Why wasn't 40pc rate reduced or income tax thresholds raised?

[Indigoo03]

Any opinions?

Because if I earn £100 over the threshold then minus tax (40%), NI (13.25%), pension (6%) and student loan (9%), then I walk away with just over £30.

It’s not worth my time.

Subsidies?

What do you mean?

How is someone on £30,000 subsidised?

They don’t get more money through tax cuts.

They keep more of their earned money.

This is not the same.

The idea being that it will all get spent and stimulate the economy as you say.

You are saying only poor people keep the economy afloat then? What an interesting take on things.

I think it is cute how hard you try to spin yesterday's shambolic budget.

This was a crazy budget and everyone can see it - including the international money markets.

It’s very disappointing @Indigoo03, as a threshold raise to £80k was leaked for some days before the ‘budget.’ I agree it is a massive disincentive to take on additional work, I had really hoped it would be raised.

&It's because for some people there comes a point where they don't think it's worth the extra effort of going for the next promotion or working another shift

Well that’s on them then isn’t it.
You don’t think it’s worth it, fine. But no soy else is going to be giving you any more money, you need to earn*

I totally get it. I pay just under £3k childcare a month and work full time. Because of the 40% tax on what I eadb above the threshold, I'd be better off financially working part time once the extra childcare costs are taken into account. A lot of colleagues thought I was mad to take a promotion and return to full time as I'm making myself financially worse off! I do realise that this applies because I have 2 small children close together in age but there are many people in my situation.

8th bloody time.

I am against these tax cuts.

Against!!
Got it?

But the ridiculous narrative around the rationale for this and who should and shouldn’t be seeing any benefits - is simply inaccurate. On here and many other threads

Understanding what’s being done and agreeing with it - are not the same thing.

A family earning in this bracket almost certainly gets UC. All the median income tells you is that the UK has a pretty low wage economy and the median income isn’t enough for the cost of living.

This crap situation is enabled by the much greater tax burden placed on the top percentile by income (and disproportionately towards the upper end of that).

I saw something recently that suggested that by 2024 the average Slovenian household will be better off that it’s UK equivalent. https://www.ft.com/content/ef265420-45e8-497b-b308-c951baa68945

The UK is not in a good state at all. It’s pretty depressing.

Well that's just madness. The pension is your money still (and you can always reduce contributions if you want more now) and the student loan is your debt - the more you pay now the sooner you'll no longer have to pay it. If 30% isn't worth it to you then fine, but you're obviously not that hard up.

Are you for real?

As a PP has advised, please go and look at ONS stats here.

This is where I am with it too.

I think the mini budget is pretty stupid. And I have precisely no confidence in the government (or the opposition) in fixing what are some really big longer term issues in the UK economy.

But I still despair at the idea that taxing the highest earners less is a ‘handout’ for them. Or that it’s as simple as ‘just tax the rich more’.

You use the word subsidies.

Tell me how?

Unless you mean education, NHS?

Hear hear. Or higher!

Years ago, I took home almost nothing once costs were accounted for.
Three kids (when childcare received no subsidies), mortgage, I had very little left over.

But I kept going and didn’t give up.

Shouldn’t even be an option to, quite frankly.

And given up once calculating ‘what you can get’ is a bit part of our problem here in the UK.

*big (not bit)

UC, CB to name two fairly big ones for many people.

Quite the lickspittle.

So does that mean additional rate payers got a 100% cut using the same twisted logic?

If there was a choice:

People at the lower end who have more disposable income to spend locally

OR

People at the higher end with more disposable income to spend or save

Which is better?

And I didn't use the word 'save' with the lower end because it's more likely people will spend than save when you don't have much

And rich people use private healthcare, schools, social care, etc

They pay through the nose for things they don’t use; fair enough, they should contribute.

But to say ‘more, more, more’ with your hand out, whilst people work out whether or not It’s worth their while to work more (or not) is insane!

You do realise that people on £30,000 don't get UC

And that there are many people in that salary range who don't have children or who have older children

Given economists and Tory backbenchers can't understand WTF Kwarteng and Truss are doing, I am intrigued you have set yourself up as their spokesperson on here!

You are making the assumption that people who earn more will pop their 2k in a bank account.

You seem to actually have no lived experience in term understanding those you perceive as ‘rich’ in today’s climate with three kids, a mortgage etc and what they do/don’t do with their money.

That much is clear and is why so many people simply don’t understand why, I’d you cut taxes, you have to account for these people.

Because that wouldn't prioritise the 1% richest.

You know how on the relationships board we keep saying "he is telling you who he is, believe him"?

Well the Tory Party are telling us who they are right now, and we need to believe this. Their actions are at odds with their campaign rhetoric, which obviouslytries to persuade us that they don'tonly care for thr 1% because they need votes from more than just 1%. But it is their actions that tell us the truth.

Who has said 'more, more'?

We have borrowed money for these tax cuts.
The idea being that it incentives rich people to come here and promotes growth.

We could have borrowed money, done the tax cuts more at the lower end, and also promoted growth that way

My read of it is that the thresholds will be raised during the April budget or closer to the GE.