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

[soapbox]

????

What's the current top tax rate threshold? I don't earn 150k but my bonus was taxed at 40% last year?

Blinglovin - around £38k I think for the 40% to kick in

Currently (as in 3008/9 tax year) it is £6,035 tax free, the next £34,800 at 20% and anything over that at 40%.

smallwhitecat correct- I thnk the total tax take on this v.small... it'll just polarise certain sectors of soceity who were possibly voting labour previously ...whether it actually swings the vote tory (as I am still unclear wtf cameron would do with the economy except possibly give tax breaks on boden)or lib dem is another question (libdem would be fine if the party was soley vince cable)

Aaah, okay, I'm over that, which explains it. Thanks!

they aren't gonna do it till after the election.
And its only 5 % extra on anything above £150K Which will affect a tiddly portion. Like 1%.
Even the 40% doesn't kicl in till 40K so 95% of the pop don't get affected by that.

I thought they were only going to tax at 45% over 150k? Or is it on the whole amount?

I think the former is fine, tbh. You'd take home £7,872.55 a month before they started taxing you at the higher rate.

They should pay more. What about people on low wages? Their tax was put up 10% overnight.

thats right scummymummy. They already pay 45% on that, now anything over 150K will be taxed at 45%. 1% of the population earns over 150K.

But if you had a big mortgage and outgoings you are spending that much each month and taxing these people will have a negative effect not a positive one.

TBH we were only saying at the weekend that our parents had the best times..........60's and 70's. They are being well looked after in their early retirements.

Unless you have a public sector penison now you will not retire as you will be unlikely to be ever able to afford to.

Ho hum. Back to earning £150k a year...........LOL

FGS anyone who is so greedy that they resent paying higher taxes when they are clearing nearly or more than £8000 per month, is a truly poor person imo.

Why ?? What has greed got to do with it.....presumably if you had the chance to earn it you wouldnt then ?

So someone that was earning £200K fo rexample would give away (in income tax - granted there is NI etc.)

£0 on the first £6035

AND

£5753 on the next £28765

AND

£46,080 on the next £115,200

AND

£22,500 on teh next £50,000

So they pay a total of £74K (just over on earnings of £200K - so 37% overall - they would currently be paying 20,000 on the last £50K...so it is only an effective increase of 1% per year for a £200K earner...when you put it like that it is nothing);

Tis harsh but they pay exactly the same as everyone else on their first £6K/£38K/£150K. They are only being taxed an extra 5% (which is hardly anything) on the sums of money that the majority of the workforce do not earn. Therefore it only affects the minority; and that minority are teh minority that can afford it (relatively speaking); and it is only an increase of 5% over what they are currently paying - so they will hardly notice the increase unless they are 7 figure sums.

AA smoke and mirrors.
The VAT thing won't persuade me to sbuy more,I can assure you.
Typical 'Gordon saves the World' crap.

"FGS anyone who is so greedy that they resent paying higher taxes when they are clearing nearly or more than £8000 per month, is a truly poor person imo. "

i agree with MummyPoppins, what does greed have to do with this? Obviously therefore if I earn more money I should ONLY be spending it on other people, NEVER myself. God forbid?

It won't persuade you to buy more - but it will help to cut the cost of living (a little)

I'm more concerned with the fact that Darling has balanced his budget with £10bn of "value for money savings" in public spending. Surely the budget is already reviewed to ensure that it provides value for money? £10bn is a heck of a lot to find.

Of course these "cuts" are promised after the next election. The extra 5% tax on high earners is only the start of the tax increases that are going to have to come. This is merely an announcement to test the waters as to whether such a tax is platable, and at what rate.

are they reducing VAT on heating gas or is that stayoing the same? Thats the killer.

Also, how does the vat thing work? Realistically, surely the cost for retailers of changing all their labels, electronic systems etc to reflect the new vat, then to change it back again when we go back to the old 17.5% will mean they'll feel justified in whacking on a bit of extra on the price anyway??

Frankly, i wouldn't want to be the guy going around stores changing all those little labels!

Donot plus the fact that the PA will be aboloished for high earners so it will be more than that but I agree not significantly.

Blinglovin but even if you are spending on yourself you are still putting it back into the eceonomy and contributing to free enterprise.

this way its going to the government to waste on a load more jobs worth public servants. And I dont mean doctors / nurses . police or fire etc.........

In reality, I guess, only people on PAYE will pay the additional 5% on earnings above £150K. The rest of people who currently "earn" £150K will earn £149950 on PAYE and the rest on dividends, taxable on a different regime.
Another smoke and mirrors job, a bit like they did when they "doubled the inheritance tax threshold", by formalising what was possible using discretionary will trusts.

I don't know. VAT on fuel is already at a reduced rate (I think).

Personally I think fuel (household) should be zero VAT as it is an essential the same as bread an milk....I guess that is a different debate though.

I don't think it is a good idea.. mainly because it isn't going to recoup anywhere near the extra they are spending.

I also thing that because income tax is a percentage of income people who earn £200,000 are already contributing a great deal more to the pot than someone earning £40,000.

As far as I understand it alot of shops aren't going to pass on the 15% VAT to customers because changing all the labeling for such a small change isn't worth it to them.

So they are showing their true colours - labour = tax and spend, back to the 70s, plus ca change...