Trickle down: To ask higher income earners...??

[venusandmars]

Following on from the budget announcements today which disproportionately benefit higher earners (particularly anyone earning over £150,000 pa), if you have a higher income and will therefore benefit from the tax changes, how will this really impact on your spending?

Will you actually spend more on local services (more coffees out in a locally owned cafe)? Will you increase what you pay your window cleaner? Will you donate more to local charities or spend more time volunteering? Will you make voluntary contributions to HMRC? What WILL you do with the extra money?

OK, I know IABU asking people to account for their choices, none of us know the financial pressures that higher earners might be under, but it seems to me that the whole 'trickle down' economic theory is completely flawed. So little of that additional money is going to be seen by lower earners - and almost none to those who cannot work.

I'm not in the +£150K bracket but I have enough when I know others are really struggling. I have increased what I pay my window cleaner. Over the next 4 months I will use my 100% of my energy payment to donate to local foodbanks. It's small stuff, nothing heroic.

I am despairing about the tax announcements today.

@PoppyFleur absolutely right. Agree with everything you said.

@GoldenGorilla that's what I meant, I just didn't make my point very well! The gap is just so so wide now.

But it is their real world. They’re living it.

And making jobs for other people. That’s helping people stay in employment.

It’s just a different world to your reality. Doesn’t mean it’s not a real world to them.

It’s closer the real world of government ministers. They’re protecting their own.

To be fair though the majority of 45% tax bracket posters on this thread have said they don't want the tax reduction and disagree with it

There have only been a couple who say they pay 45% tax that I have seen- the rest have been 'we' have a household income.

But that’s the point I was trying to make. They might make jobs in London. They are not making jobs where I live. Do you know who does? Average waged people enjoying a meal out or making a home improvement through the trades.

That’s a red herring. People outside London have window cleaners, dog walkers, gardeners and cleaners. We take our cars to be hand washed. It’s not just the wealthiest who use those services.

@Crispynoodle and @mum2jakie

www.gov.uk/guidance/find-a-skills-bootcamp

Of course my world is as real as yours. Perhaps you mean ‘lucky’ or ‘uncommon’.

Today my children will have 5 extracurricular activities. I’m basically paying for those places to stay open and for the teachers to have food on their tables.
I’ve just brought a bag of clothes I don’t like anymore to the charity shop and I’m going food shopping and leaving items in the food bank trolleys as well. I booked many tickets for the theatre and concerts to support the arts and artists in particular.
Today I’m also booking three more foreign holidays for the coming months, talking to the architect about work to be done on our foreign home and cooking two separate lovely meals with ingredients I put in my he trolley without having to check prices. That’s my life. I know I’m lucky. 30k makes no remarkable difference to me but the NHS Is not on its knees because of that. Nor the lack of people for essential services btw.

We can mean I. I refer to 'we' because we (dh and I) are a partnership (what's his is mine and vice versa), but my husband is the big earner who is well over the 45% threshold.

I suggest you reread the thread more carefully - there are more than just a couple of posters who stand to gain from the tax break but oppose it. But perhaps this doesn't suit the narrative that all wealthy people as self serving bastards

That was to @UsernameHistories

It's making me enraged that the poor of this country are seriously worried how they are going to survive this winter, and the bastard tories have had the absolute gall to have a 'budget' effectively just handing money to the rich, who are now booking holidays, buying cars, eating out on the back of this nice little handout, and if they are lucky, the poor might get thrown some scraps to fight over.
And yes, there are lots of wealthy people on this thread who I know are decent people and I know you don't agree with it either

exactly my point
we haven't heard from many people who actually pay 45% but rather from their spouses.

For transparency
My DH pays 45% tax on about 25% of his main salary and on all of his bonus and share options and any retention payments. This amount varies each year mainly due to share cycles rather than varying bonus. He is close to his lifetime pension limit which restricts the amount he can pay in.
I typically pay 45% on my bonus/retention only- my main salary is £120,000 (although I front load pensions at the moment). I don't have share options.

I'm enraged too but alas the citizens of this island are just going to accept all this with a collective shrug of the shoulders.

@UsernameHistories - my spouse doesn't mumsnet, but we've discussed the budget at length and are on the same page. He opposes it

@Autumnalmorningx2 to be honest you're just coming across as a slightly nauseating over privileged braggart. Is is necessary for everyone to know about your 3 foreign holidays in the coming months when people are terrified about being able to out their heating on? And by the way, you are no more responsible for putting food on teacher's tables than every other taxpayer in the country.

What else can we do until a general election is called? Let’s see whether the enragement is reflected at the ballot box.

Demonstrations and protests?
I'd like to see the Labour Party do a party political broadcast on the budget's tax proposals because I am sure many people remain blissfully unaware of the inequity of these tax breaks

The high earners who want to be taxed more wouldn't you just give ££ in another way?

Charity, less fortunate family members?

The very wealthiest in the U.K. will not be particularly impacted by this as they do not receive taxable income anyway. They will have already organised their money so that they are paid in dividends from investments etc - taxed at 35%.

I would have gladly continued to pay higher tax - give it 2-3 years and they'll be increasing the tax (either Tories or more likely Labour after the next election) beyond what it was to fund the debt and massive deficit.

As it is - we will probably hire a gardener and increase rate for our cleaner.

For us it will mean we will continue our spending as usual,whereas we may have had to cut back very slightly beforehand.

I think we can all see what's trickling down on this thread from some posters. It's nothing less than expected and smells like what it is.

Won't affect our spending as the whole thing is giving our investments a total kicking.

DH is in 45% bracket and I am in 40% bracket. It will allow us to put more into our pensions. Which is nice for us, but not the right decision for the country as a whole.

A short term overheating of the economy paid for later is the last thing we need. Thoughtful, long term investment is needed.