To those on £145,000 plus will you spend or save your tax reduction following the recent budget

[FridayTheThirteeth]

The PM says that giving tax cuts will boost spending and the money will trickle down to the bottom

So if pay the 45% tax will you spend the majority of the tax reduction or save the money.

I think people will save the majority of it.

YABU - they will spend most of it

YANBU - most people will save most of the tax reduction

WTF is microblading? Is it something you use to chop microherbs? And how come it’s so expensive?

Haven't given it much thought but I expect spend it based on rising costs. Our savings come from a different source

Gold? Titanium mines? Elon Musk?

That would have cost tens of billions more. As it is the 45% change will cost very little in the big scheme of things. It was done just to send a strong message that England/Wales are low tax countries as a message to foreign business owners/millionaires and to help stop the countries own higher earners from moving abroad.

Hmm, I don’t think the policy’s target market is the vast majority on here who might be saving a few thousand at most. If you are needing/wanting to top up your pension or savings, you’re in the very lower end of the bracket. I am not saying I agree with the policy or think it will work but those commenting here thus far are not the ones the government will be relying on for the trickle down so the responses won’t be meaningful.

It IS expensive (and I understand painful) but generally the demographic that goes in for it isn’t The Rich

Same here

Yes, was just thinking the same.

We will benefit from the 45% rate cut, albeit the lower end of it (we are far from millionaires).

Assuming it doesn't get reversed (I really hope it does- its nonsensical) we will be splitting the extra between some extra support for a relative in ill health who is entirely dependent on benefits, and the food bank. We already support both the relative (currently approx £150 a month on average) and the foodbank (currently approx £50 a month with extra at Christmas) but will be increasing the amounts for both. We are fortunate that we can easily do without the additional money so will try to help those that are struggling.

We are also looking for a local 'fuel bank' to donate to.

Eh? Upthread that's what some person reckoned she was spending her extra dosh on! That's why I referred to it! Also, I do think rich people do it - Victoria Beckham, Kardashians etc

It’s 5% of anything over £145k, which you’d already be paying 40% on. So unless you are earning millions it really doesn’t add up to that much to disposable income. Especially with the price of everything increasing. People with more money tend to live within their means just like anyone else. It wont equal thousands in savings, or additional spending. Just a continuation of what is already being spent, likely with a squeeze on luxuries

It IS expensive (and I understand painful) but generally the demographic that goes in for it isn’t The Rich

lol, there are plenty of the very rich who go in for this.

Saving is also good for the economy. There is then more for banks to lend for investment and leads to reduced interest rates.

Maybe once upon a time Mackers but it’s not how banks raise funds to lend nowadays.

Maybe a regional thing but you don’t see a lot of it at our DCs Private school.

Do you not max out your ISAs already?!

Our local private girls'school seems to have a microblading thing going among the girls... plus the lip thing. It's fashionable, big eyebrows, big lips

No, not really a thing here for the pupils or parents for some reason

Maybe a regional thing but you don’t see a lot of it at our DCs Private school.

Just need to watch TV/Netflix, flick through a mag, look on the internet & you will find a wealthy person who's gone in for it.

I wouldn't necessarily expect to see it on kids though.

No, we haven’t. We have had a large increase in income this year for a couple of reasons and one of the DC left Private school so we have more disposable.

I’m sure but isn’t it more a celeb wealthy kind of thing rather than a business/professional person kind of thing?
Not judging it but it’s just not something I see a lot of.
I am probably just old and provincial

Yeah my point was wealthy people do go in for it....

Balls. I have that kind of income and I'm spending it. Why not?

Not the ones I know - but I appreciate I was mistaken to think that it’s not generally something wealthy people do.

Wealthy people aren't necessarily professionals. People on here may have made their money as bookies or running strip clubs. We don't know.