Labour planning to freeze tax thresholds longer

[Overthebow]

In the news today that they’re considering freezing the income tax thresholds past 2028. AIBU to think this is absolutely a tax rise for workers? I can’t believe they’d do this, they’ve been frozen for so long already.

That's not the question I asked you, but I expect experience should have told me that hoping you'd answer the question you'd been asked was rather optimistic. Never mind.

Very happy

looking forward to the budget now, as dh works he shouldn’t be paying any more tax….

I thought you’d dodge that one. Never mind.

I guess you thought yes those tax rises will happen. I doubt others will be as happy about that particular lie.

I doubt if you really want to get into a conversation about dodging questions. Have a pleasant evening.

I was going to say something like this. God knows I am no fan of Labour but if there is a massive shortfall then it needs to come from
somewhere. Labour have taken away / means tested the winter fuel allowance and are putting VAT on school fees. These will (largely) affect the electorate who tend to vote Tory. But it isn’t enough - they need to tax everyone to raise enough.

The problem is that so many people think they should tax “the rich”. Supposedly those earning over £50k make up the top 15% of earners - I don’t know many people earning that who would class themselves as rich.

Yes, the money has to come from somewhere. It just seems that many people expect "someone else" to pay for it. Personally I think they made a mistake in promising no rise in so many forms of taxation - it boxes them into a corner. However I remember the Lib Dems once having tax rises in their manifesto. It didn't end well.

There has been lots of this everywhere though, not just on MN.

I'm not saying I agree with it. I'd rather the most wealthy pay their fair share, but I will wait until the budget. I think going after benefit claimants are really low, especially the disabled since we have barely functioning services at the moment, but again,t that's speculative until it is official.

As opposed to virus helping Rishi, shagging, lying criminal Boris, lettuce Liz and Kamikwaze Kwarteng then?
Stupid names are stupid whoever employs them, but it’s a bit shortsighted for a Tory to try it…

They will. PIP reform will be looked at 2025. They are agreeing the £ cuts to welfare the Tories suggested will still need to happen in some form. You can’t have such a huge percentage of the population not contributing. 25% of the working population are now economically inactive. That’s before you get on to the growing number of elderly. It’s not low. It’s realistic. The problem is - they were not honest about it. The Tories were to some extent. Not that I’d vote for them.

I mean it doesn’t concern me, I’m not fussed either way

If Labour were just hiding tax rises to get votes as you suggest I doubt everyone will think that’s a good thing.

The problem is, how do you define the most wealthy? A household income of £81,357 puts that household in the top 5%. One person earning that is getting a good wage - but for most people that will be the combined wage. Despite being in the top 5%, people in those households won’t feel rich … and they may have a whacking great mortgage to pay.

You could set it as £180k but that would only catch the top 1% of the population. A slight increase to taxes on 1% of the population won’t raise enough - and a penal increase will encourage at least some of those people to move elsewhere or to change their behaviour (such as paying more into pensions to bring their income below the threshold).

It's sweet that you know what I suggested better than I did. By the way, for clarity, "have a pleasant evening" is a polite way of declining further conversation with you. I'm sure you won't be fussed either way 😉

I was amused that it would be an issue, I mean it’s really not. And yes if you don’t reply I’ll be fine.

In your words However if they'd laid that out explicitly it would have affected their vote.

This was what I was referring to, I don’t think it’s going to go down as well as it is with a few on here

Not opposed at all. All those you name and Starmer and Reeves are weak of character, unqualified in what they do and not brave enough to step up to the challenge.

Two wrongs do not make a right. I am not as polarised as you.

The state needs to get smaller. History tells us that Big State is inefficient and reduces opportunity and values. This pair of imbeciles - they really are because they do not know how to lead - will not be around in three years. Mark my words if you will. I hade so much hope, but now I despair.

@cardibach

@Fescue the hypocrisy is breathtaking

@Fescue totally agree

A bit like Blair after major people had enough of tories and major!!..

People had enough of tories again and voted starmer and it's like kids in a fucking sweet shop.

Grabbing this and grabbing that " we have power now"...

I'm a swing voter, I felt we needed change we did but this lot!! How embarrassing.

We need a basic quorum of cross-party support for policies. In fact voters should vote for strategic policies first and then have a secondary vote for those appointees who can deliver. This is bringing back democracy to what it was.

Their mistake was setting out taxes they wouldn't touch. Thus limiting their options. I don't quite know where people expect the money to come from for improvements if not tax rises. But somehow it's always someone else who should pay that tax.

Income Tax thresholds used to increase by inflation. If inflation is 2.5% over the next few years, the effect of freezing the current personal allowance at £12570 will be:
2025/26 - extra tax £62
2026/27 - extra tax £126
2027/28 - extra tax £192
2028/29 - extra tax £258
So in the 5th year of this Labour parliament, you will be paying £5/week extra tax due to this freeze.

(This applies to everyone earning from £13000 to approx £46000)

With the minimum wage as at April 2024, someone working 21 hours a week currently earns over the personal allowance and therefore pays income tax.

Assuming the minimum wage rises, the freeze of personal allowance will drag more and more of the LOWEST paid workers into paying tax.

That is the real betrayal of Labour if they follow through with this policy.

It's an absolute cheek. Lower paid folk squeezed harder than ever. It's awful. Then more benefits doled out for a myriad of reasons a lot of people don't even know about. Sick of this Labour lot already. But I don't like the Tories either. They're finished with one of those two left in the leadership race in charge.

This is where people WILL get annoyed. The reality is - lower earners are protected compared to many comparable countries. They have a huge personal allowance and a very low base rate. They pay some of the lowest taxes in the world. Relying on a shrinking minority of “higher earners” (who pay high taxes comparatively) is why we don’t have enough money.

Problem is, Labour were not honest about it. Everyone thought it would be freebie central. Issue is, we have such a small amount of people
contributing more than they take out -there is nowhere to go.

Imagine putting the strategy of the country in the voting public's hands.
Look what happened with Brexit...

Putting the strategy of the country in just a small number of hands is autocratic. Look what's happening elsewhere.......