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.

That £10k average saving calculated by Daily Mail is headline grabbing nonsense.

I'm in the same position as you. Unfortunately, there are a lot of selfish people out there who only care bout themselves.

On a recent thread there were quite a few posters annoyed that U.K. pay was lower than say US for top end. I know these things attract different views but I assume the higher earners outraged on this one were not posting there and vice versa.

I find the overall thing strange in that it will stoke a reaction like we’ve seen but if it can bring anything good we’ll see

It’s got everything to do with your point. If the country was on a sound financial footing these tax cuts would be more acceptable. As it is, they’re making the majority of us extremely angry because they’re being taken from those who have nothing.

We’re very fortunate, we’ll weather the storm but a lot of people will go overboard and drown. I really thought naked inequality was a thing of the past. This is just so sad.

The 40% threshold group do benefit from the reduction in the 20% rate - they actually benefit more than almost everyone in that 20% band (with the exception of those at the very top of it). As they are already better off than many people, they don't really need any extra help on top of this, or at least, they should not be the priority for any help.

That’s not true. If you pay 40% on a slice of your earnings, you also pay 20% on a different slice. That will reduce to 19%

"Small" small businesses were never going to be affected by the proposed CT rate increase to 25%. Business with profits under £50k per year would have retained the 19% and businesses with profits between £50k-£250k would have paid at rate between 19% and 25% depending on their profit level.

And exactly how many people does that involve, I wonder?

Truss et al demonstrate that Tories just grease the palms of their mates and donors.

Right, I didn’t know that, and I agree. Very worrying.

Not helping the markets - “the pound has fallen below $1.10 for the first time since 1985 as investors took fright at the prospect of a surge in government borrowing to pay for Kwasi Kwarteng’s sweeping tax cuts.”

What do we think about the stamp duty being axed - will it translate over to Wales too?

THIS in spades.

DH is in that bracket too and his/our gain sickens me at a time when the country is in crisis simply sickens me.

I think you are naively assuming people on £100k are loaded!

I always thought it was a huge salary, until my DH wanted it for a year and we paid a fortune in tax, no tax free childcare or 30 hours funding, extra tax because pension accrued more than £40k, it wasn’t worth the effort.

He quit and now earns £80k and we are better off financially than when he was earning £100k! It still isn’t a huge take home amount though after all the deductions.

I'm also human, and can see that this budget has done nothing for those who need it most.

But if they don’t benefit from the cuts, then proportionately, they are paying more, so really, they are saying that.

What is the corporation tax change?

Hopefully you can find ways to pass it on to less well off

We have a tory government. Is anyone surprised they’ve done something to help the super rich?? If we want change, we need to not vote Tory. X

The trouble with trickledown economics is that it only works when the wealthiest are not greedy and amoral.

Nothing’s being taken from “those that have nothing.” What’s happening is that those who earn the most are still being taxed and that money is being redistributed to the poorest in tax credits and benefits.

It’s dishonest to try to claim otherwise; we have a progressive and redistributive tax and benefits regime in the UK, and that is not changing; the highest earners are still having a large fraction of their wages taken off them to support the poorest.

Also, I would like to know how the government is being held accountable for this very dramatic policy?! Can it be right that such a radical rework of tax policy is simply announced without scrutiny even from within the party? From what i hear there was some discomfort on the tory back benches during Kwarteng's speech.... will they say anything out loud?!

My thought exactly !

www.taxjournal.com/articles/want-to-pay-more-tax-

"If they are sincere, then I have good news for them: the government makes it easy for any UK-resident individual or UK-registered business to make voluntary payments to HM Treasury. Although gifts cannot be ring-fenced for a specific purpose or assigned to a specific area of public spending, donors can decide whether they wish to make a donation towards general public expenditure or to reduce the national debt."

Great news for all the disgusted people looking to pay more tax. You can send it back if you want to.

Scrapping the 45% rate on incomes over £150,000 will cost exchequer £2bn a year according to Treasury’s own estimate

we have a progressive and redistributive tax and benefits regime in the UK, and that is not changing

According to Truss it is. She and Kwarteng have plainly said their only interest is in growing the pie, they have zero interest in distributing it fairly.

That’s true for anyone in any tax bracket who thinks they have enough to put towards the public purse, not just highest rate tax payers!