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)

They've bought your vote, then? Hmmmm.

The Laffer Curve has been much criticised by many economists. It isn't an automatic argument winner .

I'm on the fence with this one.

Of course the Tory's will do everything they can to keep the votes if the wealthy, why are you surprised?

HOWEVER, it's the 40% tax bracket they are talking about increasing so it's those earning between £50k - £125k that will benefit.

I'd argue that £50k doesn't necessarily put someone in the super rich/wealthy bracket, especially if they are the main breadwinner and they have a partner who is a SAHP. So in reality, it is the average working family who need it and will see the most benefit.

They are still only doing it for votes though!!!!

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.

A million % this!!!

It (as all the ‘policies’ the Tories will float over the next year) is bollocks. They know they won’t get in so will never have to implement them.
The focus for them now is trying to reduce party infighting, gain enough votes through these ‘promises’ to avoid complete wipe out and have something to throw at government from the opposition benches. It’s a lame duck government from now until the election focussing on party not country, not good for anyone.

I totally agree that the 40% tax bracket needs to be higher, from the OP I assumed you meant the top rate which I would disagree with in principle.

The rate for 40% tax hasn't changed for years and as its used for the CB calculations it's not enough esp as not based on household income, this would include single parents. If you live in London or the South as much as people on MN love to race to the bottom it is not a big household salary. A small 2 bed house where I live would not be affordable on a single parents £55-65k salary currently as obviously everything has increased in cost now so to not realign the tax brackets accordingly is wrong.

It’s actual middle earners that will benefit, as the 40% higher rate of tax starts on earnings too low . It’s no good helping the nurses etc out of poverty only to hit them with high tax. wages have risen overall but too many people go straight into higher tax despite not being able to pay their bills.

France tried increasing tax on higher earners and they just left the country. When you earn enough to be able to just jump ship, you just jump ship. When you're already having almost half your earning taken and a Government wants to take even more, it's all well and good if the country is actually being run well but when it's a shit show then no, of course you're not going to put up with having even more taken off you. Keeping the wealthy in your country is a benefit, though those who don't earn as much always seem to think milking people as much as possible is the way to go, though I seriously doubt were they in the same position they wouldn't be singing the same tune when you have to lose most of your pay to live in a country with high crime rates, shit police, crap medical care, and to top it all off a fascist Government that has you arrested for saying a man isn't a woman.

I have to say I think this is an excellen idea. As a higher rate taxpayer I am only managing to save about £1000 a month, mostly into a pension. A tax cut might mean we decide to go on additional overseas holiday each year. Definetely the main problem facing the country.

We are talking people on 50-60k a year benefitting though, not a chance in hell a single parent with 2 kids on that salary is saving £1k a month FFS unless they are living in the cheapest area in the country.

I'd argue that £50k doesn't necessarily put someone in the super rich/wealthy bracket, especially if they are the main breadwinner and they have a partner who is a SAHP. So in reality, it is the average working family who need it and will see the most benefit.

Quite - you wouldn't say two people earning £25k each were a high income household, yet they will take home much more than a single parent household on £50k.

Cutting stamp duty will just cause house prices to rise again.

That is the aim. To ensure no young person votes Tory.

Although when the 50% rate that Gordon Brown introduced once he’d spend most of the rest of the money was cut, tax take increased from additional rate tax payers increased….

There are 3 big things that need fixing - the higher rate (40%) threshold needs increasing, and the penal 60% tax rate between £100k and £125k needs removing and NI and income tax need combining. £12.5k tax free for everyone, up to £60k at 20%, up to £150k at 40% and 45% above that. Get rid of the upper earnings limit on NI, and roll it into tax so everyone pays it - not the 2% we pay now. Bring in a 50% rate if you like, but I don’t think it’ll work. Further more, over time the personal allowance should equal the amount earned in a full time role on minimum wage.

The other problem with simplification is that you’d need fewer civil servants, and labour / the unions will never let that happen…. Also, you’d need fewer tax advisors, and the tories would never allow that either!

Unfortunately the majority on MN won't see this though, there is a sweeping assumption that someone paying 40% tax is rich but depending on circumstances they really aren't.

Agree with this. The CB threshold need changing. A single income family on £60k gets nothing whilst a dual income family earning 50k each would qualify.

There are also the millions, working and on pensions who would welcome an increase in the current personal allowance from £12.5k to something more akin to the actual minimum amount on which a single person can live.
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It is shameful that someone on certain benefits can get away with paying no tax yet others on the same income have to pay tax they can ill afford.
That would be a vote-winner. My sympathy for £50k + per annum income is wearing very thin.

So was I.

Correction, I posted in haste.

The aim is to please the landowning, property owning, house building donors to the Tory party.

You should try and look into it before getting outraged. Raising the higher rate threshold is entirely sensible. It makes no sense that you start paying 40% tax as exceed £40k salary band.
Lots of people make that kind of money like HGV drivers, people in the trades etc. It disincentives people from working more and contributing more.
Everytime, tax rates are lowered it increases tax take. Every single time. If you don’t want to raise the threshold for ideological reasons, and would rather forego the additional tax paid, then there is no hope for you.

Most people on £50k per year can’t save £1k per month, especially living in the south and having kids. You personally may be able to if you earn in the upper end of the tax bracket, but raising the thresholds would benefit the lower end who do struggle with bills and childcare costs.

Anyway people can stop frothing, it will never happen. This country is on a fast trajectory to a low income terminal decline. You can then tax £0 at 100% and be happy with that.

In the South as a single parent with 2 kids just into the 40% bracket absolutely no chance if you are paying a mortgage. Maybe if you are on the higher end of that bracket. On £70k you'd be lucky to have £1k left to save. My very normal terrace 3 bed house is around £400k now so the mortgage would be ridiculous.

Tbh I think the 40% threshold needs to be revisited for sure. The £50k hasn’t increased in a long time and with inflation £50k isn’t what it used to be.

Although when the 50% rate that Gordon Brown introduced once he’d spend most of the rest of the money was cut, tax take increased from additional rate tax payers increased

That was actually a one off result of people timing their tax claims, and then the tax take went back to normal. It’s a common myth