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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.

MelodyPondsMum · 23/09/2022 14:17

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.

It's possible to have all those things and pay tax. Ffs

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ForeverFailing · 23/09/2022 14:17

Not that I understand economics so I am ignorant, but what is the thinking behind it? Are the high earners going to boost the economy on behalf of us that are struggling with lower earnings?

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oxydant · 23/09/2022 14:17

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 🙄

Envy doesn't help.

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Luckydip1 · 23/09/2022 14:18

They do already pay a massive amount of tax even after these modest tax cuts.

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Badgirlriri · 23/09/2022 14:18

Whammyyammy · 23/09/2022 13:02

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

😂

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Lassie76 · 23/09/2022 14:18

Agree.
High earners already pay an eyewatering amount of tax. How much more do you want them to pay? The top 1% of earners already pay 28% of the total tax burden in the UK.
However, this is MN where earning a high salary will either get you called a liar or fantasist, or be met with absolute hatred and accusations that you think lower earners are not clever/good people/have worth in society etc.
Lots of high earners I know have no life, they are consumed with working every hour of the day, take no holidays, work weekends, work 18 hour days, sacrifice family for their jobs. Unfortunately someone working in a normal job is not going to reap the financial benefits that they do.

Some people will just not be happy until they are bled dry.

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Leilu · 23/09/2022 14:18

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 !

What sort of break would you suggest? They already receive more in benefits than they pay in tax, so what more should the state be doing?

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Bunnycat101 · 23/09/2022 14:18

As a household we will benefit from the measures today but I don’t think it is the right thing. It is the NI cut though rather than the 45-40% that makes the most difference. I would personally rather keep paying that or more as public services are going down the pan.

We are not the people who will be struggling to heat our homes and are not the people who need a boost.

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KangFang · 23/09/2022 14:18

The Tories are on the rob - well - more so now.
They know that they're going to be annihilated in the next election, so they're on a smash and grab spree while they can.

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Luckydip1 · 23/09/2022 14:20

This country needs to stop resenting people who ares successful and start saying good on them. They are the ones paying massive amounts of tax and they worked incredibly hard to get there and are probably very clever too.

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Leilu · 23/09/2022 14:20

MelodyPondsMum · 23/09/2022 14:17

It's possible to have all those things and pay tax. Ffs

Why are you implying that they don’t pay tax? The top rate has been reduced from 45% to 40%, it’s not been abolished. The highest earners will still be paying the highest tax rates.

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worriedatthistime · 23/09/2022 14:21

I do think those that can work should be being made to work though its not right that some dob't or do minimum hrs . This may be a minority but it happens my neighbour told me he works the min to keep them off his back, fully capable of working
Then maybe their could be more for the disabled and those who genuinely cannot work through no fault of their own

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MelodyPondsMum · 23/09/2022 14:22

It's pretty insulting to imply all high earners want to try to avoid tax. Lots of people who are high earners believe in society - not individualism.
I really wish the idiots who support US uber capitalist, individualistic policies would just move to the bloody US. They're ruining this country and the economy.

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lemmein · 23/09/2022 14:22

Well I earn nowhere near £150k but I'm delighted! Any nail in the tory coffin is fine by me, I truly despise them....2 more years 🙏🏻

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amicissimma · 23/09/2022 14:22

Oh no! They're reducing rates back down to the levels they were under Blair and Brown. Nasty Tories.

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Blossomtoes · 23/09/2022 14:22

Lots of high earners I know have no life, they are consumed with working every hour of the day, take no holidays, work weekends, work 18 hour days, sacrifice family for their jobs.

My heart bleeds for them. They choose to do that so they have an enormous cushion to fall back on when they burn out. Perhaps those industries should employ more people so there’s no need for people to have those working conditions.

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MelodyPondsMum · 23/09/2022 14:24

lemmein · 23/09/2022 14:22

Well I earn nowhere near £150k but I'm delighted! Any nail in the tory coffin is fine by me, I truly despise them....2 more years 🙏🏻

I'm not sure the country can take 2 more years. Let's hope that's enough time for Labour to remember what a woman is .

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the80sweregreat · 23/09/2022 14:25

Only ds2 wanted to go to Uni a few years ago.
Dh was a middle earner , not that well paid , but not enough for ds to get much help with the bills do it was up to us and he had to find a part time job as well, it was hard and we had to sacrifice a lot to get him through three years of study.
Maybe this new government are not going to encourage the children to go to uni any more as they won't be able to afford the energy bills let alone food or rent. It's going to be impossible and that's with two parents working in normal paid jobs. Unless they happen to live in a Uni town area and won't need to live away from home or can commute.
Even then , you still need the loans and pay them back.

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Parker231 · 23/09/2022 14:25

Luckydip1 · 23/09/2022 14:20

This country needs to stop resenting people who ares successful and start saying good on them. They are the ones paying massive amounts of tax and they worked incredibly hard to get there and are probably very clever too.

So carers, teachers, nurses, bin men etc don’t work hard?

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DawkinsOldSpot · 23/09/2022 14:25

FinallyHere · 23/09/2022 12:47

The trickle down impact of tax cuts for the rich was already discredited back when I was reading Economics in the early 80's.

Think about it.

If a person who is struggling to pay everyday expenses gets more money, they are very likely to spend it immediately, on paying existing bills or possibly, even buying more things.

That money goes straight back into the economy.

If someone with plenty gets more, they are much more likely to save more, rather than increase their spending. That helps them long term, giving them more interest in the future but doesn't do much for anyone else who is active in the economy, as a producer or distributor.

They do like to think they are some home 'better' investing than spending.

Thank you for explaining that! Best example I’ve seen :)

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Getoff · 23/09/2022 14:25

I assume the reason for abolishing it is just because new politicians are in power who don't like it. It's got nothing to do with the state of anything.

I actually like that's it's gone, and I would go further and give higher earners back their personal allowance.

My feelings are to do with the simplicity and elegance of the tax system, I have no view on the impact on revenues. If their are lost revenues that are needed, then I would simply raise the higher rate to replace what was lost by the changes.

(Actually another reason I don't like it is that I don't like measures that treat a minority differently. I would ultimately like a system where all taxpayers have the same marginal rate, no higher than 50%, but with high personal allowances, so people on median income or less pay nothing. You don't have to have multiple different levels of tax to make sure better off people pay a higher percentage, two tax bands, 0% and (say) 50% are enough.)

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lemmein · 23/09/2022 14:26

Luckydip1 · 23/09/2022 14:20

This country needs to stop resenting people who ares successful and start saying good on them. They are the ones paying massive amounts of tax and they worked incredibly hard to get there and are probably very clever too.

Oh fuck off! 🤣

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Wheretheskyisblue · 23/09/2022 14:26

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.

People earning over £150k will keep on their cleaner, gardener etc whether or not the top rate of tax is 40% or 45%. It will make very limited difference to the money going into the economy. All we will be doing is upping the amount we invest (mainly in overseas funds) which will not benefit the uk at all.

In order to get the economy moving you are much better off putting more money into the pockets of those on low salaries as it will be much more likely to be spent on food etc.

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kistanbul · 23/09/2022 14:27

@Luckydip1 Public services like the police and roads etc are expensive and we’ve had over a decade of “efficiency savings” What activities do you think the Government should stop paying for to fund all the tax cuts?

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MelodyPondsMum · 23/09/2022 14:27

@Luckydip1 since you think we should revere those who earn more because that means they're smarter then perhaps you should listen to the posters on this thread saying they're high earners and that they're unhappy about this.

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