Tax increases imminent

[Iwishicouldflyhigh]

Heavy hints that taxes will rise in the next Budget after the recent climb down (as the ‘taxes won’t rise again’ was based on a 5 billion saving in benefits).

I can’t lie, I’m so pissed off about this. I don’t think anyone wants to see someone who is genuinely unable to work to be further penalised, but we all know there are thousands of people who could work but don’t.

this country is going to absolute shit . We pay more and more for less and less.

We don't think Reform will deliver better services. We think they will deliver less services. The state doesn't need to be nanny so many people who should be able to look after themselves.

I think Reform will speed us towards a crash but all Labour are doing is managing us slowly towards it instead.

Reform are bonkers but at least with them in the driving seat I’ll have a few quid back in my pocket from tax cuts to help me weather the shit show and the public will get the massive collision with financial reality it badly needs. After that, things can be reset on a more reasonable and responsible basis.

Agree. Already it’s estimated that, this year alone, over 16,500 millionaires will leave the UK. Whether you think ‘good riddance’ or not, the minimum tax per year that each millionaire would otherwise contribute is >500k. That’s over 8 billion a year, every year, that the country loses from its coffers. That pays for an awful lot of PIP payments!

And that 8 billion doesn’t cover the cumulative effect of their staff and businesses also leaving, nor of lost expenditure such as restaurants, rent or shopping they do.

If that rate continues even for a few years, then the UK will forfeit tens of billions every year that we are sadly unlikely to get back, and will have much less chance as a country to balance the books without massively increasing taxes on the ‘middle earners’ and/or decreasing public services for all.

I’ve been looking into this recently as more of our clients are relocating this year or are thinking about it! Many of them have dual nationality or are non-British so don’t really have many qualms about leaving from a ‘citizenship’ perspective; often they already lead quite international lives.

Although this is only my opinion based on conversations I’m having lately, the general perception is that the wealthy no longer feel as welcome or safe as they used to in the UK. Some of this is caused by Brexit, but the non-dom changes (even if they aren’t non-doms), the VAT on school fees, the long NHS waiting lists and the perception of rising crime and of a general ‘eat the rich’ narrative also pay a part.

It is worrying to me as we are, in the UK, already more dependent on higher earners than one might expect. We are more reliant on high earners than, say, the Scandinavian model (which generally taxes all workers heavily, not just the highest earners). Over 60% of all income tax receipts comes from the top 10% of earners - which is anyone that earns over £59k approximately.

Even if one’s political leanings tempt you to ‘tax the rich’, my view is that the indirect effect will paradoxically result in higher taxes for all.

Half my facebook ( Nurses and teachers) are taking them at 55 and working very little or very part time after.

It happens in social work too - retire early and then come back on extortionate agency contracts. I actually think if you’re drawing down a public sector defined benefit pension scheme you shouldn’t then be allowed to go back and work in the public sector. If you’re in need of additional income, or in need of fulfilment go into the private or third sector but double dipping the public purse shouldn’t be allowed.

Labour pledged as such at the GE so I guess ask them why it’s not inevitable

Ask who? Our services have been starved of investment for years and we have an aging population with a birth rate that's fallen faster than predicted. And people don't like immigration. How can taxes not increase?

This 100%

@Rosscameasdoody Why are they disadvantaged?

They are given additional benefits to cover their costs - both groups and they would usually fall into the lower income groups so this would cover it.

If their conditions are well managed then they should not need much more access to GPs.

As is often mentioned many disabled people work and may have higher level incomes, as do older people/pensioners - if they have a higher income, they should pay higher charges for the services they take - otherwise you are asking poorer people to subsidise them.

Half my facebook ( Nurses and teachers) are taking them at 55 and working very little or very part time after.

very common in the police

To say your taxes are 60% is misleading, as you well know. We all get a tax-free personal allowance, then the first band at 20% etc. People earning enough to pay higher taxes can afford to pay more. They don't necessarily contribute more to society, have more responsibility or work harder than those on lower wages - many are just lucky that they ended up in well paid jobs.

Ask the politicians who pledged not to raise taxes ie Labour

What a load of codswallop !! If Child Benefit had been the subject of the ill thought out cuts government tried to make to PIP, this would be a very different discussion. Means testing is a race to the bottom and the thresholds set traditionally low for benefits, so all it does is push people with additional needs into poverty. And means testing state pension just encourages fecklessness. Why strive and make provision for yourself when government will do it for you if you don’t ?

People earning enough to pay higher taxes can afford to pay more.

The higher tax rate starts at £43k, that’s a main grade social work or teaching post - not sure there’s much wiggle room in that to be paying more tax.

But then who ends up penalised most if the state pension is means tested or we have to pay to access the NHS? Middle earners or those just scraping into higher tax thresholds again.

Aside from people with genuine health problems, it will get worse at this rate because there really is becoming less incentive to go out and work, especially if starting out at the bottom on minimum wage.

Making work pay - really?

Didn't see all the disabled people protesting when the government introduced means testing to high earning parents who previously got child benefit. Quite rightly if earn enough the government should subsidise children.

Labour should have just committed to what they put forward originally and then tax rises wouldn’t be necessary - now they will annoy more people. Should have stuck to the 1 billion WFA clawback and the PIP amendments to get the other 4 billion back. Those against WFA cut will never vote or support anything Labour anyhow - so why they gave that up is beyond me. And PIP there was public support to reduce/amend.

Now Labour look so weak to everyone and will seriously annoy those who do/would vote for them with tax rises.

most on the ground have empathy fatigue as are working for less and less.

@Jellycatspyjamas
Spot on

Think you meant to quote someone else

The benefits for disability don’t ‘cover’ the extra cost, they contribute to it. There are enough studies out there proving that the true cost of disability is around 30-40% higher than the benefits meant to support it. That’s why we have exemption from prescription charges for disabled people with certain conditions and certain services and aids provided free. The very fact that you think it will encourage people into a more ‘well managed’ condition is a cause for concern in itself.

Ask the politicians who pledged not to raise taxes ie Labour

Why would I believe a politician?

I laugh when people say they'll leave the country and go where? As if the only people left will be those on PIP whilst all the lower, middle and upper earners will have swanned off to another country.

I also think we had 14 years of the Tories but yeah ok, one year of Labour and everything is their fault. People just like to moan on, no solutions just moaning and statements like people will leave🤦🏻‍♀️

I'm still waiting for the Brexit benefits....

If Child Benefit had been the subject of the ill thought out cuts government tried to make to PIP, this would be a very different discussion. Means testing is a race to the bottom and the thresholds set traditionally low for benefits

Seriously child benefit is what £100/month for one child and parents loose it when someone earns £80k. And the financial gymnastics of someone earning £4,800 to hold on to £100 is ridiculous. And is precisely the problem, no one is prepared to give an inch on what they believe they are entitled to, nor are they prepared to pay anymore to fund it. Stalemate.

Higher earners don’t receive a tax free personal allowance. They pay tax on every single £ they earn.

Think all this just went over the heads of the rebel MPs.

Many disabled people are parents themselves so would have been subject to the same means testing where appropriate. And by the same token I didn’t see any support from parents with children in the recent protests about cuts to disability benefits. Having children is a choice. Disability is not.