Rishi considers tax cut for top earners

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I am really trying to stay neutral here. But, faced with massive by election defeats, from a nation slammed with mortgage rises, cost of living, and inflation, The Tories are thinking about how they can reward the top earners???

Really?

Not the millions doing 60 hour weeks and struggling to pay their bills. It's this lack of awareness that is the whole problem...

Rishi Sunak considers tax cut for top earners after byelection defeats (msn.com)

The logic of cutting tax for top earners is that the overall tax income from top earners will actually increase as they'll be less inclined to take their assets offshore. The proof of the pudding will be in the eating.

Yes, or those overpaying into pensions etc to avoid the cliff edge. To be fair there is some ridiculousness when you get into the top tax bracket (I mean I'll never be in that so have no vested interest).

Knickerlessparsons
That is utter nonsense. The reason for a tax cut for top earners is a desperate attempt to win back some tory voters. It also appears the right of the party. It shows however how tone deaf this govment are. People are worried about public services. This government does not care about these services as they use the private sector hence focusing on top earners.

The threshold for higher tax needs to be increased, £50-ish k is not what it was 10 years ago, the CB threshold also desperately needs changing.

That said, whilst it would benefit me and I hope Labour consider looking at the tax thresholds for those around £50k, it wouldn't make me vote Tory.

A party considering policies to appeal to their core voters? Let me tell you I'm shocked!

It’s the 40% threshold they’re thinking of raising, not the additional rate, so it’s people on normal salaries that will benefit. I’m being dragged into this tax band even though I work part time as the threshold has been frozen for a while now and inflation is high. Our group rarely get any help and no longer get child benefit either. This will help a lot of people.

There aren’t enough top earners by a long long loooooong way to swing any vote for them. But he does want to keep the top earners’ money in the country – that’s different.

It's also the free childcare hours as well isn't it. I'm not on over £100k but understand that if you cross the threshold not only do you pay higher tax, you can't claim child benefit or the free hours which is actually worth a fair amount of £s. No wonder people find ways to reduce their taxable pay in order to qualify.

When are they going to do this? Before the election or promise it after?

Really. I am affected by Sunak and his freezing of tax bands but I think unless this is done before the election most people will properly say this is just rubbish. Base rate taxpayers would be outraged.

That’s article is shit. Very unclear.

at least find some decent Information on it

The headline is misleading because it's not the highest earners but those on the 40% band, which is middle earners really. Loads of ordinary people have been pulled into this bracket over the years because of freezing the bands.

It would make sense to scrap the withdrawal of the personal allowance over £100k, as it causes people to pay the excess into their pension, so no tax at all is collected. I’d be happy for the 45p rate to start at 100k, but while there’s an effective tax rate of 60% only my pension benefits, not the treasury.

The child benefit limit should also be increased (or preferably scrapped, as I think it should be universal).

Ok well let me spell it out.

The Tories' core voters are middle class people in their millions and retired people. The middle class are being pinched hard, the retired have lost their faith after Covid, partygate, lies and ppc nepotism scandals. The Tories desperately need to establish they are a stable, sensible choice that appeals to EVERYONE (because MC voters do also care about WC and don't want others to suffer) whilst making choices that will favour the MC as well. They need to be in touch, to repair the damage done. To soothe wounds.

Rishi has a stable marriage and seems sensible but his wealth is very off putting. People think he is an out of touch rich person who only cares about rich people. Rishi keeps validating this by pulling stunts like the one above.

If he wants to win the election, he needs to cap profits for the energy companies and supermarkets. He needs policies that will make everyone believe, if only for the 18 months until the election, that he is in touch and does care. That he understands what it's like to choose between heat or food.

Even with this, the lack of faith is so strong that people are unlikely to believe again in a party that has cheated them and lied to them. The disillusionment is very strong.

There will be all sorts of goodies promised by the government before the next election, in the hope of extra votes. If they get in again there is nothing to stop them changing their mind.

I wonder what effect that will have on inflation?

Bank of England has been raising interest rates to reduce money people have.
Tax cuts increase money some people have.



Tried to post a picture of the Laffer Curve 

Well I’m in the 40% bracket and I’m a humble civil servant. I would like to pass less tax but I would never ever vote Tory. It’s easy to see this for what it is - a never never bribe that few would be stupid enough to fall for.

Of course he does.
"I have friends of all classes. Oh, not WORKING class though!"

It would benefit us. I am on a very low salary in the Civil Service but my DP earns over £50. It would not encourage either of us to vote Tory though.

Actually, cutting/changing the tax band from 50k to higher would make a world of difference to the squeezed middle.

Without hurting the bottom line. And it would be plunged straight back into the economy. Those earning the 50+60k mark will have a disposable income again, and will want to spend it.

Also, I know a few people earning around 55k who know there is no point in getting a higher paying job unless it's a 20-30k raise, because after tax it doesn't make the extra stress and pressure worth their time.

And actually, not everyone on those salaries are spoilt rich people you know. Many of them come from backgrounds of abject poverty.

I agree with you

Yes child benefit limit should definitely be increased too.

I’m on £70k … I don’t want a tax cut, I would like the tax I pay to be spent to benefit the whole community (not just cronies of the Tories).

The one thing that really gets me is paying benefits to people in work (and working bloody hard), because the companies they work for don’t pay a living wage … but can afford to pay millions to shareholders. Using public tax to subsides shareholder payouts for private companies. Whoever sorts that out will get my vote (along with renationalising water companies & energy companies, providing affordable childcare, building council houses, and bringing in rent caps with greater protection for tenants) happy to pay tax … even higher tax.. for that

The threshold for higher tax needs to be increased, £50-ish k is not what it was 10 years ago, the CB threshold also desperately needs changing.

Completely agree. There's not much incentive to move from £49k pa to over £50k pa unless the payrise is massive as so much of the extra pay is lost to tax.