To think the Tories are clever?

[ClassicLib]

They are introducing a massive pension tax cuts for their rich mates in the city, and selling it by claiming that it might also persuade a few rich NHS consultants to delay their retirement to their second homes in France for a couple of years.
And who is paying for this? Why you & me, of course, because our basic rate & higher rate tax allowances are being frozen until 2028. This is actually a massive income tax increase for ordinary working people, of course. And the media have fallen for their spin.
That’s smart politics…

You clearly don’t understand the principle of proportionality.

It’s irrelevant really. Those who are effectively being taxed are the ones who contribute the most £ note wise to the economy. Discouraging them from working and lowering the tax take is just stupid; as we are finding out.

You can’t tax people more than 100% - oh wait.

Why are you being so rude?

I am inviting you to show evidence for your statement, that’s all. It doesn’t make you sound any more credible if you refuse to answer the question and throw insults around.

Not the only reason I will continue to vote for them, but certainly top of the list.

Likewise. Other reasons for me include, I could never vote for But Jeremy Corbyn, who cares whether Boris had some cake, Keir had a beer too. At least Boris got Brexit done and took control of our borders and got us our soverigty back. What has Keir ever achieved?

I think you’re mistaking directness for rudeness, I haven’t insulted anyone. I don’t do that.

Just think about it. Person A buys a litre of petrol from their take home pay of £5k a month. Person B buys a litre of petrol from their take home pay of £1k. Who’s paid the highest proportion of their income? Effectively B is paying five times more.

That wasn’t the question though, was it.

(If I were as rude as you I’d now say something like “You clearly have poor reading comprehension”. )

The question was What other taxes are paid disproportionately by someone on £20k than someone on £100k?

I’ve named two taxes and provided an example. I’m at a loss to understand what I’ve said that’s rude.

Person A is paying over 100% in tax which will indirectly fund the tax free uplift of person B in UC - alongside their access to public services. Stop the highest tax payers from working, what happens? Economy stalls and services fail as you can now see.

Talk about turkeys voting for Christmas.

No, the question was:

Someone earning £100k will pay around 34% of their income on tax and NI. Out of their net income they will then pay further taxes on eg VAT and fuel etc so their overall percentage will be higher.

Someone earning £20k will pay around 12% of their income on income tax etc. Yes they will also pay VAT and fuel tax, but does that get them above the 34%++ paid by the higher earner? Taking into account any universal credit or other benefits received?

At least Boris got Brexit done and took control of our borders and got us our soverigty back.

I suppose this commeng explains the lack of understanding of economics.

That wasn’t the question I answered. I responded to the one I quoted.

Its sad you don't look at their actions and not just taken in by their words.

Have you also been scammed out of a pension too?

In response to exactly that question - quoted - you said “You clearly don’t understand the principle of proportionality”.

So rude and wrong then.

Just think about it. Person A buys a litre of petrol from their take home pay of £5k a month. Person B buys a litre of petrol from their take home pay of £1k. Who’s paid the highest proportion of their income? Effectively B is paying five times more.

But that doesn't show that's they are paying a higher proportion of tax on their income as a whole. 🤣 The higher earner will buy other goods that are also taxed at the same VAT rates. And pays a far higher percentage of tax before they even receive their net income, whereas the low income person will have a negative tax rates of sometimes -50% on their earnings because they receive universal credit on top. It's a completely false deduction as I said previously. It seems it is you that is struggling with the maths.

Thanks @ScruffyGiraffes it’s like banging your head against a brick wall!

Yet despite record number of millionaires in the UK over the last 15 years and greater increases in equality...we have record low growth and productivity.

Whereas countries with higher taxes for the wealthy in Europe, are doing better ....strange that.

Can you explain how this weeks budget will achieve growth?

It certainly is.

Care to answer the actual question yet?

I’ll never be in that position but don’t agree with the higher tax bracket in the first place

Yep. Productivity and living standards won't rise significantly until the punitive bottlenecks in the tax system at £50k and £100k are removed. And the absurdity of applying these thresholds on an individual rather than household basis. The evidence of the damage it is doing to the economy is indisputable, lowering tax revenues and therefore funding available for services. It's astonishing that the politicians are so stupid they're not addressing it. Even the IFS was saying how crazy it is: "an absolute pig's breakfast" was the description of Robert Joyce, deputy director of the IFS.

I’ve answered your question What other taxes are paid disproportionately by someone on £20k than someone on £100k?

Perhaps don’t ask questions if you don’t want responses to them.

Whereas countries with higher taxes for the wealthy in Europe, are doing better ....strange that.

Name another country that has a tax bracket where the rax rate is over 100%? Then falls back to 45% for people who earn far more.

I've not read the entire thread & missed which UK tax this is?

But either way, countries with far higher tax burdens are doing better by most measures than the UK.