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.

Yes, exactly. Those who are disgusted by the tax cuts are more than able to put what they have saved BACK into the public purse.
How many of them will actually do it, do you think?

There is no change in Corporation Tax, its staying at 19%, the rate its been at since 2016 - and the rate at which it has failed to attract new business to the UK.

Business needs certainty, KK's budget offers anything but.

it is utterly ridiculous - giving me a few £ in my pocket at the cost of public services and everything else is idiotic. The amount in question, at individual level, for a normal person, is vert small. But aggregated up, it’s billions that can be put to use for the good of people.

Thanks for that.

Absolutely none of the appalled champagne socialists will do this. None.

Quite, nothing for adult social care, hospitals, GPs or staff, infact the opposite as the NI is scrapped, so effectively a 20 billion cut to funding.

But at least we'll have a few pounds extra to spend on private healthcare.

I agree but also trickle-down economics has been seen as a flawed theory for a while now. If an already wealthy person gains 10k extra a year, their likely change in economic behaviour is minimal because they already have pretty much everything they want, they are still going on holiday, drinking coffees, eating in restaurants driving a car etc.

I won’t because this government would just give it to people much wealthier than me. I have increased my foodbank direct debit though - does that count?

Its not up to the individual to direct funding to HMRC and as said, without ring fencing, would be used for a Work House Scheme or further tax cuts for the rich.

I really can't understand how they can be anymore so blatant.

I can only think they are fed up ravaging this country for their own personal gains, realise the money tree is finally dead, and are having a final splurge to maximise their fortunes.

Then they hope to get voted out, retire early with their millions, and let someone else try to clear up the mess they have made.

High earners already pay a very high tax burden, one of highest in Europe and world, to fund about 65 percent of government spending. The more the high earners are taxed the less motivated to work as just end up paying more tax.

Let's call it what it is.
It's not trickle down economics...

It's piss on (us) economics.

And so many of you wanted liberal Boris and his levelling up agenda booted out. Now you have Truss who is most right wing PM we have had for 100 years. No more levelling up.

I know a champagne socialist who does so technically you are wrong. Just saying, don't want an argument with you. I guess I don't know whether they are 'appalled' though 😂

Clearly, given the UK has over 2.4m millionaires in 2022, up from 740k in 2015, lack of incentive is not holding people back from making money.

I just don't your argument, if i make £1m and pay 450k in tax, i am still £550k better off.

Exactly. Why would anyone who believes that taxes on higher earners are important because they believe that it is the government's duty to redistribute wealth from the rich to the poor choose to give money to a government that has instead decided to borrow heavily to benefit the top 5% of earners?

It would be an utterly illogical thing to do. Far better to use whatever surplus you have to find other ways of helping those that the government is so clearly failing.

I think the people who suggest this kind of nonsense must be lacking a little in basic common sense. If you disagree with the government's priorities for spending, you are not willingly going to give them any more money than you have to.

As others have mentioned, those who are disgusted by their saving on tax at 45% and NI savings, you are able to make voluntary tax payments to HMRC.

That should solve your guilt

Well now that you’ve made them aware, why don’t you start a thread asking about it. I am interested in seeing the reponses.

I’m sure outgoings considered, bar the lowest earners, there are many who could pay more tax, in other tax brackets.

I could, but we pay a vast amount already - I would certainly not pay any more than I already have to.

There were drops after Kwarteng started speaking apparently, so I was discussing that bit.

This is fucking insane. I will benefit - to a small degree - from the tax cut. I will give my cleaner a pay rise and donate more to a charity but I will save the rest because I earn enough to meet my needs. As I expect most people earning upwards of £150k will do. It doesn't benefit the worst off. That's government's job and guess what, they do that through tax, rather than relying on private individuals to make smart decisions with their money. Not only is it flawed, it's also deeply socially divisive. If people aren't furious about this, they should be.

Fair enough, I didn’t see it.
Can’t wait to catch up on the news and compare to changes in the markets, later this evening.

@lookthisway...ok... Maybe I was being slightly dramatic. Let's go with almost none/very few.

I would add there's better things you can do with your excess income to help people than give it back to the disfunctional government.

So you think it's fair that someone has to work for almost half the year to pay their tax bill before they start earning a penny for themselves?

Why would you want to work your bollocks off and get almost half taken away in tax?
Look back in history to the 70s when all the high earners ducked off because the top rate was 70%.
Yes that was a labour government

The very high earners employ accountants to make sure they pay as little as they can.