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.

I am intrigued by answers to this too.

Realistically, I don’t think most people would even remember this as being the case.

It didn’t seem to attract the same you’re right, not sure who raised it again either

In your opinion what’s the key benefit - is it to attract higher earners? Or more the spending or other

Because they know they will be 'out' next election & are looting the country whilst they can (for them & their friends).
It makes no sense economically. Sunak must be shaking his head in disbelief.

I'm in the bracket who will benefit. I am appalled. My business will pay considerably less corporation tax too - again I'm appalled.

Despite being a high eater I want to live in a country where people are doing ok in general, where kids are not in poverty, where youths are not turning to crime, where people generally feel connected to society and one another. Where there aren't pot holes, leaking schools, insufficient GPs.

Why do people believe wealthy = selfish? I've never voted Tory in my life because I want these other qualities more than extra money. I have enough. Other people do not. That's not right.

@Delectable

www.gov.uk/government/statistics/percentile-points-from-1-to-99-for-total-income-before-and-after-tax

The top 2% of income earners have a gross salary in excess of £125k pa and the top 1% in excess of £180k pa.

Dropping to this specifically, or because interest rates didn’t go up enough (which is obv MPC dependent, not govt).

Monaco vs Mansfield ? no brainer.

People go to places like Monaco or Andorra because thats where the money and their friends are plus good weather.

Anyone in that bracket can afford tax accountants & aren't paying 40% let alone 45%.

It makes virtually no difference.
Bonuses is an odd one because when they were capped, base salaries were increased accordingly. Not sure they can scale that back now - hopefully those people will all have moved on.
I believe he's cut the basic rate from 20p to 19p which helps the ordinary person and is a far larger giveaway. I think that's a pretty desperate measure but these are desperate times.

No idea whether it will be a good thing in the end though. Let's hope it works.

Your missing the point. The lower corporation tax is to attract more businesses to the UK to set up and employee people and pay taxes. One of the few benefits of Brexit is that we can create a more welcoming business environment for foreign companies. More companies means more jobs.

Some 600,000 paid/will pay the top rate last year/this year

www.gov.uk/government/statistics/number-of-individual-income-taxpayers-by-marginal-rate-gender-and-age

It’s a Budget for the wealthy.
We will benefit as business owners but I still think it won’t help the people who actually need it

In my view the biggest benefit is that it’s fairer; the rate has been too high for this past decade.

What it will do to the overall tax take remains to be seen. One reason DH has been tax resident abroad these last few years is the tax differential. He’s more likely to switch back to the UK now, but there’s no way to know if enough people will do this to offset the lower rates.

There are plenty of jobs
Its hard to fill vacancies in many cases

No the £ dropped dramatically after the KK speech, more importantly was the 10yr yield on gilts, at levels not seen for 40 years, which means the markets don't want to lend us money unless at v high interest rates.

Thats very worrying.

As you no doubt know, the Blair/Brown government made huge investments into public services which improved significantly. Now we have public services on their knees, thanks to austerity which was supposed to be to reduce the national debt. We currently have the worst of all possible worlds - tax cuts benefitting only the wealthiest, appalling public services, raging inflation, a plummeting £ - I can’t remember worse handling of the economy and I’m old.

But as the tax data shows, that just isn’t the case. The top 1% of earners earn 14% of all wages and pay 30% of all income tax.

This idea that the highest earners aren’t paying is us just demonstrably false.

A lot of Brown/Blairs spending was wasted though into the leaky bucket. Shame they didn't try to plug the holes before throwing so much money around.

It's insane.

I'll benefit significantly from this budget but I just don't need to.

I don't have to worry about bills and any additional cash from this budget will just form part of my savings - I'm not going to be spending more than I already am. I think that's true for most very well off people.

Anyone in the same position as me welcoming this budget is incredibly selfish.

Nothing for the 40% threshold group either. That would have helped the squeezed middle. Incentivising "hard work" amongst the top 2% only. A bonfire of rights to follow. It's criminal. Why are we allowing them to loot our country?

That’s got nothing to do with the point I made. Were you as upset when top earners were paying less than they are now?

How can the rates have been fine under Labour but be “immoral” now?

Have you seen the stats on the NHS when Cameron took over, and how much worse they have got under each successive Tory PM?

DH will get a small break from today’s news, is exceedingly clever, and is utterly appalled. I came to the UK by choice and all through Cameron, May and even Boris I thought the positive aspects of British culture and values outweighed the bad. I am seriously wondering for the first time whether that is true.

let's debunk the Daily Mail headline grabber of "Scrapping the cap on bankers bonuses" as a meaningless red herring.

The cap was put on bonuses so all they did was shift the money to giving them a pay rise instead.

Absolutely no negative effect either way. The bankers still get paid shit-loads.

You do realise that lots of small businesses are acutally LTD too.

A 6% increase in taxation, when many of us have been hammered by Covid restrictions and lockdowns, increased rates, utility costs, PPE, raw materials etc is quite hard to absorb.

Please do not fall under the impression that only the rich are benefitting, this will really help a lot of small businesses, that have seen our margins hammered of late.

I don't think anyone's saying they want people to pay more tax, just that they shouldn't benefit from cuts.

Do you think there are no low earners who take no holidays, work weekends, work 18-hour days etc?