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.

Dh is a higher rate tax payer

he thinks its a fucking stupid idea, but as with others on the thread he’ll probably save the difference

Wow, that's a years school fees at a top public school. Crazy.

There isnt a corporation tax cut though just not a rise?
So you wont be better off- just not worse off?

I know that the Tories have little respect for what they consider 'plodders' but not everyone can be the venture capitalists. Who actually does the work? They need people to be the actual employees and from what I can see, there is a serious shortage in the job market at the moment.

It's a bonkers budget and the Nasty Party is back in the room.

I’ve worked it out that I will be about £1800 per year better off, honestly won’t notice it.

@Kissingfrogs25
"We have a sizeable percentage of serious professionals that create the wealth in this country and are paying a huge amount of tax, and we have a very sizeable percentage of uneducated people that are not looking to improve their lives especially as long as they have sky TV and enough for a few pints"

OK, so which percentage of the population do the serious wealth creators of which you speak need to allow them to create their wealth? Do they all work alone? Do they not need services and infrastructure and staff to work for them? Who provides this for them? Is it those serious professionals' you refer to? Your post made me angry but provided insight into the mindset of those who support today's budget.

To all those high earners who disagree with today's budget, perhaps write to your MP, of whatever party, to let them know. There will be a vote on this and they need to know your views.

You dont say!

Fully intend to.

I (not we) will be more than £15k better off per year. We’re due to start a big construction project on our house next year so this probably just adds to the contingency pot. Otherwise, as others have said, savings and paying down mortgage. I’m looking at other ways we can contribute to those who need it.

I am disgusted by this budget. So is everyone I have spoken to today who is in a similar position. Getting rid of the 45% tax rate is entirely unnecessary.

Unless the wealthy are going to wander down to their local pub and pay the gas bill, it's complete nonsense. The wealthy don't put money in poor people's pockets. We're not their servants or stableboys anymore. They do not frequent our businesses, our pubs or restaurants. They don't hire us to do their tasks because they have other exclusive rich people for that. They move in a completely different bubble and their money doesn't reach us.

He was chancellor when we got into this mess so not quite sure where his level of understanding would have got us.

I'm a high earner who would never, ever vote Tory, so the only thing I'd send mine is a dog shit through his letterbox.

We’ll benefit. But since successive governments have shown themselves seriously short-sighted and inconsistent, and we’re educated enough to know there’s no money tree, we’ll save the extra in the full expectation that the next government will whack taxes back up again. We don’t have the confidence to let it trickle down. It’s absolutely idiotic on every level.

I can't believe how much of a 'licking finger and sticking it up in the air budget it is'. If Labour did this kind of thing they'd get slaughtered by the same papers who will be praising the government tomorrow.

I'll be honest, I benefit but was appalled at the decisions they made today.

Realistically most of it will go on our mortgage as our fixed rate comes to an end next year and our payments are due to go up by approx £350 a month. My plan on the meantime is to start a monthly standing order to the local food bank for the difference

I work in tech where we have to bring in a ridiculous amount of EU and foreign nationals (especially India).

We would hire UK workers if they were educated and experienced enough. And it's not like the tech skills shortage is a new thing. I've been talking about the war for talent for 10 years+.

In fact there are government schemes now that fund tech training to get more people into tech, as there is such a shortage. Anyone with a relatively normal IQ could cross train into tech right now over a 3-6 month period, and put themselves on track to earn £50k within 3-4 years. And then it sky rockets if you're good.

@Noviembre maybe pass on your views at the same time though!

MPs are elected to serve their constituents and, from the range of posts on this thread, they seem to have assumed that the highest earners will welcome this, will spend more money, etc. so they need to know they are wrong. Contacting them directly is the only means to do this.

I do agree.

We'll be 2.6k better off a year, we tend to spend a lot on local restaurants and pubs so will likely pass some on there I suppose.

I wish they'd give every penny of the cuts to those earning under 25k.

Jesus christ!!!

I'm mid earner (high to some, and low to the ones affected on this thread) on around 55k
dp earns 12k, in family of 4 with 1 at uni, and 2nd starting next year things are tight, but not as tight as others

I think there should be MUCH more help for the properly low earners, they need it more than us, we will be able to eat and heat

And less for the high earners

What do you mean by this? Of course the rich go to pubs. They also buy cars, get them serviced, get takeaway food, have their houses maintained, pay for cleaners, go to the supermarket and so on.

I was out at a dinner in the City yesterday and the pubs were absolutely packed out.

Well at least this government have given up any pretence that they give a toss about the ordinary people in this country and that "we're all in it together".

What do all those who think they couldn't vote Labour because they would be clueless about the economy think about the current level of the pound?

As of 5pm it stood at 1.12 Euros to the £ and against the dollar at $1.09, almost at parity.

I had hoped that this country might eventually get through all the shit that is going on but frankly this Truss cabinet terrifies me.

We will be around £8k better off, no mortgage left to pay off or any debt. It will make no difference to us, spending won’t change it will just go into savings. And we both think it’s bloody ridiculous.