AIBU Income Tax rise.

[H202too]

To be panicking about income tax rise.

Things are tight and to loae even £30-60 a month will be difficult.

I know people are talking about the mansion tax being a no go. But I would prefer this than taxing the workers as per usual.
The tax free rate should be put up. What a mess.

Interesting, when this has been discussed previously, the majority on MN said they wanted to pay more tax for better services? That is what many opined during the private school VAT raid. Now the raid is on everyone’s pockets - we aren’t so keen? What a surprise. I’ve said it hundreds of times, but I’ll say it again: you’ll all have to pay. Taxation is for the many, not the few. Scandinavian countries where services are robust take more money from low and mid earners. I couldn’t be less shocked that Labour will be going after everyone…

Don't. I've been working my bollocks off all year to land a pay rise. It's been agreed to start next month, and it looks like I am not going to end up being much better off. Im working so hard and just feel like I'm treading water.

I mean if things actually improved I think most people would be on board. I can't see Health and education, utilities improving though.

Would love to be wrong.

It is absolutely shit!

If things are so tight for you I imagine you can’t pay for private healthcare?
If you have children, I guess they go to local schools?
You probably don’t have your own security team?
If so, surely improved public services are in your best interests?
You will be a net beneficiary, not a net contributor.

Is this the increasing income tax but cutting NI by the same amount? So it wouldn’t impact the average worker so much but would hit pensioners and higher earners?

I’d rather pay more tax and I already pay shitloads of it. I’m also getting hit by massive stamp duty fees and a massive mortgage. Hoping to avoid a property tax if that materialises.

i’m a ‘high’ earner but due to living in London, we are having to borrow a lot to buy a house so whilst on paper we have a very good income, most of it will go on a mortgage and child related costs.

Starmer does not care about you if you work and do something to look after yourself and your family
You have to support others - that's how socialism works

Everyone thinks other people should pau more tax not themselves.
T'was ever thus

Hanging onto every penny you earn works well for the rich who could still afford to look after themselves if public services were to disappear tomorrow.

For the rest of us, income tax makes great sense. Okay so we might be contributing an extra £30, but it’s proportional to our income. Mr Moneybags down the road will pay £300. And the Police and paramedics will come just as quickly to us as they would to Mr Moneybags. In fact Mr Moneybags is probably in better health than we are and comes across less crime, so we gain more from the public services than he does.
So we may ‘lose’ £30 but it’s absolutely worth it for the lowest earners, it buys us help we could never afford otherwise.

How to spot a Farage groupie!

Yabu.

There are too many problems and they all cost too much to fix. Tax has to rise. The wastefulness of public services is beyond repair; public productivity is rock bottom.

All the time, money and energy we devoted to Brexit and its implications was a massive distraction from fixing our real problems. And what have we gained? Nothing as far as I can see.

I do sometimes wonder why I worked so hard to get good grades and took on student loan debt and paid thousands towards my professional qualifications and CPD etc if all I am seen as is a cash cow to be milked. Why should children work hard at school so they can aspire to earn more money, only to be told they have to pay for everything. I honestly feel like such a huge weight on my shoulders with all these tax rises. My husband and I for the first time have talked about transferring to Dubai just to get away from it all for a few years.

If they raise income tax and reduce NI that would raise money without affecting working people. I am a pensioner so would pay more.
Hard to argue against this especially they seem unwilling to rethink the triple lock. I would replace the triple lock with an average of the three measures.

I'm in Spain, where lower and middle-income earners pay more tax than in the UK and the personal allowance is lower so only the first €4,500 is tax-free. This means I pay more tax here than in the UK, but the services are better.

If you want all the services in the UK - SEN provision for your kids, universal credit and PIP, NHS etc. than someone has to pay for it, and it doesn't seem that fair to keep heaping tax on higher earners who probably don't use those services as much. A few very high earners I know have left the country, as they are tired of paying so much tax.

Individuals that are only just in the higher rate of tax are paying upwards of £1700 a month in tax & NI. Whilst getting exactly the same NHS, education etc as the millions that don't work.

Yep, that’s what all the private school parents said. How much additional funding have state schools received to date?

That was floated by a think tank, but I’m not sure it’s been leaked out as what the gov is doing. I could be wrong though.

So? I’m paying more than a lot of people to use the same services. Why should I do that?

SOMEBODY has to pay or there’ll be no services at all.

Instead of wanting any rises taxes at all remember this

"But I have made an important choice today to keep every single commitment that we made on tax in our manifesto. So I say to working people, I will not increase your national insurance, I will not increase your VAT, and I will not increase your income tax.
Working people will not see higher taxes in their payslips as a result of the choices that I am making today. That is a promise made and a promise fulfilled"

Reeves, '24 Autumn Budget.

Personally, I think they need to tax passive income at a higher rate.

The resolution foundation suggests this and their former chair is the now pensions minister so is close to decision makers. But rising income tax by 2% and dropping NIC by 2% only raises £6bn and we’re looking to raise £30bn. Maybe a 3% rise to the basic rate and a 2% drop in NIC is more logical.

Either way this is an excellent step from Rachel Reeves. The basic rate of income tax is so much lower than in equivalent EU countries and yet we want their services, and every tax payer pays the basic rate so increasing it brings in lowers of money.

Why are things so tight for everyone right now?
We never question that. Why are supermarkets putting their prices up almost daily but not seeing a dent in their profits or share holder dividends for example?

There is more going on that is causing us all to feel poor than this suggested tax rise.

Such as? Increasing the dividend tax rate?

Or maybe someone who remembers this

Labour's manifesto is, "fully funded and fully costed - no ifs, no ands, no buts… no additional tax rises."

"I have been very clear that every policy we announce, and every line in our manifesto, will be fully costed and fully funded."

“Nothing in our plans requires any additional tax to be increased.”

“We’ve got the Office for Budget Responsibility now… You don’t need to win an election to find out [about the public finances].”

“I don’t believe that fiddling around with tax rates is the best way to grow the economy.”