To ask how much you think income tax will rise by?

[Wonderofwimbledon]

We’re absolutely financially at our limit… I’m so incredibly stressed. An income tax rise will break us and we won’t be able to afford it. We won’t have money to eat.

What do you think it’ll be? I just want to curl up and cry- we can’t take anymore increases our bills , mortgage everything has increased we have no spare money at all

to put a number on it I think we are going to be £400 less disposal income a month- with increase bills

how we ride that out - I don’t know
we have teens - learning to drive, wanting to go to uni, as long as we can cover them rest is fluff really

I’m expecting the higher rate tax to drop to £45k,

That's insane, it's the equivalent to 25k in the 00s!

and the UK economy has been too reliant on “house prices” for far too long - many people have made huge sums on property for a while now

It's ridiculous how much we relied on house price growth to the detriment of everything else.

One thing i genuinely don't understand is how with all these tax rises combined with the cost of living is how anyone will have any disposable income and the economy will grow?

It won't, we haven't had proper growth since the crash & productivity has never recovered. But an aging population means more tax.

2p decrease in NI and 2% increase in income tax on incomes <£50k. So no tax change for you earning under this amount unless retired or relying on non-PAYE income streams like rent.

This makes sense

BUT… over £50k the NI rate will remain the same. So a 42% tax rate from £50k.

Why such a low threshold? As you say @MidnightPatrol there are already issues on the higher bands

a huge drag is public sector pensions. This needs to be switched to personal pensions like the private sector has ASAP.

And sit back and watch the rush of people wanting to become teachers and nurses then?

Thought we needed to retain good public sector workers?

No the drag is the amount of people in this country not working

Well - there is no sensible higher threshold they can start it at without the same problems existing - and the higher it kicks in, the less it raises.

Taxes on higher earners are already too high.

i think the drag, or enough of it, was leaving the EU.

The Money purchase annual allowance is now £10,000. Unfortunately people have been whipping out maybe a two or £3000 pension not realising the consequences.

Yeah well an evening spent researching online - the information is all there nice and free - before you start tinkering with your pension pot is surely advisable.

If people are going to be so passive and uninformed they really have only themselves to blame.

Quite. I suppose I was thinking of something contributing to the issues where there is potential to do something about it. The boat has sadly sailed regarding Brexit.

There’s multiple things, this included, but they are being made worse

I'd need to dig for figures, but I'm pretty sure the higher rates of income tax in Scotland haven't had the desired impact. Especially around the thresholds where there are some crazy high marginal rates.

That will get worse if rates in rUK go up as snp will have to do the same or cut spending due to the way the funding works. And like Labour they do prefer upwards taxes to cuts

No the drag is the amount of people in this country not working

🙄

Why the eye roll? Do you not think the lack of growth and investment in this country is an issue. The lack of job opportunities?

We even have newly qualified nhs workers who can’t find jobs. Shops are closing and slashing staff. Companies are cutting back on staff. We have a service economy but people don’t have the money to use services. Where is the investment in manufacturing type industries, incentives for businesses to invest in staff. Instead NI got raised and companies sacked even more staff

The lack of availability of timely healthcare and support services for the sick and disabled isn’t suddenly going to be fixed to get people back to work.

ive been on long term sick since June, I need an operation and I’m having it next week, privately. All the pre-hab I’ve had I’ve had privately. If I was using the NHS I’d have (and was given) totally unsuitable physio exercises a first clinic date months in the future and the surgeon tells me 18-24 month wait for surgery from there.

Lots of us economically dragging are waiting and getting sicker and more mentally unwell while we do so.

It’s all complicated and crap. The country has been stripped of so many services, life just gets worse, absence policies are applied that aim to manage people out. Brexit, Covid, the crumbling public services, Ukraine, Israel, climate change. It’s not one cause. It’s all just shit.

can we tax our way out? No. Not by focussing on targeting and vilifying the poorest in society. We need to stimulate growth, encourage entrepreneurship, build, repair and have a country people want to work for.

2p in the pound seems the general guess. They need to raise the money somehow to pay for all the benefits and luxury mobility cars. While the rest of us struggle on with our old cars and stressful lives.

I think they’ll increase by 2% and decrease NI by 2%. But for ‘higher earners’ I think maybe a 5% tax rise.

Id like to see them change their definition of a higher earner but I don’t think they will. I realise that money needs to be made somewhere though although I think it’s going to be hard for everyone except the super rich.

Why the eye roll? Have you seen the growth in out of work UC?

I wish that they'd go all the way with that. It won't affect poorer pensioners because of the personal allowance, but why should high-income ones get to avoid tax?

As much as NI falls?

it’s not just pensioners who will be affected - a lot of self employed people seem to manage to avoid paying NI at present

Many disabled people who like to work (or work more) but employers aren't particularly accommodating. I am a carer and can only work part time but are desperate to return full time but there is noone to watch my disabled adult child at home as social services washed their hands off us. What do you suggest people like us do???

Just absorb NI into income tax entirely. Closes a few loopholes.

The high marginal rates of tax do need looking at.

I didn’t mention disabled people.

I think disabled people should be supported and if there was better funding available by having a healthier economy perhaps we wouldn’t have people who have a genuine need being kept on the breadline.