COVID-19: Those earning above £19.5k should pay more tax after pandemic to help fix UK finances, says think-tank

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Your thoughts on this?

news.sky.com/story/covid-19-those-earning-above-19-5k-should-pay-more-tax-to-help-fix-finances-12130088

How should the debt be clawed back? What would you do if you were government to raise the money?

I'm fully expecting that as an NHS frontline worker (in ICU) my 'reward' for the ridiculous hours I've worked in this pandemic will be a pay freeze and increased taxation.

@FirstTimeHome

I think that those of on furlough should pay more tax. Why should I, just because I earn over 19,000, who has worked all throughout this pandemic, pay more tax back just because I earn more

No-one asked for their work sector to close sweetheart. Furlough wasn’t a choice. They’ve already been penalised by not being able to work and losing 20% pay - why on earth would you penalise them again with even more tax?!

@Myalternate oh yes I don't think in a million years it would actually happen, but it would seem fair. Nonetheless, life is not fair

@Myalternate is that because it’s hard to get money off that age group? Or you don’t think they should pay?

Can’t believe the vitriol here towards those who have been furloughed! I work in non essential retail and so have spent a lot of time on furlough over the past 12 months. I earn not much more than minimum wage and have really struggled on 80% pay. I’m only just keeping afloat. Trust me, I would much rather have been at work.

I thought about finding a temp job, but when I mentioned my idea to friends, they were disgusted and said I shouldn’t “play the system” by getting a second job. That I would be “taking it from those who had lost their jobs and really needed it”. They didn’t seem to consider the fact that I would be paying more tax if I got a second job.

I’m now volunteering at a vaccine centre as am completely sick of being at home all the time and want to give something back. I’m aware that I’m very lucky to be receiving furlough money and felt that this was a way of being useful and productive during the pandemic.

Do I deserve to be financially penalised? Should I have to give some of the money back? I’ll end up losing my house and having to claim benefits.

ChocOrange1 The difference between you and I in this scenario is that you have been able to live to more or less the same standard as my husband and I, whilst you have obviously not worked full time. You would have the opportunity to work more which could push yourself and your husband back up to the living standard you achieve now. Whilst I would more or less be forced out of work. Do you see the difference?
I do feel that as a collective people, we should pay this back together somehow, but the thresholds should be in line with the national av. wage to ensure people are not forced into poor living standards.

By the way I completely agree that there should be some kind of plan to recoup a contribution from the retired generation in principal, those with extensive savings etc. I just don’t know how it could be managed.

Here’s a thought. How about we tax the mega wealthy just a bit more to pay for it? Their level of tax is already disproportionately much lower in comparison to us plebs.
Now is the time to teach further into their pockets and help pay for Covid.
The idea that we start near the bottom rather than the top, is absurd but unsurprising.

@BeakyWinder

Furloughed workers aren't scroungers, but some have had the best part of a years free wage to sit at home! I've worked every sodding day, not even a 2 week isolation, why should I pay for this and not them?

Everyone who has received furlough and grants should have their state pension age pushed back. Plenty of time for most to plan for working longer, to compensate for the time they have had off now.

Nobody deserves to be penalised. Except tax dodgers, who will get away with it anyway.

We're all going to be paying for it. In some form or other. For years.We're doing ok financially. It's been a massively stressful year, as it has for many. Dh has been working on Covid wards doing high risk stuff. I've tried to home school 2 primary and one secondary child. While working long hours with endless online meetings.

I will resent paying more money. It's been hard, and we've earned it. But we will pay it. Because we have it.

Paying for Brexit on the other hand. I would fight that.

Terrible. 19k is NOT alot of money for full time. It doesn't cover much in the south east.

@Lifeaintalwaysempty 100%.
It should be a proportional increase not the same amount across the board with vastly different consequences.

Everyone who has received furlough and grants should have their state pension age pushed back.

Why are people so stupid?

Can’t believe the vitriol here towards those who have been furloughed!

They are the new benefit scroungers apparently. As someone who couldn't be furloughed because they are fortunate enough to have a public sector job why is the burden on people who through no choice of their own couldn't work? Plus furlough was also there to encourage people to "stay at home" & keep civil order because you know virus!

Latest news is that the personal allowance is going to be frozen at £12,500 and the higher rate tax threshold will stay at £50,000. This will mean more low paid workers paying tax and more people paying tax at 40% on a portion of their earnings. It will affect a lot of pensioners as well as workers of course, since pensions are taxed and a lot of pensioners have an income of £12,500 +

[quote beckypv]@Myalternate is that because it’s hard to get money off that age group? Or you don’t think they should pay?[/quote]
it will be virtually impossible to get money out of someone living in a care home. Their pensions are already taken to pay for their accommodation.

Targeting those who have benefited most from Government money would be a good place to start. So furloughed workers, restaurants who took part in eat out to help out, etc

I think that those of on furlough should pay more tax. Why should I, just because I earn over 19,000, who has worked all throughout this pandemic, pay more tax back just because I earn more

The level of ignorance and bitterness some people display is astounding!

Being forced through no fault of your own to be in furlough limbo and waking up each morning wondering whether you will still have a job to go to and how you are going to pay the bills is shit. All the pictures of people living it up sunbathing in their gardens and tackling the DIY is just a shiny veener to stop them spiralling into that pit of despair - it wears thin after one, two, six, twelve months of furlough.

Furlough does not mean full pay - it results in people losing a significant chunk of their income over time whilst still having the exact same bills and financial commitments as they had whilst bringing in a fulltime wage. For some, the basics of electricity/gas/water/food has increased due to being at home all day every day yet furloughed workers don't have the luxuary of claiming the tax relief on those additional cost like their wfh counterparts. But yeah, lets kick those people in the teeth even more by making them bear the brunt of paying back the debt from their already severly hit incomings!!

Tell me, will you be making full use of services such as theme parks, cinemas, theatres, softplay etc etc (thanks to the fact you were still able to bring in a wage) when they fully re-open because the only reason they will still be here is due to the sacrificial lambs that were the furloughed employees!

I already pay more tax than the average wage, so (rightly or wrongly) feel like I am helping to fox them.

Of course we shouldn't tax those on furlough more. Many are in low paid hospitality work and many won't have jobs to go back to.

Time for a wealth tax, I think.

I will make a bet - that in the near future VAT will rise
As members of the EU rises in VAT were limited to a certain amount
Over my (long!) working life vat has been
12 & half% with 25% for luxury or electrical goods
than I think it was 15% for everything?
now 20% with exceptions
en.wikipedia.org/wiki/Value-added_tax_in_the_United_Kingdom

I think income tax is quite unfair, many youngish people have had wage stagnation, crappy savings rates, higher VAT (wasn't that a temporary measure?), etc,

I don't really know why people keep using the excuse of 'well I've worked all throughout the pandemic so why should I pay more tax'. You do realise that furlough payments are taxed in the exact same way as a wage (and since August those costs have had to be met by the employer, not the Government) so its not like those fortunate enough to have had a guaranteed job throughout the pandemic are the only ones who have been contributing to the public purse.

It's cause they don't think, period.

@SittinOnTheDockOfTheBay what a load of shite.

Pffft.

I'm the lockdown skeptic who always thought we were paying too high a price for the amount of life years saved.

But when it comes to the actual bill, I can live with it.

In meantime, MNers, often loudly full of shouting about how virus measures should be stricter, no price to pay is too high -- are moaning about the inevitable higher tax bill. Making crazy suggestions like put the tax on the furloughed or Jeff Bezos. It's like you didn't know what you were supporting all this time...

I thought I was supposed to be the blinkered ignorant selfish twat not thinking of others. hahahahahahaha