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What do you think of the 5% tax hike for those earning more than £150k - good or bad?

1000 replies

soapbox · 24/11/2008 17:29

????

OP posts:
DorisIsAPinkDragon · 25/11/2008 17:40

New businesses are still opening though cote not as many but there are still some, I don't believe that people are going to cash it all in and start again abroad as this is an international crisis and nowhere is immune.

Many will ride it out and watch and wait.

mummypoppins · 25/11/2008 17:49

Look everyone its an interesting debate.

The fact of the matter is that my income is not in anyway guaranteed from one year to the next as I am self employed. There are good years and sometimes very bad years and with that comes all the risk of funding a business etc. In the bad years I still pay my staff whether I earn any profit or not.

In the good years I save significant chunks to fund over the bad years so that neither I nor my family would become a burden on the state should the worst happen. I prefer to make that provison for myself rather than being taxed out of it into a big black hole that this government is creating.

What the chancellor is trying to do is put money back into the economy . Taking it from wealthy individuals as tax will not do that. The reality is that I will not have a major crisis over it but I might only have 2 hols next year rather than 3 !

The people who will really lose out will be the middle earners.........30 to 70k a year. Just into the 405 tax bracket and I know as we were there for years when we had a very young family. We didnt qualify for any help with childcare costs at all or anything else for that matter and we were broke.

The bottom line is this is just the start. The wealthy entrpreneurs will leave ( and the lawyers like me who will just go and work remotely from Spain / France etc ) and it will be the middle earners who pick up the tab.

Please listen to all the arguements on this thread. Many of mine have been tongue in cheek. In RL you would be suprised if you met me. I am quite an unassuming generous person . Im often found sneeking out to the toilet at the right time in a resturant with friends to settle the bill before anyone finds me out because I do realise how lucky I am .

The moral is however dont vote Labour again..........we are in enough of a mess as it is !

noonki · 25/11/2008 17:54

I heard on the radio that most of those above £150K are people who would find it difficult to move abroad; lawyers, barristers, consultant doctors, with a small majority able to up and leave.

Also given the current economic climate it isnt going to be easy to up sticks and take your business elsewhere. And if it is more attractive elsewhere, this isnt going to be the big problem.

What the government needs to do is close up all of the tax loop holes that rich people do; the 'my wife is my secretary'marlarkey and pay her a wage. If they caught a few of them doing it and get them done for fraud that hopefully will deter more people from what is basically stealing.

noonki · 25/11/2008 17:56

mummypopins - do you really believe a tory goverment would have stopped this situation?

mummypoppins · 25/11/2008 17:57

Intersting noonki...........the proposals to outlaw this were put on hold yesterday........not a votewinner you see.

mummypoppins · 25/11/2008 17:58

Noonki we have been through recessions before and yes I dont think we would be facing this much debt. That is the reall issue........spend spend spend and the money has run out.

CoteDAzur · 25/11/2008 18:00

Doris - If you are going to argue new businesses are opening at a healthy rate, please provide figures.

While you look for those figures, do note the rapid increase in unemployment and spare a thought for what that means re new businesses.

It is surprisingly naive to expect new businesses to sprout a company closes shop during a recession.

The good times when that sort of thing happened is over, and won't be back for a long time. Adjust your expectations.

DorisIsAPinkDragon · 25/11/2008 18:02

I do agree that labour have spent us into this situation and plan to spend more and then jump ship.....

susie100 · 25/11/2008 18:03

Noonki I agree - loop holes like this are absurd.

I hate the way that as soon as you talk about a higher income or anything vaguely associated with being 'middle class' you don't talk or complain, you 'bleat'

TheCrackFox · 25/11/2008 18:03

I think the point is that all these successful business people spouting that they will just move abroad would have to, perhaps, sell their business first. Nobody would just shut a profitable business and not sell the assests. If nobody has any money to buy an established business then it looks like they are stuck in old Blighty for the time being.

KatieDD · 25/11/2008 18:06

No fox they leave the workers to run the business and cut their salaries, whilst the owners move abroad taking their savings/equity with them.
Which ever country makes itself most attractive to the Russians will be the winners in all this.

TheCrackFox · 25/11/2008 18:07

You would have to be mental to have business dealings with Russians (I am half Russian.).

mummypoppins · 25/11/2008 18:08

Agreed Katie DD that is exactly what they will do.........look at the Barclay Twins !

DorisIsAPinkDragon · 25/11/2008 18:08

Cote i didn't suggest that it was at a rate that was the same as during a boom just that it didnt dry up completely, I read an article that suggested that it wasn't as bad as many imagine as the pound falls, exports become more attractive etc I don't have stats and I'm not going lokking for them

fwiw I feel that if you have built up a business in this country you are less likely to be mobile in a recession to start up in a new country with a new client base (this obviously excludes multinationals) due to the fear of banks lending there aswell, I do feel that those saying they are going to leave is a scare tactic... (which has traditionally worked)

PSCMUM · 25/11/2008 18:09

i think its great. tax the rich, make them pay, tuition fees? no way!
sorry I just had a leap back to my university days!
anyway yes i think it is good, i don't think it will make rich people move abroad, we know plenty of people earning that amount, they have children here, in school, with friends, lives, careers, homes, pets etc, all the same things that keep everyone else where they choose to live. None of them are thinking of emigrating simply because they will be a bit less hugely rich, they will still be hugely richer than everyone else! also if there are some greedsters out there who don't want to pay more tax, we;re better off without them. Selfish prats.

mummypoppins · 25/11/2008 18:16

PCSMUM.............LOL. Does anyone ever want to pay more tax ?

Why are they selfish..................do you give up your last rolo ?

noonki · 25/11/2008 18:19

lol of them all going to Russia - cab't imagine them all living there somehow.

noonki · 25/11/2008 18:20

but mummypoppins - when you earn that amount of money it is hardly going to affect your life style, it's not really their last rolo or last of anything as they have plenty more money coming in.

wannaBe · 25/11/2008 18:23

do people seriously believe that 1% of the population earn so much that their extra 5% income tax will make a difference to the economy?

it is designed to win votes, nothing more.

I don't see why not wanting to pay more tax is selfish. High rate tax payers already pay more than everyone else. if you earn £150k, you will be giving approx £60k to the government. I don't think it's unreasonable not to want to give them any more.

And it certainly isn't going to encourage people to want to better themselves.

mummypoppins · 25/11/2008 18:23

But noonki does that make me selfish ? Its quite a derogatory term.

there seems to be a suggestion that I should div up my income amongst many to avoid being criticised for it!

mummypoppins · 25/11/2008 18:24

wannabe.....at last some support!

pointydog · 25/11/2008 18:25

my, my poppins. Your attitude stinks.

And I like rich people. I base my views on judegements and opinions

wannaBe · 25/11/2008 18:28

"but mummypoppins - when you earn that amount of money it is hardly going to affect your life style, it's not really their last rolo or last of anything
as they have plenty more money coming in." but people live to their means. If you take away more of someone's income of course it will affect their lifestyle. Someone earning £150k doesn't live such a lavish lifestyle that 5% of it is a drop in the ocean...

I hate this culture where people who don't have begrudge those that do. If people are so resentful of others' money why don't they do something about it and aim to better themselves so they can earn more instead of wining about the high earners not paying enough to support them?

wannaBe · 25/11/2008 18:33

let's not forget that as well as paying more tax, high rate tax payers are also entitled to less - tax credits etc are only designed for the "poor".

mummypoppins · 25/11/2008 18:33

why does my attitude stink ponitydog ?

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