements for a mortgage are the same, the lack of ability to save a deposit due to sky high rents and other costs of living, none of those things will change and so the poorer folks still won't be able to get on the housing ladder, all while those who earn more capitalise on it and buy up more houses.

Recent government decisions make me feel ill. This country is going to crap.

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TheYearOfSmallThings · 23/09/2022 14:11

It is fucking outrageous.

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oxydant · 23/09/2022 14:12

I'm very happy about this!

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worriedatthistime · 23/09/2022 14:12

Its not likely to trickle down to most if us is it
Surely raising the point we all pay tax again would help all of us that work
And then targeted help to benefits , pensions
They really seem to want to loose the next election

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MrsBennetsPoorNerves · 23/09/2022 14:13

oxydant · 23/09/2022 14:12

I'm very happy about this!

That says a lot about your character, then.

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Augend23 · 23/09/2022 14:13

Dannexe · 23/09/2022 13:06

As well as general trickle down economics (see also the banker bonus changes), It’s to do with doctors hours and the pension trap. In very basic terms Doctors have extremely good pensions and they hit a point fairly early in in their careers where it isn’t worth them working extra hours.

If this is what they wanted to do a) they didn't need to scrap it entirely - they could have upped it to 200k or 300k or even 500k if they wanted and b) they could have done something about taper relief on pension contributions which I really do think is a very odd tax. They could also put the maximum pension pot back up (they have brought it down from 1.5mil to 1mil over the last decade, and it's not going up with inflation).

All of those are tax cuts ultimately but if what they actually want to do is facilitate doctors working more and for longer then this would be a sensible set of changes. As would facilitating a higher salary instead of employer pension contributions when staff's pots are full.

But none of that helps bankers earning millions as much as this will. 5% on the bit between 150 and 200k is £2,500. If you earn £1M a year then it's 42.5k

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Canany1cme · 23/09/2022 14:14

I think the idea is that lower taxes encourage more spending which (hopefully) will kick start the economy.
Everyone is feeling the pinch. If it is mitigated by lower taxes then higher earners are more likely to keep spending. They’ll keep on their cleaner, gardener, dog walker, nanny etc which generates employment.
Lowering taxes also encourages skilled higher earners to move to the UK.

Trouble is that we’re in such a mess, these measures alone aren’t likely to be enough to fix it.

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bellamountain · 23/09/2022 14:14

TheYearOfSmallThings · 23/09/2022 14:11

It is fucking outrageous.

Completely.

Utter insanity.

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MelodyPondsMum · 23/09/2022 14:14

Truss made it clear she didn't care about the little people. She cares about business, bankers, funders and the wealthy. That's why she went from joke candidate to front runner because the people with money lobbied very hard for her, so they could keep their money.

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SlipperyLizard · 23/09/2022 14:15

They’ve given up any pretence of “levelling up”. All the Govt ministers on the radio today were insisting it isn’t how much of the pie each person has, it is how big the pie is that counts - when what they want to do is give all of any growth in the “pie” to the wealthiest.

It is nonsense, giving more money to the already wealthy will not benefit the poor.

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Incognito19 · 23/09/2022 14:15

Name changed but I am one of those that will “benefit” from this cut and am horrified. I have a great job, work hard etc and earn my salary but am part of a wider society and knowing there are people genuinely terrified about heating/eating this winter I am speechless. I also struggle to understand how anyone sees this stimulating the economy.

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Luckydip1 · 23/09/2022 14:15

I want young people who see someone successful and rich in the UK, to think if I work really hard, use my brains and maybe have a bit of luck I could be rich too, have a beautiful home and holidays abroad and a fab car as opposed to there is no point working hard the state will tax all my income I won't bother.

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forinborin · 23/09/2022 14:16

I will get some relief on a part of my pay as a result of changes (not a lot - around £300 net gain), but I would have much preferred that the threshold for the higher rate had been shifted to £80K as speculated before. Would have helped many more people.

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Leilu · 23/09/2022 14:16

nonono1 · 23/09/2022 14:08

From the Daily Mail:

The Chancellor abolished the 45p top rate for around 660,000 people earning £150,000 - saving them an average of £10,000 a year each.

So there’s a cost of living crisis, I can barely afford to heat my home but wealthy people are now going to be 10 grand a year better off?! Fucking hell.

To save £10,000 per year they’ll need to be on a wage if £350,000. Their tax and NI bill on that will be £157,000, which will now drop to £147,000.

That’s still a lot of money that they are paying in, both in percentage and absolute terms.

They are working for about five months of the year just to pay their taxes, before they earn a penny for themselves.

If you think that paying 45% of every pound that they earn isn’t enough then how much do you feel would be fair?

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SerendipityJane · 23/09/2022 14:16

Not really sure why "Tories deliver Tory policies" is news? Surely people aren't that dim ?

With all the fuss I was starting to worry that the poorest and most vulnerable in society had suddenly caught a break. Which is not what this government is about.

Luckily I didn't need to worry too long. Tory business as usual. Phew !

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worriedatthistime · 23/09/2022 14:17

No help for students either
Ds student loans and money saved won't cover expenses and maitenance based on parental income and apparently stagnant for years the income
Not entitled to CB as no longer a dependant but our wages taken into account as we are expected to cover short fall

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